New York Car Dealers Bailing On Disastrous Cash For Clunkers Fiasco

The federal government owned and operated “Cash for Clunkers” program has turned into an absolute disaster and many car dealers in New York have said they’ve had enough of this mess and have decided to throw in the towel.

New car dealers across America are stuck with millions of dollars out of pocket on the line while waiting to get reimbursed from the government for the up to $4,500 rebates that all taxpayers are paying for whether they happened to purchase a new vehicle or not.

According to some simple calculations the program’s $3,000,000,000 ÷ the roughly 16,000 nationwide participating dealers = about $187,500 available to each dealer. $187,500 ÷ by an average $4,000 per rebate = a grand total of about 47 vehicles per dealer. One could surmise that any sales beyond that number could quite possibly put the dealer in danger of eating the four grand even if the rest of the program was running smoothly and according to plan. Dealers were initially told they would receive these rebates within 10 days yet many consummated deals are weeks old and all these business owners are still waiting for their dinero from uncle Obama.

It appears it was a rare clever move made by the Congressional committee that came up with this pig of a program to force the dealers to destroy the trade in vehicle’s engine before they could even apply for the rebate. This way the dealer is truly screwed. They can’t even attempt to unload the functioning ‘clunker’ in an effort to recoup at least some of the money they have lost due to the inability of the government to properly execute this charlie foxtrot of a cash for clunkers nightmare. You know it really does suck having such an anti business administration in power doesn’t it?

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Hundreds of auto dealers in the New York area have withdrawn from the government’s Cash for Clunkers program, citing delays in getting reimbursed by the government, a dealership group said Wednesday.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

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Things don’t seem to be going so swell in New Mexico either…

Some New Mexico auto dealers have backed out of the cash-for-clunkers program and more may do so as the federal government takes its time providing cash reimbursements.

Dealers across the state are owed more than $3.6 million, according to a dealers’ group which says that so far Uncle Sam has only written three checks totaling about $14,000.


Don Chalmers’ dealership received the most reimbursement so far.

“I pay my bills,” Chalmers said. “If I was three weeks or four weeks late on paying my taxes I suspect that they would be in my office real quick.

“We just expect the same sort of courtesy and treatment from the federal government.”

The rest of this article can be read here>>>

OK step right up folks. Who needs some serious medical care administered by the U.S. government? Anybody?

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One Response to New York Car Dealers Bailing On Disastrous Cash For Clunkers Fiasco

  1. Indianapolis Auto Dealers says:

    It really would be nice to see the small business start to thrive again. I’m afraid that may never happen 🙁

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