Cash For Clunkers Is Getting The Hook!

It’s about time too!

The Cash for Clunkers program has been a disaster of significant proportions, which is quite sad considering how insignificant and minuscule this program is on the scale of things.  If a simple clunker program that the Germans have been using, although they have had their own issues, can’t even be run effectively and efficiently for a month, how can the government run programs that will directly impact our lives/well-being?  The simple answer is: They Can’t!

Even if we forget what is in the health care bill for a second, just think of an entity that has never sucessfully run anything, and the consideration of handing your life, your childrens’ lives, your friend’s lives, your parents’ lives over to them?  Excuse me if I’m a little skeptical. 

The Cash for Clunkers program has had too many flaws in too short a period of time.  It has been a bad business investment for many dealers because they can’t even get reimbursed by the government.  They are sitting there with losses on their books, crossing their fingers for some future payment.  If a dealership is small enough and is dependent upon payment within a period, of let’s just say, net 30 days – this could spell disaster!

The Obama administration plans to end the popular $3 billion Cash for Clunkers program on Monday, giving car shoppers a few more days to take advantage of big government incentives.

President Barack Obama said in an interview Thursday that the program has been “successful beyond anybody’s imagination” but dealers were overwhelmed by the response of consumers. He pledged that dealers “will get their money.”

Dealers have complained of delays in getting reimbursed and backlogs of vehicle paperwork getting processed in the program. Dealers have said they face a risk of not being reimbursed but LaHood has pledged that dealers will get paid for the incentives.

President Obama and his administration are still as delusional as ever.  I’m not sure how you call a program an economic success when charities were hurt, used car dealerships were damaged, dealers participating in the program had to give away vital information to the government via cars.gov, some may not get reimbursed, and all-in-all they found the following via a survey from cardealerreviews.com

Transportation Secretary Ray LaHood said earlier Wednesday that all dealers would be reimbursed.

However, the NADA said, in its statement, that the group had “confirmed elsewhere” that dealers would not get paid if cash ran out.

Although, according to press reports, Secretary LaHood stated today that “there will be no car dealer that won’t be reimbursed,” NADA believes that this is based on DOT’s view that sufficient funds remain available. It is important to note that NHTSA has confirmed elsewhere that if the program’s money runs out before a dealer is reimbursed, that dealer will not be paid.

In an Automotive News survey of nearly 800 dealers,

-97% of dealers who responded, say the government is not reimbursing fast enough
 
-13% of dealers have dropped out the program because the government is not reimbursing fast enough

-87% percent of dealers are concerned the money will be exhausted
 
-3% of CARS program deals have been reimbursed
 
-66% of dealers have not received one payment from the government
 
-25% of dealers are experiencing severe cash flow problems that require short-term loans to alleviate

-11% of submitted applications have been approved (though dealers still are waiting for the money)

-16% of submitted applications have been rejected

-55% of dealers are not confident they will get reimbursed for every deal
 
-40% do not want the program to continue, even if changes are made to the CARS program

For more opinion/write-up on Cash for Clunkers go here.

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1 Comment

Filed under Cash for Clunkers, Economy, Government Spending, Obama, Obama Administration

One response to “Cash For Clunkers Is Getting The Hook!

  1. Pingback: Twitter Trackbacks for Cash For Clunkers Is Getting The Hook! « The Crabby Constituent [crabbycon.wordpress.com] on Topsy.com

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