Car Dealers say Clunkers a Failure

[JMJ]

Survey: Car Dealers say Clunkers a Failure as 97% Report Problems, Call for Program to Stop

Car Dealer Review

8/20/2009

The National Automobile Dealers Association is urging the federal government to begin shutting down the Cash for Clunkers program immediately.
In a statement released Wednesday evening, NADA said that, given the rapid pace at which deals are being done, it will be difficult to say when the program’s funds may run out.

But Transportation Secretary Ray LaHood said earlier Wednesday that all dealers would be reimbursed.

However, the NADA said, in its statement, that the group had “confirmed elsewhere” that dealers would not get paid if cash ran out.

In an Automotive News survey of nearly 800 dealers,

97% of dealers who responded, say the government is not reimbursing fast enough
13% of dealers have dropped out the program because the government is not reimbursing fast enough and overall concern payment problems
87% percent of dealers are concerned the money will be exhausted
3% of CARS program deals have been reimbursed
66% of dealers have not received one payment from the government
25% of dealers are experiencing serve re cash flow problems that require short-term loans to fix
11% of submitted applications have been approved (though dealers still are waiting for the money)
16% of submitted applications have been rejected
55% of dealers are not confident they will get reimbursed for every deal
40% do not want the program to continue, even if changes are made to the CARS program
.

READER REACTION

“The lack of cash is killing us,” one dealer said in the survey. “The lack of any kind of feedback from the government for the rebate applications is appalling.”

“My office manager got so fed up last week, she threatened to quit.”

“As I stated when the program first started, do not roll out a program until all the i’s are dotted and the t’s are crossed. That is just good business 101.”

“We stopped because we have only gotten two payments out of 120,” another dealer said. “They keep rejecting for various reasons, and the process is entirely too slow.”

“As a dealer, I would just as soon this program had never been approved despite the sales,” one respondent said. “It is a nightmare for all of us.”

http://www.cardealerreviews.org/?p=116533

[Gregcyber]

Sounds like Obama's healthcare plan will fail too.

I guess Sarah Palin's talk of a Death Panel are true or the lack of any panels .

[fab]

JMJ-Greg, did you guys cash your clunkers?

[JMJ]

Originally Posted by fab

JMJ-Greg, did you guys cash your clunkers?

No. I went the craigslist route. I traded my Eldorado for a Silverado with a gas guzzling 350 straight piped and dueled out with no cat converter. I heard carbon dioxide was great for plant growth so I want to contribute to that growth.

[Raider]

You got to admit though, it was a great idea by Obama... Pay the American people to buy new cars and use their own tax dollars to do it with.

Brilliant.

And to think I was the one who said Obama couldn't improve the economy, what was I thinking?

LMAO!!!

[jberryhill]

97% of dealers who responded

Does the phrase "self-selected sample" mean anything to you?

[Gregcyber]

WASHINGTON – The Obama administration will 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.

http://news.yahoo.com/s/ap/20090820/...h_for_clunkers

[jberryhill]

Okay, so let me in on the joke, Greg. The program generated higher volume than anticipated, and was designed for specific monetary limits.

Absolutely, the DoT has put on additional staff to process the claims. Also:

http://www.bloomberg.com/apps/news?p...d=aMeb13lYvGf4

General Motors Co. plans to provide cash advances to dealers awaiting government rebates as the initiative spurs auto demand, GM said on its Web site today.

The advances will be made for qualifying new-vehicles sales already exchanged under clunkers through the life of the program, GM said on its Web site today.

The government’s initiative may give GM its best sales this year in August. New-vehicle retail sales in the U.S. will top 1 million in August for the first time in the past 12 months, J.D. Power & Associates forecast today.

Ford Motor Co. is increasing the availability of credit for dealers’ used-vehicle financing to provide cash flow relief to dealers awaiting ‘clunker’ payments from the government, said Meredith Libbey, a spokeswoman for the automaker’s loan unit.

It's like the iPhone launch, or any other product where inrush demand exceeded expectations, and the automakers are working with the dealers, the DoT and NADA (who met with the DoD to work out the concerns noted in the OP).

Several car makers, including Ford Motor Co. and General Motors Co., have stepped up production to meet the surge in demand for fuel-efficient cars triggered by the program. Toyota Motor Corp. and Honda Motor Co. have also reported an upswing in sales of their thriftier sedans as a result of the rebates.

The Department of Transportation said most consumers taking advantage of the program have traded in pick-up trucks or SUVs for vehicles providing, on average, about 60% better fuel efficiency.

Oooohhh... reducing petroleum consumption... bad, very bad.


http://www.nydailynews.com/money/200...t_to_end_.html

Mark Schienberg, president of the Greater New York Automobile Dealers Association representing 450 dealerships, complained that the government has been slow in paying back the dealers - but gave an overall thumbs-up to the $3 billion program.

"After all is said and done, I think dealers will find this was a very good program for the Obama administration to have put together," Schienberg said. "It worked real well," except for the slow pace of reimbursements, "where things started to fall apart," Schienberg added.

I have clients who treat all invoices as "90 day net", so maybe I'm in the wrong business.

But I think it's a little early to assess this program's impact. On a related note, I notice that nobody in this forum has mentioned the TARP repayments above the amounts lent. Why is that?

[Doc Com]

I've got to say that all the segments shown on local TV interviewing the dealers has been extremely positive.

The issue is a plan that was originally designed to last a couple of months was broke in a week! How big of a failure is that?

Seems like we would all like to have our domains sell with such overwhelming response.

Sure some dealers are getting a little antsy over the vouchers but the back log is mammoth.

If you want to *****, ***** to your congressperson about getting the money out to the dealers faster.

[Raider]

My prediction is the White House will use the new cars sales data, to bolster the position the economy is improving, which it obviously isn't.

[jberryhill]

I've got to say that all the segments shown on local TV interviewing the dealers has been extremely positive.

Well, the national NADA organization is a lobbying organization that may not have the same agenda as any particular dealer. The one dealer in my neighborhood liked it too, and his dealership had a tent sale last week to handle the influx.

When you go through the "related articles" looking for specific local dealer or dealer organization quotes, the picture seems different:

http://www.philly.com/philly/busines...ds_Monday.html

"It shows you how successful the program has been," said Kevin Mazzucola, executive director of the Auto Dealers Association of Greater Philadelphia, which represents more than 200 dealerships. "The bottom line is that they are ending it on Monday to ensure there is enough money to pay claims by the dealers for the deals getting done.

"The dealers better batten down the hatches, because it will be a very busy weekend with car purchases," Mazzucola said.

The complaints are about "slow payments" from a program that launched July 27.

This is August 20.

Does everybody here get their invoices paid by their customers in 30 days (and the program started on July 27, meaning we're talking about payments on the bulk of transactions in less than 30 days)?

[Fearless]

Originally Posted by jberryhill

I have clients who treat all invoices as "90 day net", so maybe I'm in the wrong business.

Oh, I have 90 days to pay?

[Doc Com]

Dealers were delighted to move inventory that they were paying for sitting on their lots. One dealer was fretting over not getting inventory in as he had sold more than 150 automobiles.

In case you missed it, one person went as far as to trade in a highly coveted 1985 Maserati BiTurbo with 18,000 original miles on it.

A performance car, I remember a good friend had a 1974 Maserati Bora when we were in Italy together. Had dual carbs the size of fish bowls in that thing. About 9 miles to the gallon. He was the second owner. I know he brought it back to the states with him. He probably made a mint on selling it then.

[jberryhill]

Originally Posted by Fearless

Oh, I have 90 days to pay?

You didn't pay yet?

Cristin keeps track of that stuff, and we do put 30 days on the invoices.

The first 60 days is me getting around to sending them out.

(But, unlike you, I don't wait two years to cash a check)

[Raider]

I wonder what Obama's next stimulus will be?...hmmm

Cash for Computers
Cash for Homes
Cash for Clothes
Cash for Jewelry
Cash for Guns
Cash for Stash
Cash for Appliances
Cash for Furniture
Cash for Cameras
Cash for Coins
Cash for Condos

I figure by the time we trade in all our assets for new ones, I'll be over a million dollars in debt... But hey, I'll have all new stuff right? You cant get any better than that.

LMAO

[Gregcyber]

I wonder what Obama's next stimulus will be?...hmmm

Could be a $1000.00 check for joining acorn

[Raider]

Originally Posted by Gregcyber

Could be a $1000.00 check for joining acorn

Good one, He's going to need all the fraudulent votes he can get for his re-election campaign.

[JuniperPark]

Originally Posted by Raider

I wonder what Obama's next stimulus will be?...hmmm

Cash for Computers
Cash for Homes
Cash for Clothes
Cash for Jewelry
Cash for Guns
Cash for Stash
Cash for Appliances
Cash for Furniture
Cash for Cameras
Cash for Coins
Cash for Condos

I figure by the time we trade in all our assets for new ones, I'll be over a million dollars in debt... But hey, I'll have all new stuff right? You cant get any better than that.

LMAO

You missed one... CASH FOR DOMAINS!

Trade in your overpriced, over-hyped long tail dash riden .com domains for a much nicer .INFO, and taxpayers will kick in an extra $4500!

If this actually happened and I suddenly make 10,000 quick sales I would NOT be complaining that the tax money took more than 30 days to get here.... 90 is fine!

[Doc Com]

Hmm, seems to me we started 2000 out with a 2Trillion surplus.

then, we had a president who said...

lets give that money back to the people!

What a grand idea. Every single person got 600, a couple got 1200 bucks.

Many, even in his own circle...Bush was told not to do this. Programs need help.

Nope. We have it so let's give it away.

Well, along about 8 years later, he says lets give everyone some more money so they can feel good about the shitty situation we've put them in...

So, off we go giving every single person 800 bucks and couples 1600.

Isn't that something...first we had the money surplus that should have gone to better use. Then, we give away more money that we don't have.

That's right...I got $3800 and I didn't trade shit in.

Cash for clunkers?

No, no, no...I think it was intended to be Cash for Votes.

[Raider]

Originally Posted by Doc Com

Hmm, seems to me we started 2000 out with a 2Trillion surplus.

then, we had a president who said...

lets give that money back to the people!

What a grand idea. Every single person got 600, a couple got 1200 bucks.

Many, even in his own circle...Bush was told not to do this. Programs need help.

Nope. We have it so let's give it away.

Well, along about 8 years later, he says lets give everyone some more money so they can feel good about the shitty situation we've put them in...

So, off we go giving every single person 800 bucks and couples 1600.

Isn't that something...first we had the money surplus that should have gone to better use. Then, we give away more money that we don't have.

That's right...I got $3800 and I didn't trade shit in.

Cash for clunkers?

No, no, no...I think it was intended to be Cash for Votes.

Oh yeah, Bush with the help of a Democratc controlled House and Senate, voted for a stimulus to pursuade voters to vote for McCain/Palin.



I knew you were stupid Doc, but not this stupid.