Some consider dropping out of program
A growing number of auto dealers say the process of getting paid under the government's "cash for clunkers" plan increasingly resembles some of the wrecks accumulating on their lots as part of the program.
The slow payments coming from the federal government are reinforcing the paradoxical nature of the program for dealers: It has generated the most showroom traffic they have had in months while at the same time heaping unease, frustration and worry onto the industry's worst-ever downturn.
As of the close of business Friday, there was talk in the industry that some dealers are considering pulling out of the clunkers program altogether.
"A number of dealers have floated $100,000 to upwards of $1 million or more" on the clunkers program, said Bill Sepic, president of the Wisconsin Automobile & Truck Dealers Association.
Dealers say they want to see at least some sign that they will be able to recoup that money. Still others need the money to pay bills and meet payroll.
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4 comments:
This government is pathetic. First they contrive this give-a-way, then they screw over the auto dealers on the slow payment.
Each man, woman and child in America is shelling out $9.66 in debt so that some people can trade in a car which is paid for, to go deeper into debt on a new car. Each one of us has taken on this debt! Imagine someone coming to your front door asking for a donation of $9.66 so that someone you don't know can buy a new car. How would you feel?
Now imagine, you agree to take on a debt of $9.66 for each person in your home. You will now pay interest on the money until it is paid off. Your kids will pay the interest after you die. All of this so that some people can buy new cars.
Now we hear that the government is slow to pay the money they borrowed (printed) to the auto dealers! Even their idea for stimulus is creating financial hardship. These dealers would have eventually sold the cars for a fair price and now the cars are gone, yet still no money.
This is crazy.
It's not all the government's fault on this one.
Dealers were offering and processing these deals before the ink was even placed to the paper putting it into effect. THOSE dealers are the ones who are doing the complaining. They're probably the ones with so many rejects too because they just couldn't wait until the program was ready to start. They saw the $$$$$ in their little heads and couldn't see or think of anything else.
Personally, I think it's a BIG mistake to have the program. There are people going out and buying new cars when their old "clunker" was paid for. They cannot afford the payments in this economy.
Gonna be some great used car buys around the corner from all the repos....that's the only bright spot I see.
This is typical of any government program. And how the h-ll do you expect them to run our health care. The same way.
Anon 11:59
Thats what I am waiting for!I cannot afford to take on new car payments and only one of my two vehicles would pass as a "clunker" anyways so I am going to bide my time and in a year or two,there will be a glut of late model used cars beng sold cheap because they will be repos.Ah,America
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