Car Dealers Agree: Cash For Clunkers a Failure

The National Automobile Dealers Association is urging the federal government to shut down the Cash for Clunkers program immediately. Already, 13% of dealers nationwide have dropped out of the program.

Car Dealers Reviews reported, via Free Republic:

The National Automobile Dealers Association is urging the federal government to begin shutting down the Cash for Clunkers program immediately.

In a statement released Wednesday evening, NADA said that, given the rapid pace at which deals are being done, it will be difficult to say when the program’s funds may run out.

But Transportation Secretary Ray LaHood said earlier Wednesday that all dealers would be reimbursed.

However, the NADA said, in its statement, that the group had “confirmed elsewhere” that dealers would not get paid if cash ran out.

Although, according to press reports, Secretary LaHood stated today that “there will be no car dealer that won’t be reimbursed,” NADA believes that this is based on DOT’s view that sufficient funds remain available. It is important to note that NHTSA has confirmed elsewhere that if the program’s money runs out before a dealer is reimbursed, that dealer will not be paid.

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

Let’s give them health care!

More… Dealers stiffed as clunkers pile up.

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