NY dealers pull out of clunkers program

[WriteDown]

Source: AP

NEW YORK (AP) -- Hundreds of auto dealers in the New York area have withdrawn from the government's Cash for Clunkers program, citing delays in getting reimbursed by the government, a dealership group said Wednesday.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

Schienberg said the group's dealers have been repaid for only about 2 percent of the clunkers deals they've made so far.....

Read more: http://hosted.ap.org/dynamic/stories/U/US_CASH_FOR_CLUNKERS_DEALERS?SITE=TXDAM&SECTION=HOME&TEMPLATE=DEFAULT

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They can't fire up those presses fast enough!

[xultar]

1. Dealers are by in large Republican. Nuff said.

[WriteDown]

2. Link?

In metro NY?

[xultar]

5. Dealers in general consider themselves small business owners. Small business owners

usually buy the repub bull that Democrats want to tax small business. Thus small business owners are republican.

What, you think there aren't any republicans in Metro Ny?

[WriteDown]

6. You're kidding right?

And people who wear white t-shirts also tend to be Republican :eyes:.

[xultar]

8. OMG. OK not all dealers are republican. Feel better? When GM was going

under all the blather was about republican dealers felt they were getting shafted by the Obama Administration.

[aquart]

27. Most ridiculous thing I've ever heard.

But small businesses ARE treated as cash cows by local governments. They don't get any of the tax breaks that large corporations do.

[xultar]

14. OMFG and here is your fucking link..Nevertheless, the list of contributions tilts Republican by 3/1

http://www.fivethirtyeight.com/2009/05/news-flash-car-dealers-are-republicans.html

[WriteDown]

17. You do see the obvious fallacy in that right?

?

[xultar]

19. OH and here is your fucking breakdown

I'm not a goddamed idiot and don't treat me as such.

[Doctor_J]

37. Someone did a survey after Limpballs claimed that only GOP dealers

were being closed. It turned out that 80% of car dealers are Repukes.

[RantinRavin]

3. So you are saying they are not getting paid

because they are republican ?

[xultar]

7. I'm saying they are drumbing up this bullshit because they are republican. Net 30...

has it been 30 days yet since the cash for clunkers started?

They are just bringing in the MSM because they want CforC to look bad because it is an Obama Administration initiative.

[cherokeeprogressive]

18. Did you just pull that out of your ass?

The program officially started on July 1. Nowhere in the law does it state that the terms for reimbursement are "net 30". Nowhere. In fact, this is what it says:

"establish procedures for the reimbursement of dealers participating in the Program to be made through electronic transfer of funds for the amount of the vouchers as soon as practicable but no longer than 10 days after the submission of information supporting the eligible transaction..." The emphasis is my own, for your benefit.

http://www.cars.gov/files/official-information/law.pdf

[xultar]

21. I'm saying though in business you usually don't start bitching until after 30 days anyway.

They could give the government a little fucking time.

WTF is this, DU I take shit so literal that I can't fucking function? GEEZ.

[cherokeeprogressive]

22. If the law says I am to be reimbursed no longer than 10 days after submitting the paperwork, that's

when I'll start bitching.

What's so hard to understand about that?

[WriteDown]

24. I believe they were told 2 weeks.

It depends on when payroll is due and how much they are out of pocket.

[RantinRavin]

23. as a matter of fact, it's been 51 days

since the program started.

[xultar]

25. Well then I'm en error and they should be pissed. As long as it is over 30 days

I'm o.k. with the bitching.

Carry on.

[OneTenthofOnePercent]

4. I don;t think party has anything to do with it.

If you're promised reimbursement and the system is not working, the smart move is to stop incurring debt.

[madokie]

13. The thing of it is I would bet that there's more bullshit in that story than truth

But republicons do want Obama to fail and will do any and everything in their power to do so.

[madville]

31. This isn't a huge conspiracy to make Democrats look bad

It's a common business practice. If a customer owes you a large sum of money and is slow to pay you don't extend them more credit until the current debt is satisfied. They thought they were going to get reimbursed in 10 days and are out of money until the government pays them for the first wave of clunkers. I would stop doing it as well until I saw the system was functioning correctly.

[brendan120678]

9. If they have to pay the initial rebate...

out-of-pocket, I can understand why they may be a little worried about getting the money due to them ASAP.

But still, paperwork sometimes takes time to process. The program is only a few weeks old, right? How quickly do the dealers expect the rebates to come in? Even income tax refunds sometimes take 6 - 8 weeks to process.

[WriteDown]

12. The problem arises when you have to make payroll...

or expenses and the money isn't there.

[brendan120678]

15. Yes, I understand that much...so I won't get too critical...

of car dealers when they start to get worried. Especially dealers who have done a large volume of CARS transactions.

[cherokeeprogressive]

20. The program officially started July 1, and as the law is written, reimbursement to dealers

is to be made "through electronic transfer of funds for the amount of the vouchers as soon as practicable but no longer than 10 days after the submission of information supporting the eligible transaction...".

http://www.cars.gov/files/official-information/law.pdf

[Zen Democrat]

10. The Obama Administration has added more processors for these loans.

It has been so massively popular that they were swamped with paperwork. I read that they had tripled the number of staffers and are relieving the backlog.

But if these folk in NY don't want to participate, somebody else will get the deals. Because these deals will go on until the money's all spent.

[WriteDown]

16. Whoever has the most cash reserves on hand...

ie the richest dealers are the ones likely to profit from this.

[SemperEadem]

26. or those who manage their money best

[SemperEadem]

28. dupe

[mysuzuki2]

11. This program appears to have been very successful

I have been looking for a new car and there are very few on the lots. Dealers are not very willing to negotiate over price because they've been selling so many cars. If they really expected to get their government rebates immediately, they were very unrealistic. How long does it take to get a tax refund check?

[madville]

30. Usually a week or two if you do everything electronic n/t

[ejpoeta]

29. that's funny, because the local news reported that GM is ramping up production

so local powertrain plants are busy busy busy.... I can understand their frustration, but I think they are making a mistake in the long run.

[Skink]

32. Probably be worth it to drive up to NH where there is virtually no sales tax.

[customerserviceguy]

36. You'll end up paying it

when you go to license that bought-out-of-state car in NY.

[DU GrovelBot]

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[lib2DaBone]

34. This is not a right vs left problem...

The dealers have to pay out of pocket for this cash for clunkers program. Also, I hear from dealers... that the paperwork for this program is horrendous.

The dealers can not destroy these cars until they get re-imbursed.. and their back lots are full, awaiting payment.

The dealers are afraid they are going to get stiffed for this money...at a time when they can least afford it. (I don't think I blame them)

Someone in Washington needs to kick ass and get these checks out to the dealers... the money has been allocated.. what's the holdup?

[provis99]

35. they'll get back in the program once the checks roll in

These dealers are profit-motivated; they won't pass up the Clunkers program in the long run. this is just a short term withdrawal until the backlog clears up, so I can understand their reasoning.

[and-justice-for-all]

38. Yeah, they are the only dealer ships in the US and should be paid first..

blah blah blah.. They will be repaid and this is a lame ass excuse if you ask me.