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Logically, either scenario would have been consistent with Mob practice. They probably would have taken it to a junkyard to be crushed, with Carlo in it, or simply have abandoned it in some remote spot, as with Paulie after Rocco shot him.
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I used to wonder why they just left Paulie in the car, not realizing it was his car. I wonder who they got to get the mattresses, now that Paulie was out of the picture.