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Author Topic:   O'Bomber Has Screwed Up the Cash For Clunkers Program

Posts: 618
From: Madeira Beach, FL USA
Registered: Apr 2009

posted August 17, 2009 06:01 PM     Click Here to See the Profile for jwhop     Edit/Delete Message
If any more proof were needed there's a group of clowns in the O'Bomber administration...with O'Bomber as "Clown in Chief; one only need to look to the Cash for Clunkers program.

More than 300,000 cars were sold on this program.

Dealers have taken $3500-$4500 off the price of the cars they sold but haven't been paid by O'Bomber.

In the meantime, Dealers have fronted this programs cost. They've had to pay the Auto Companies for the cars, they've had to pay flooring costs to "factors" and they've had to pay all their overhead costs of doing business.

And...O'Bomber hasn't paid them back the 3500-4500 per car. O'Bomber owes some of these dealers more than a million dollars.

The average dealer profit on a new car sale is about $1000.

Dealers showrooms are almost empty of new cars because they don't have the cash to fund new purchases...because O'Bomber hasn't paid them.

Their car lots are full of used cars they can't sell which are marked CKs. Those new cars have been delivered to buyers who are driving them around and are now...used cars.

Only 2% of the transactions under the Cash for Clunkers have been processed and of those, O'Bomber's minions have rejected 80% of the claims. The dealer's paperwork under this program is subject to daily change and claims are being rejected for utterly absurd reasons.

Everyone should be sooo proud they've helped people who were going to purchase a new car anyway by giving them the cash to entice them to do so now...right out of taxpayer's pockets.

This program is going drive up the cost of used cars. You cannot take that many used cars out of circulation without a steep rise in and demand. The demand for used cars is still there; it's the supply which is being "Save the Planet".

Additionally, just wait until all those destroyed cars catches up to the demand for used parts and used parts become scarce. Same and demand drives prices.

If you absolutely, positively must have something screwed up, hand it off to O'Bomber and the clowns in the White House.

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Posts: 618
From: Madeira Beach, FL USA
Registered: Apr 2009

posted August 19, 2009 01:27 PM     Click Here to See the Profile for jwhop     Edit/Delete Message
This is what always happens when private sector businesses get in bed with government....Socialist Fascism, which is the natural home of Fascism. They get screwed.

Car Dealers Angry Over 'Clunker' Repayments
Wednesday, August 19, 2009 11:55 AM

WASHINGTON -- Transportation Secretary Ray LaHood is assuring car dealers that they will be reimbursed for the popular Cash for Clunkers program.

LaHood told reporters Wednesday he understands that some dealers are frustrated about delays in getting paid for the $3 billion car rebate program. But he promised, "They're going to get their money."

LaHood says the Obama administration plans to provide more details this week on how much longer the car incentive program will last.

Some dealers have said their reimbursement requests have not been approved, leading to a cash crunch. Through Tuesday, auto dealers have made deals worth $1.72 billion. The program offers car buyers rebates of $3,500 or $4,500 for trading in older vehicles for new, more fuel-efficient models.

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Posts: 618
From: Madeira Beach, FL USA
Registered: Apr 2009

posted August 19, 2009 04:23 PM     Click Here to See the Profile for jwhop     Edit/Delete Message
Dealers are pulling out of the Cash for Clunkers program.

Main reason? So far, it's all been their cash and they haven't been repaid the $3500 to $4500 per transaction they fronted for O'Bomber's program.

These Socialist clowns can't even run a 3 billion dollar program...yet they want to take over 17% of the entire US economy and run health care which runs into trillions.

Delusions of granduer.

NY dealers pull out of clunkers program
Aug 19 02:00 PM US/Eastern
AP Auto Writer

NEW YORK (AP) - Hundreds of auto dealers in the New York area have withdrawn from the government's Cash for Clunkers program, citing delays in getting reimbursed by the government, a dealership group said Wednesday.
The Greater New York Automobile Dealers Association, which represents dealerships in the New York metro area, said about half its 425 members have left the program because they cannot afford to offer more rebates. They're also worried about getting repaid.

"(The government) needs to move the system forward and they need to start paying these dealers," said Mark Schienberg, the group's president. "This is a cash-dependent business."

The program offers up to $4,500 to shoppers who trade in vehicles getting 18 mpg or less for a more fuel-efficient car or truck. Dealers pay the rebates out of pocket, then must wait to be reimbursed by the government. But administrative snags and heavy paperwork have created a backlog of unpaid claims.

Schienberg said the group's dealers have been repaid for only about 2 percent of the clunkers deals they've made so far.

Many dealers have said they are worried they won't get repaid at all, while others have waited so long to get reimbursed they don't have the cash to fund any more rebates, Schienberg said.

"The program is a great program in the sense that it's creating a lot of floor traffic that a lot of dealers haven't seen in a long time," he said.

"But it's in the hands of this enormous bureaucracy and regulatory agency," he added. "If they don't get out of their own way, this program is going to be a huge failure."

The program is administered by the Department of Transportation. Transportation Secretary Ray LaHood said Wednesday that dealers will be repaid for the clunkers deals they have completed.

"I know dealers are frustrated. They're going to get their money," LaHood told reporters. He said the Obama administration would soon announce how much longer the $3 billion car incentive program will last.

Through early Wednesday, auto dealers have made clunkers deals worth $1.81 billion, resulting in 435,102 new car sales, according to the DOT.

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Posts: 618
From: Madeira Beach, FL USA
Registered: Apr 2009

posted August 20, 2009 03:53 PM     Click Here to See the Profile for jwhop     Edit/Delete Message
Dealers stiffed as
clunkers pile up
Updated: Thursday, 20 Aug 2009, 12:47 AM MDT
Published : Thursday, 20 Aug 2009, 12:35 AM MDT
Reporter: Alex Tomlin
Web Producer: Bill Diven

ALBUQUERQUE (KRQE) - 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.

Cash for clunkers--officially its the Car Allowance Rebate System--allows consumers to trade their gas guzzlers for a more fuel-efficient rides while earning up to $4,500 toward the purchase price.

Dealerships put up the cash for the rebates after being told by the Obama administration they would be paid back within 10 days of the sale.

With that much cash in limbo they've called in reinforcements.

"You simply can't ask businesses to front $200,000, $300,000 for any period of time," Rep. Martin Heinrich, D-N.M., told KRQE News 13. "These applications are simply not being processed fast enough.

"So we are going to be on the phone today to the White House and to the feds in DC to try and get this moving.”

Don Chalmers' dealership received the most reimbursement so far.

"I pay my bills," Chalmers said. "If I was three weeks or four weeks late on paying my taxes I suspect that they would be in my office real quick.

"We just expect the same sort of courtesy and treatment from the federal government."

Chalmers said his dealership has sold about 70 cars under the clunkers program.

Lawton Davis' dealership has had more than 60 cars driven off the lot because of the incentive. But the go-green event has left him with no green from the government.

”I'm a little frustrated by it, and we have had to make adjustments in our business plan to accommodate it." Davis said.

While those dealerships will survive the wait, others said they can't afford to keep putting up cash.

“These are substantial dollars of money when you break it out into the individual dealership," Charles Hensen with the New Mexico Automotive Dealers Association said. "The impact on a small dealership is a hard thing to overcome especially when you are dealing with the cash flow."

”They need to get these applications paid for in the next week," Heinrich said. "This has gone on to long." Heinrich said.

So far more than 650 cars have been traded in through the program statewide. The incentive is expected to end Nov. 1 or whenever federal money for the program runs out.

The U.S. Department of Transportation is handling the money. The agency has tripled the workforce assigned to the program to try and get more checks out to dealers quickly.

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