Cash for Clunkers

[Jake]

Another shining example of government efficiency...

(AP) - Hundreds of auto dealers in the New York area have withdrawn from the government's Cash for Clunkers program, citing delays in getting reimbursed by the government, a dealership group said Wednesday.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

A local dealer was telling me the other day that he is waiting for over $400,000 in rebates. It seems having to front that cash himself is actually hurting his ability to run his business. Stimulus anyone?



NY dealers pull out of clunkers program

[jimotis4heisman]

The Columbus Dispatch - News

WASHINGTON (AP) -- The Obama administration will bring to an end the popular $3 billion Cash for Clunkers program on Monday, giving car shoppers a few more days to take advantage of big government incentives.
The Transportation Department said Thursday that the government will wind down the program on Monday at 8 p.m. EDT. Car buyers can receive rebates of $3,500 or $4,500 for trading in older vehicles for new, more fuel-efficient models.
"It's been a thrill to be part of the best economic news story in America," Secretary Ray LaHood said in a statement. "Now we are working toward an orderly wind down of this very popular program."
Through Thursday, auto dealers have made deals worth $1.9 billion and are on pace to exhaust the program's $3 billion in early September. The incentives have generated more than 457,000 vehicle sales. Administration officials said they have reviewed nearly 40 percent of the transactions and have already paid out $145 million to dealers.
...

well short of 10% payout to dealers. in addition ends monday at 8pm

[Jake]

Dealers are going to get screwed. Once the program is over, the feds won't care about them. Millions of voters won't know any better and will think it was a great thing (even though we're stuck with the tab) whether the dealers actually get paid or not.

[Best Buckeye]

Don't knock the government on this shining example of how they will run programs.

[Best Buckeye]

I just have to laugh what I heard today if true. Now that the cash for clunkers program is over people are finding out that the plan calls for the $4,500. to be taxed as regular income.
Way to stimulate tax revenues Obama. That's rich .

[NewYorkBuck]

One thing I have learned in my new business - if your survival depends upon govt programs (in my case, Medicare/Medicaid), then you are dead. There are so many M/M companies for sale right now that do what I do. They are for sale b/c they just cannot make money.

[Jake]

Your tax dollars at work...

During the month long program, Billion Automotive sold close to a thousand vehicles but has only been reimbursed for 272 of them. Vern Eide sold over 200 cars and has only been paid for 27 of them, and that's fueling lots of concerns in the auto industry.

Billion Automotive cashed in during Cash for Clunkers, but owner Dave Billion is still waiting for the rest of his money from the government run program, $3.2 million.

"I wonder how long they'd wait if I owed them $3.2 million? I think they'd be at my door or at least my banker's door," Billion said.

But they did pay some claims...

When Cash for Clunkers was first announced, dealers were supposed to be reimbursed within 10 days of a sale. Billion says that hasn't happened.

"The program started in July and we haven't gotten paid for cars we sold back then, but then on the other hand we got paid for a car we sold last week. They don't have an accurate format. It's not like they're taking the first deals that were submitted and working those. I don't know how they're doing it, no idea. I know it's very random" Billion said.

News, Weather and Sports for Sioux Falls, South Dakota, Minnesota and Iowa

[jimotis4heisman]

i heard the number of forms was between 15 and in excess of two dozen depending on which forms were applicable. amazing.

[jimotis4heisman]

Used-Car Prices Shift Into Higher Gear - WSJ.com

Here's one economic indicator that's flashing green: used-car prices.
Prices for second-hand cars took a hit late last year, along with the prices of many other assets. But since the start of this year, a combination of tight supplies of both new and used vehicles and higher demand from a frugal public have pushed average used-car prices to the highest levels in years, industry watchers say. Demand seems particularly strong for used SUVs, analysts say, reflecting lower gas prices.
...One widely followed measure of used-car prices, the 14-year-old Manheim Used Vehicle Value Index, will likely hit a record when data for September are released in early October, says Thomas Webb, chief economist for Manheim Consulting, a subsidiary of Cox Enterprises Inc.

its not really hard to figure it out. you destroy millions of used cars in the c4c program and what happens? its not rocket science its stuff you learn the first week of your first economics class. its basic you destroy the supply and what happens? price goes up. its simple economics, then again i was never taught obamanomics... basic economics have two inputs, supply and demand, you jerk one around in a drastic measure and you have massive shifts. in this case you have the govt saving itself (gm and chrysler) in the guise of helping folks while sticking it to young kids, the working class and working poor... nothing short of infuriating really, these are the groups that bleed their loyalty with amazing persistence and the Ds pretend to protect and care for, while sticking it to them in the name of selling a few cars to make their massive auto bailouts and nationalization look halfway respectable...

[jimotis4heisman]

Edmunds:Cash For Clunkers Cost Taxpayers $24K Per Vehicle Sold - WSJ.com

The government's "Cash for Clunkers" program may have only added 125,000 vehicle sales, according to Edmunds.com, which said the rest of the units sold would have happened regardless of the program.
In total, the car-shopping Web site said about 690,000 vehicles were sold during the program. Edmunds.com said that based on the actual sales gained from the program, the Cash for Clunkers program cost taxpayers $24,000 per vehicle sold.
"Our research indicates that without the Cash for Clunkers program, many customers would not have traded in an old vehicle when making a new purchase," said Edmunds.com senior analyst David Tompkins. "That may give some credence to the environmental claims, but unfortunately the economic claims have been rendered quite weak."
Edmunds.com Chief Executive Jeremy Anwyl noted that while sales are up in October from September, growth would have been even better without the program. He said that suggests the auto industry's recovery is gaining momentum.
Sales surged in late July and most of August as the program was in effect, giving certain new-car buyers up to $4,500 in rebates if they traded in a gas-guzzler. But U.S. auto sales slid in September absent clunker-related deals. Other countries still have so-called scrappage programs in effect.

24k per car, would it have been cheaper to give away some freshly minted us govt issue autos with a sticker of 24kish, oh say the impala?
2009 Chevrolet Impala Dealers and Price Quotes Search | DealerNet

[NewYorkBuck]

Cash for Clunkers costs taxpayers $24,000 per car - Oct. 28, 2009

More of the same. Actually, its more than that because the program was paid for with borrowed dollars.

With financial wizadry like this, I really feel comfortable turning over the countries largest business (health care) to the government.......

[Bucklion]

Originally Posted by NewYorkBuck

Cash for Clunkers costs taxpayers $24,000 per car - Oct. 28, 2009

More of the same. Actually, its more than that because the program was paid for with borrowed dollars.

With financial wizadry like this, I really feel comfortable turning over the countries largest business (health care) to the government.......

Oh, but the cost doesn't matter at all...haven't you gotten the memo?

[DubCoffman62]

Originally Posted by Best Buckeye

I just have to laugh what I heard today if true. Now that the cash for clunkers program is over people are finding out that the plan calls for the $4,500. to be taxed as regular income.
Way to stimulate tax revenues Obama. That's rich .

[spurrier]

only the blind didn't see this coming. It is hilarious to now talk to the individuals who thought this was so great.

[BuckeyeMike80]

Originally Posted by NewYorkBuck

Cash for Clunkers costs taxpayers $24,000 per car - Oct. 28, 2009

More of the same. Actually, its more than that because the program was paid for with borrowed dollars.

With financial wizadry like this, I really feel comfortable turning over the countries largest business (health care) to the government.......

What a joke.....and yet it's so typical of anything coming from DC....