Cash 4 Clunk is in a Big Fat Funk

[deacon blues]

Over 400 dealers in NY, hundreds in PA and many across the country are dropping out of cash for clunkers b/c they are owed so much $. The process to get the money is taking so long, dealerships are stopping to offer the program for fear they won't get the money. One dealer who is owed $700,000 states he fears he will never see the money. So far only 2% of the money earmarked for the program has been distributed.

And they want us to trust them w healthcare?

[n david]

Originally Posted by deacon blues

Over 400 dealers in NY, hundreds in PA and many across the country are dropping out of cash for clunkers b/c they are owed so much $. The process to get the money is taking so long, dealerships are stopping to offer the program for fear they won't get the money. One dealer who is owed $700,000 states he fears he will never see the money. So far only 2% of the money earmarked for the program has been distributed.

And they want us to trust them w healthcare?

My thoughts exactly!

[coadie]

The Transportation Department won't say exactly what the rejection rate is, but in an Automotive News survey, some dealers said up to 80% of their rebate applications had been rejected. Some dealers are waiting for payments totaling as much as $200,000, the survey found. About 13% of dealers said they've suspended clunker deals because of red tape and concern about getting paid by the government.

So in federal healthcare, it may take 3 weeks and they reject 80% of hernia surgeries, cholecystectomies and hysterectomies?

so the hospital goes ahead and does the surgery and eventually the Feds say "oops, not covered".

[coadie]

In a survey 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 and overall concern payment problems
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 servere cash flow problems that require short-term loans to fix
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

[coadie]

« BOINGBOING TV: The final segment on The Mighty Boosh….IN THE MAIL: From Esther Friesner, Witch Way To The Mall…. »August 20, 2009
THEY CAN’T HANDLE THIS, BUT THEY’LL HANDLE HEALTHCARE? Dealers stiffed as clunkers pile up. “Some New Mexico auto dealers have backed out of the cash-for-clunkers program and more may do so as the federal government takes its time providing cash reimbursements. Dealers across the state are owed more than $3.6 million, according to a dealers’ group which says that so far Uncle Sam has only written three checks totaling about $14,000.”

(Emphasis added). They promised FedEx, but they’re delivering the Post Office. . . .

[coadie]

Top 10 New Vehicles Purchased --
1. Toyota Corolla
2. Honda Civic
3. Toyota Camry
4. Ford Focus FWD
5. Hyundai Elantra
6. Nissan Versa
7. Toyota Prius
8. Honda Accord
9. Honda Fit
10. Ford Escape FWD

The federal car brands of Chrysler and GM missed out.

[coadie]

"Out of 142 deals they owe us for, we've gotten paid on seven," Lou Tornabeni of Ettleson Hyundai said.

"We had 102 cash for clunkers," Carm Scarpace of Westfield Ford said. "We've been paid for one."

With each Cash for Clunkers deal worth between $3,500 and $4,500, many dealerships are anxiously awaiting their government payday.
The government is still not paying. This is criminal in the business world. The government can cheat and get by with it.