NY dealers pull out of clunkers program - Fuck Big Govt!
 

http://www.breitbart.com/article.php...show_article=1

NEW YORK (AP) - Hundreds of auto dealers in the New York area have withdrawn from the government's Cash for Clunkers program, citing delays in getting reimbursed by the government, a dealership group said Wednesday.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.

I guess the point is that if a dealership is already on the edge of bankruptcy, there isn't much that is going to help. In order to participate the dealership would need to have some cash reserves as you would expect in any business. The plan intended to help viable businesses that needed a boost in inventory turnover, so that production could be boosted. It was not intended to rescue a business where the owner already has pen in hand ready to sign the bankruptcy papers.

They waited so long? Hasn't only been like 3 weeks since it started?

I watched the story on the news last night. Supposedly the dealers took in hundreds of amounts of cars and only received money from the government on the 3 cars. They were pulling the programs Statewide.

I am one of those new car owners.

dealerships getting fucked over? karma is a bitch...

The Anal Hobbit won't be happy.

So what... 3... 4 weeks??

How long will health care last?? :1orglaugh

I had read that after the first couple of weeks of this program there have been about 300,000 applications and only about 10% of them had been processed. I think it is fair to say the government underestimated how popular this program would be.

Probably a fair number of numbnuts er I mean, fine car salesmen who couldn't follow directions and submit the forms right. I've heard that's also a problem that's clogging up the process.

I saw one dealer interviewed on TV and he claimed that he was owed well over one million dollars by the government and he was going to have to withdraw from the program as he could not put out anymore money...without being paid.

boo fuckin hoo.

Yes thats what I am hearing as well. When the dept. of transportation has to sift through all the half assed deals that slows things down.

lets not forget that bunch of requests were probably fraudulent, by both customers + dealers themselves... so the government is probably double checking to make sure all the requests for $$ are legit...

This program has generated a couple new employees for each dealership...I guess they will lose their jobs.

I really feel sorry for a moribund industry, with a reputation for screwing customers, and which recently received billions of dollars in taxpayer bailouts, for feeling a pinch - quite possibly due to their own greed and attempts to bend the program to their own advantage (legally or not).

http://www.johnstrunk.com/img/d/148-...r_salesman.jpg

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+1

If it wasnt for the government saving their asses with OUR bailout money, they would be sitting at home on welfare right now. I dont think they have much room to bitch.

No doubt a lot took advantage of it

My old hoopty didn't meet standards =/ I got a good 20MPG 2MPG over the limit

I've read quite a bit about the situation. The government underestimated the success of the program so they were severely understaffed and did not have all of the proper infrastructure set up upon program launched. Then, the dealerships are not following through with all of the rules and paperwork they are supposed to be completing, which is causing problems with being reimbursed.

I'm all for bashing the government when appropriate... in this scenario, the dealers are wrong. They should be happy that program was put in place, it's keeping them alive right now.

What a shit show.

I bet there will come an audit that will say they took in way more trades and owe dealerships way more than the program had allotted. Whoopsie!

Your tax dollars at work :(

Big government in action....... I guess we should give them control over most of the elements of our lives because bureaucrats always know what is best for the rest of us. :disgust

They should have computerized it all. Scan and upload required documents, with guidelines for each sale to be checked off and signed by the dealership manager.

Would have kept everything uniform...

sounds like another industry I know

:2 cents::2 cents::2 cents:

You summed it up nicely. Fuck em. :thumbsup

If your business is teetering on collapse after 3-4 weeks, then you are not viable and should go out of business. This is the government after all. When have they ever done ANYTHING fast?

:2 cents: