Why Destroy Used Cars?

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Here is an interesting comment to consider after a critical take on cash-for-clunkers at The Atlantic: 
 
The people most hurt by C4C are the lower-income people who would normally be buyers of serviceable used cars worth less than $4500. The government is outbidding them for these affordable vehicles and then destroying them -- driving up the prices of the used cars that remain in the market. It's effectively the automotive equivalent of the government outbidding low-income people for affordable older houses and then bulldozing them to stimulate the construction industry. Seen in this light, it's not just a stupid program, it's actually evil.
 
Can anyone make a good case for destroying the used cars?  It seems that we would be better off donating them, either domestically or to people in developing countries.