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View Full Version : U.S. Issues NY dealers pull out of clunkers program


petegz28
08-19-2009, 12:12 PM
NEW YORK (AP) - Hundreds of auto dealers in the New York area have withdrawn from the government's Cash for Clunkers program, citing delays in getting reimbursed by the government, a dealership group said Wednesday.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.

http://www.breitbart.com/article.php?id=D9A63RC81&show_article=1

petegz28
08-19-2009, 12:12 PM
It's these kinds of stories that really make me feel good about the Fed Gov wanting to take over our health care......:spock:

memyselfI
08-19-2009, 12:16 PM
http://cache.vegas.com/lounge/images/implosions/implosiondesertinn.jpg

donkhater
08-19-2009, 01:12 PM
"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."



And this for a paltry $3 billion program.

Side note: I can't believe I just called a $3 billion program paltry. That's how insane the federal budget has become.

blaise
08-19-2009, 02:12 PM
This isn't true. I read that this program is changing the world. I think it was on MTV.

KC Dan
08-19-2009, 02:14 PM
This isn't true. I read that this program is changing the world. I think it was on MTV.nope, msnbc

InChiefsHell
08-19-2009, 02:21 PM
I hope all those dealers start to sell the stupid "clunkers" that they got traded in...if the gov can't get their shit together then they should be allowed to sell these cars...the one's that are sellable anyway...

blaise
08-19-2009, 02:22 PM
nope, msnbc

The HuffingtonPost cofirms.

KC Dan
08-19-2009, 02:25 PM
I hope all those dealers start to sell the stupid "clunkers" that they got traded in...if the gov can't get their shit together then they should be allowed to sell these cars...the one's that are sellable anyway...I think (though I'm sure not legal due to their agreement) that if the gov't fails to pay them their cashola that the dealer should be able to sell the clunker traded in to make up for his loss due to the gov't incompetance, lack of prepardness or whatever you want to call it.

InChiefsHell
08-19-2009, 02:38 PM
I think (though I'm sure not legal due to their agreement) that if the gov't fails to pay them their cashola that the dealer should be able to sell the clunker traded in to make up for his loss due to the gov't incompetance, lack of prepardness or whatever you want to call it.

Yep, too bad the dealers didn't get some kind of 30 day guarantee of payment, and if that 30 days expires then they can sell the cars. But where the hell would they store all these vehicles?

This whole thing is yet another example of how the gov just can't help but screw the private sector, even (and I'm being very charitable here) if they really think they are trying to help...

KC Dan
08-19-2009, 02:47 PM
Yep, too bad the dealers didn't get some kind of 30 day guarantee of payment, and if that 30 days expires then they can sell the cars. But where the hell would they store all these vehicles?

This whole thing is yet another example of how the gov just can't help but screw the private sector, even (and I'm being very charitable here) if they really think they are trying to help...Boy, you should have heard the anti-corporate crowd last night at Rep. Baird's townhall. Anytime anyone started or even hinted at going after a corporate entity, they went nutz. The class warfare is a very huge deal and is being used as a hammer because the proponents of these gov't proposed programs have no real persuasive arguments to back up their positions and they see publi opinion sliding away. They are freaking out because they know that now they MUST get all of their plans done only with their side and they also know that means a possible bloodbath next fall.

Rooster
08-19-2009, 02:50 PM
"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."

http://www.breitbart.com/article.php?id=D9A63RC81&show_article=1

Let's let them do health care too. :shake:

orange
08-19-2009, 02:54 PM
Yep, too bad the dealers didn't get some kind of 30 day guarantee of payment, and if that 30 days expires then they can sell the cars. But where the hell would they store all these vehicles?

This whole thing is yet another example of how the gov just can't help but screw the private sector, even (and I'm being very charitable here) if they really think they are trying to help...

You probably don't realize the program started July 24 - less than 30 days ago.

Rooster
08-19-2009, 02:54 PM
I hope all those dealers start to sell the stupid "clunkers" that they got traded in...if the gov can't get their shit together then they should be allowed to sell these cars...the one's that are sellable anyway...

They can't. The are forced to pour some kind of liquid into the engine (I don't know what it is) that locks up the engine and ruins the car. It must me recycled and not sold again.

Halfcan
08-19-2009, 05:09 PM
what a complete waste of money

KC Dan
08-19-2009, 05:18 PM
what a complete waste of moneyNot from BRC's standpoint!

Halfcan
08-19-2009, 05:20 PM
the taxpayers funded a bunch of new rides to people who probably didnt really need them

BS

Brock
08-19-2009, 05:21 PM
The auto manufacturers think it's great.

Halfcan
08-19-2009, 05:24 PM
The auto manufacturers think it's great.

I bet they do-they get to sell all new clunkers that wont last 10 years.

a half a million people just went into more debt buying a depreciating asset-how the hell is that good for the economy!

Saul Good
08-19-2009, 05:24 PM
The auto manufacturers think it's great.

That's all the evidence I need.

Saul Good
08-19-2009, 05:29 PM
I bet they do-they get to sell all new clunkers that wont last 10 years.

a half a million people just went into more debt buying a depreciating asset-how the hell is that good for the economy!

It just dawned on me that I will reap the rewards of this. I am a relatively high-income earner who spends money frugally. I buy used cars that are still in near-mint condition and drive them until they keel over.

There is going to be a huge glut of nearly new cars available in the next couple of years as people who had no business financing a new car get repo'd. Sounds like 2011 will be a great time for me to plan on buying a couple of new cars.

orange
08-19-2009, 05:37 PM
It just dawned on me that I will reap the rewards of this. I am a relatively high-income earner who spends money frugally. I buy used cars that are still in near-mint condition and drive them until they keel over.

http://www.frugallawstudent.com/wp-content/uploads/2007/02/tightwad.jpg

Saul Good
08-19-2009, 06:33 PM
http://www.frugallawstudent.com/wp-content/uploads/2007/02/tightwad.jpg

Yep. I'm just a greedy asshole because I live within my means. I just told you that this program is going to wind up benefiting me. If I was greedy, I would be all for the program. I'm still against it. The unintended consequences alone make it a dumb idea. Once you factor in the price tag, it's a joke.

Maybe if the clunkers were sold to the lower-income earners at a greatly reduced price, I would reconsider. Instead, we destroyed perfectly functional cars thus making reliable transportation more difficult to obtain. Why don't we go burn down some perfectly good houses and make the homeless watch while we pay the owners of those houses to buy newer, more luxurious, homes while we're at it?

BucEyedPea
08-19-2009, 07:15 PM
http://www.frugallawstudent.com/wp-content/uploads/2007/02/tightwad.jpg

Not that there's anything wrong with that!

ROYC75
08-19-2009, 07:44 PM
Obama :The Fed's do everything right!

jjjayb
08-19-2009, 10:26 PM
argghhhh.