Mustang Forum - Mustang World - Dealers shunning cash for clunker deals because the gubment are deadbeats

08-19-2009, 07:22 AM

Richard F. Togo

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Dealers shunning cash for clunker deals because the gubment are deadbeats

Apparently they can't print the money up fast enough / deduct it from your checks.

Maybe Japan should send some support money since toyota is now the biggest clunker beneficiary.

Either way nice to see a smoothly run government program.

Quote:

Some dealers are dropping out of the cash-for-clunkers program as concerns about payment delays and administrative snarls mount.

"I've got to start getting paid," said Ron Morehead Jr., general manager of a Honda dealership in Kingston, N.Y. "Enough is enough."

Morehead decided this morning to suspend clunker sales. He has already had to turn customers away. He said he has yet to receive payment for any of his 42 clunker deals worth about $175,000.

Morehead isn't the only one. More than 90 dealers out of about 710 responding to an Automotive News survey today said they also had suspended clunker sales because of repayment concerns and other headaches they've had managing the program.

Duke Brubaker, general sales manager of Champion Ford-Lincoln-Mercury-Mazda in Owensboro, Ky., said Champion stopped clunker sales Friday night.

"It's just a mess, an absolute mess," Brubaker told Automotive News. "There is a billion dollars of dealerships' money on the road."

$1.72 billion in claims

As of today, dealers had submitted claims to the U.S. government for 411,624 clunker transactions worth $1.72 billion. The government has not said how much has been reimbursed to dealers. But at the end of last week, only a small fraction had been paid, according to the National Automobile Dealers Association and some state dealer associations.

Dealers' claims are now being rejected at a "dramatically" lower rate because data-entry errors have declined, setting the stage for a speed-up of the rebates, a Transportation Department spokesman said today.

The rejection rate has been as high as 80 percent in recent weeks, according to NADA officials.

But in the last 10 days, the rejection rate has fallen substantially to an unspecified level following efforts by NADA and Transportation officials to train dealers on proper data entry, said the Transportation spokesman, who asked not to be identified.

With its 50 deals, Champion is owed about $210,000, Brubaker said. He has received no transaction approvals from the U.S. government even though he submitted his first deal on July 27. Several were rejected in what a program administrator later described to the dealership as a system error on the government's end, Brubaker said.

Great debate

Even dealerships that are sticking with the program for now are debating their continued participation.

Joe Cardello, general manager of Jay Wolfe Toyota-Scion of Kansas City, Mo., said he had decided Monday to suspend clunkers deals because of lack of payment. "I was getting a little nervous," Cardello said.

But his majority partner opted to continue clunker sales -- for now. The dealership has written 77 deals and has been paid for 18 so far, Cardello said. That leaves the dealership waiting for $250,000 or so in reimbursements.

Carl Woodward, a dealership accountant in Bloomington, Ill., is warning his clients to be careful about writing any new deals.

"If the government is this far behind, those dealers that submit deals at the end might not be paid," Woodward told clients in an e-mail message.

Dealers expressed anger and frustration about how the program has been administered so far. One told Automotive News that he took a baseball bat to the windshield of one of the vehicles turned in by a customer.

Said Morehead: "Good thing I had a clunker here on the lot. I took my frustrations out on the car, instead of throwing my computer through the window."

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Last edited by Richard F. Togo : 08-19-2009 at 07:28 AM.

08-19-2009, 07:43 AM	#2
P51-SN95 Biff-12 on the PSN Join Date: May 2002 Location: was Western NY,Now Erie PA Posts: 6,313	yep, just had a story on the local news. Local Nissan dealer has said it's done over 100 clunker deals but has only gotten paid on 2 of them, they say there about $500k in the hole right now cause of it. The Mazda/Dodge dealer said they've been paid for about a third of their deals and are owed about $80-100k and the Ford Dealer is claiming to only have been paid on "a couple" of clunker deals. Surprisingly the only dealer not complaining is the Chevy/GM dealer. Hmmm wonder if being "Gov't owned", they get the money first. EDIT: the Nissan dealer said they are not "seizing" anymore engines for now, incase they need to use them as leverage, or at worst sell them off to try and offset some of their loss. __________________ PS3 Trophies Banner by SILVERWING Black '98 V6 5-speed FR-500 Seats Bullitt 13" brakes Steeda Sport springs Steeda Triax Shifter Steeda Undrive Pullies Pace Setter True Dual exhaust K&N filter and tons of interior stuff. 2007 Escape XLT V6 4WD Tungeston Grey Last edited by P51-SN95 : 08-19-2009 at 07:46 AM.

08-19-2009, 08:42 AM	#3
impulse2k dubya. tee. eff. Join Date: Nov 2002 Location: az Posts: 849	And they want to run the health care system. __________________

08-19-2009, 08:43 AM

SaleenPowr

Slut Slayer

Join Date: Sep 2004

Location: Tampa...

Posts: 27,573

Quote:

Originally Posted by impulse2k

And they want to run the health care system.

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Greg
2007 Wrangler Unlimited X 4-Door, Metallic Red with 6spd manual
MW80's Crew #5

08-19-2009, 08:46 AM	#5
JJ_Jonathon Ribbed For His Pleasure Join Date: Dec 2003 Location: University of Florida Posts: 8,231	I'll admit - this was a pretty good trick by Obama. I think everyone will benefit in the long run by the govt not paying out. __________________

08-19-2009, 08:49 AM	#6
impulse2k dubya. tee. eff. Join Date: Nov 2002 Location: az Posts: 849	You don't even have to have a social security number to turn in a clunker. And they want to limit it to people who make < 40k/year . Please. __________________

08-19-2009, 08:49 AM

Richard F. Togo

School Yard Bully and Ban Proof

Join Date: Jun 2001

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Quote:

Originally Posted by impulse2k

And they want to run the health care system.

I assume a healthcare program would take more than 2 months to put together..

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08-19-2009, 08:50 AM

Richard F. Togo

School Yard Bully and Ban Proof

Join Date: Jun 2001

Location: The Oil and Gas Capital of the free world

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Quote:

Originally Posted by impulse2k

You don't even have to have a social security number to turn in a clunker. And they want to limit it to people who make < 40k/year . Please.

so there is an income limit on the cash for clunker program?

Interesting.. any details?

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08-19-2009, 08:51 AM

Lurker45

pay that man his money

Join Date: Oct 2004

Location: location, location

Posts: 27,729

clearly this is wrong togo, nobody here could fathom c4c being a bad program

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Quote:

Originally Posted by Porno Nate

Im amazed at ur knowledge.

Quote:

Originally Posted by oneball

dont try to put meaning behind my words...

08-19-2009, 08:51 AM

#10

Maple

I swear im not black.

Join Date: Mar 2006

Location: Where Fromez is not.

Posts: 20,427

Dealer around here that has sold 70+ cars under that shlt. He's going to get FVCKED.

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Quote:

Originally Posted by drevil7171

I'll wait for the Haiti edition with the Shaker hood

08-19-2009, 08:52 AM

#11

Richard F. Togo

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Join Date: Jun 2001

Location: The Oil and Gas Capital of the free world

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Quote:

Originally Posted by Lurker45

clearly this is wrong togo, nobody here could fathom c4c being a bad program

bad mgt does not necessarily equate to a bad program - generally.

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08-19-2009, 08:54 AM

#12

impulse2k

dubya. tee. eff.

Join Date: Nov 2002

Location: az

Posts: 849

Quote:

Originally Posted by Richard F. Togo

so there is an income limit on the cash for clunker program?

Interesting.. any details?

So sorry.. < 50k.

http://consumerist.com/5331385/cong...g-less-than-50k

"As part of the deal in the Senate, the Democratic leadership agreed to allow debate on seven amendments to the bill, six from Republicans. One, to be considered Thursday and offered by Senator Tom Harkin, Democrat of Iowa, would set income limits on who could receive the money. Under his proposal, only individuals with adjusted gross incomes of less than $50,000.."

edit: I was hinting that it was proposed. Why should I pay for someone else to get a check (or apparently not, since they can't get it right

) when I drive the same car?

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08-19-2009, 08:55 AM

#13

IRSmart

On a steel horse I ride

Join Date: Nov 2007

Location: Westminster, MD

Posts: 2,594

Quote:

Originally Posted by Richard F. Togo

so there is an income limit on the cash for clunker program?

Interesting.. any details?

no income level, i think that they were misunderstanding that the MSRP of the new vehicle must be under $5,000 before any options or destination charges, basically the base MSRP, not total MSRP

EDIT: just read the above post

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08-19-2009, 08:55 AM

#14

beanbat

Registered User

Join Date: Mar 2001

Location: AZ

Posts: 32,776

Quote:

Originally Posted by Richard F. Togo

so there is an income limit on the cash for clunker program?

Interesting.. any details?

no, I don't think there is any income limit.

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08-19-2009, 08:57 AM	#15
Frito "May Cause Anal Seepage" Join Date: Jul 2003 Posts: 19,687	My buddy runs the largest GM dealership in our area. And he told me they haven't been paid one cent for any of the C4C cars. All of the cars they took in are sitting in a lot behind the dealership. Said they are not touching them until they collect from daddy Obama. Sad part is, he and I had huge fights over his voting for Obama. Said it was time for change. Told him yesterday, "So, how you liking that change?" He said, fvck you! and hung up on me. __________________

08-19-2009, 08:58 AM

#16

venomsvt

loldonkaments

Join Date: Oct 2000

Location: The small wave capital of the world

Posts: 7,261

is it really any surprise?

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Quote:

Originally Posted by WankMyYoda

It's most likely in the seat...because I can play for 3/4 hours in one seat in one room, and win absolutely nothing, then in my first 10 hands in another room, i'm up over 400k. Explain this.

"The significant problems we face cannot be solved with the same level of thinking that created them" - Albert Einstein

08-19-2009, 09:01 AM

#17

Richard F. Togo

School Yard Bully and Ban Proof

Join Date: Jun 2001

Location: The Oil and Gas Capital of the free world

Posts: 778,978

Quote:

Originally Posted by IRSmart

you don't have to explain it to me.

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08-19-2009, 09:02 AM	#18
Se7en FellaGuy on PSN/Live Join Date: Apr 2002 Location: Can I Groove A Jump Off Your Bake? Posts: 19,330	Talked to my family at the dealership a few days ago, they wrote 83 deals and haven't been paid on any of them. Apparently they east coast rep for the CARS program went on a two week vacation the day after the program started. Our government is great. __________________

08-19-2009, 09:03 AM	#19
nickoutrun Got Rice Bitch? Join Date: Aug 2006 Location: The State of Hockey Posts: 3,821	The housing crisis is already in full swing. How soon before all of these people that did this cash for clunkers get their shiats repo’d? There’s a reason they were driving a piece of crap in the first place. I predict that there will be a record number of repo’s in the coming months. __________________

08-19-2009, 09:04 AM

#20

Richard F. Togo

School Yard Bully and Ban Proof

Join Date: Jun 2001

Location: The Oil and Gas Capital of the free world

Posts: 778,978

Quote:

Originally Posted by nickoutrun

The housing crisis is already in full swing. How soon before all of these people that did this cash for clunkers get their shiats repo’d? There’s a reason they were driving a piece of crap in the first place. I predict that there will be a record number of repo’s in the coming months.

yes looking at the top selling cars, I can see how a payment netting out a 3,500-9,000 discount on an 18-23,000 dollar car will cripple someone.

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