8/20/2009

Cash for Clunkers is a Clunker


I went with a friend of mine recently to the Chevrolet dealer near my home. He has an old Oldsmobile 98 he has driven in and around town forever. So, with the idea of getting $4500 for it thanks to Uncle Sam's Cash for Clunkers program, he decided to inquire. To make a long story short, the dealer made it known that the federal government has reinbursed only 5% of the dealers in our state (Alabama). That being the case, he was going to be required to sign a document holding him responsible for that $4500 if the feds don't come up with the money. Of course, we both laughed at the salesman. But, it seems this is a problem nationwide. In the state of New York [article link] alone, the federal government has only paid about 2% of the clunker deals. Furthermore, about half of the 425 dealers participating in Cash for Clunkers have left due to non-payment. According to the report (that is linked), many of the dealers are fearful of not being paid at all.

The salesman was sympathetic about the whole deal. He said privately, if it was him, he wouldn't sign that document either requiring the buyer to pay the $4500 if the feds don't come up with the money after a certain length of time. When the program gave out of money within 4 days of its inception, that should have been a clue that the people who initiated this program gave no forethought to what might happen. With slow and non-payment to the car dealers, it is no wonder the Cash for Clunkers program is a clunker in and of itself. And these are the people that want to takeover our health care? LOL!!!




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