Skip to comments.Car dealers steamed about slow pay on Cash for Clunkers
Posted on 08/19/2009 6:44:17 PM PDT by george76
U.S. Transportation Secretary Ray LaHood assured car dealers Wednesday that they will be reimbursed for the money they have fronted to customers buying vehicles under the Cash for Clunkers program.
LaHood was responding to complaints over a backlog of rebate payments. Dealers must cover customer rebates out of pocket and wait for reimbursement from the federal government. Some have said their reimbursement requests have not been approved, leading to a cash crunch. Thats key because dealers typically borrow money to put new cars on their lots and must repay lenders within a few days of a sale.
I know dealers are frustrated. Theyre going to get their money, LaHood told reporters in Washington, D.C.
In Tulsa, dealership owner Henry Primeaux said he has yet to receive a single refund from the Department of Transportation on $450,000 worth of rebates his company has submitted.
Were going to run out of money pretty fast, said Primeaux, owner of Primeaux Kia. Thats a lot of money out of our pocket.
(Excerpt) Read more at tulsaworld.com ...
No Cash for Suckers.
Next hospitals will have a Cash for Grannies program.
Pray for America
Here is a copy of the letter I began posting a couple weeks ago.
Obamas Clunker of a Car Program
The cash for clunkers is in trouble not only because it is running out of money, but because dealers are unsure about how and if they will be reimbursed. The dealers sign all the papers with the customer, turn over the new car, and then submit the documents to the government for analysis and payment.
The process seems similar to the federal direct student loan program I refused to participate in when I was finance manager for a private college. After carefully reading the regulations, I discovered there was no point at which the Department of Education formally and unconditionally accepted the loan papers. Years later when a student defaulted there was nothing to prevent the government from returning the loan package to the college, and demanding payment in full for a just then discovered error according to the regulations they wrote. In Oregon I had the option of working with the state and private lenders to access the federal loan programs.
Car dealerships are not as fortunate. When other dealerships in the area are getting sales, a finance manager who brings up the uncertainties and frustrations of working with a typically imperious bureaucracy will lose.
“You f**ked up. You trusted us.”
Hey, why don’t we just not pay the car dealers and we save $3 billion!
How totally lacking of American way of him to complain in these times of crisis! /major sarcasm
We've been saying for over a year now that these Keystone Kops politicians, advisors and administrators haven't a clue about anything, and are fundamentally incompetent.
And these are the same people who want to run our entire health system?
President Obama has taken pen to paper and signed off on Cash-for-Clunkers, a law that could help the auto industry shake its year-long funk. The Transportation Department now has 30 days to determine the rules and regulations for Cash-for-Clunkers, placing the start of the program at the end of July.
I guess he figured he would just keep printing money until we have Zimambwe style inflation.
This red SOB is your typical leftist moron, he and his PR men know all about getting imbeciles to vote him into power, and nothing about running the nation.
The shape of things to come if we accept 0bamacare
Looks like our President got into this mess without a clear follow through plan for after the initial action was over.
Hey, wait a minute, where have we heard that before?
Yeah, unfortunately the problem couldn’t be solved by blaming “whitey” and the “jews”.
It would be interesting to find out if the dealers who are not getting their money, are mostly foreign branded car dealers, whereas the ones who are getting reimbursed, are domestic branded car dealers?
I hope the dealers get screwed just for sucking up to the devil.
I still remember how the CEO of GM went begging for a bailout, secured it, then obamma fires him.
They can burn for all I care.
They should have given every car owner $4500 and let us use it as we wish. My car gets 35-39 mpg. It has 300,000 miles on it. I’ll NEVER qualify for any cash for clunker program.
And don’t even suggest I purchase a hybrid or electric car. Do you know how they make electricity?
An Obama voter: There’s one born every minute!
THINK of the mess if the Fed.gov tries to implement a gun “buyback” program! LOL.
If they offered me $4500 for my old .45, I would sell it to them in a minute!
C4C is a quagmire.
(see my tagline!)
I just know they would gain market share!
I don't understand this lack of connection with the consumer. At first Ford did not take money from the government and they blew that opportunity to drum up customers.
Now they take part in this bull.