Cash for Clunkers Still Behind on the Cash Part

Edward Niedermeyer
by Edward Niedermeyer

Let’s not kid ourselves, the cash is the important part. And though the CARS legislation requires the DOT to refund dealers for their clunker deals within ten days, Automotive News [sub] reports that it just ain’t happening. Transportation Secretary Ray LaHood said last week that the bugs had been worked out of the CARS computer system, and the National Auto Dealers Association concurred. “There are kinks still left in the system, but they, too, are being worked out,” NADA spokesfolk said at the time. Turns out they spoke too soon.

“They’re angry and nervous,” is how NADA is characterizing dealer reactions today. “They’re getting fed up with the program.” A number of dealers explain that they are still waiting for refunds worth tens of thousands to hundreds of thousands of dollars. “I’m worried the government will run out of money before we get paid,” says one, a California dealer with $374K worth of claims older than the ten-day limit and nearly $2 million in total unpaid claims. Yikes!

Edward Niedermeyer
Edward Niedermeyer

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  • Dingram01 Dingram01 on Aug 14, 2009
    Airhen: Dude, open your eyes and read the bill and it’s control of health care. For all your complaining about insurance companies, just wait until the Federal government is in charge. So, you've read through the 5000-page bill and know this? John Horner is correct.
  • Joevwgti Joevwgti on Aug 14, 2009

    I am still finding it absolutely disgusting that we're killing the engines of these "clunker" cars as part of gov mandate. So, anyone left with one of these cars will have a hell of a time getting parts. I don't know about the rest of you, but an old car getting 18mpg vs a new one getting 21 doesn't really justify the creation of all that vehicle, and do we all really need SUV's and giant pickups? They're purpose vehicles, if you have 7 kids (so sorry if you do) then get a huge suv and drive it with them in it. If you have a huge diesel pickup drive it with a 5 horse trailer behind it, or a 5th wheel. Don't tool around town shooting out black smoke like it's something we all enjoy hearing and seeing.

  • U mad scientist U mad scientist on Aug 14, 2009

    When was the last time you mailed in a rebate and got money back in a reasonable amount of time? It's been what, a couple weeks? Since this is public money and several thousand, I'd certainly want them to check the claims a bit more than $20 on a keyboard.

  • Yankinwaoz Yankinwaoz on Aug 15, 2009

    slateslate... The dealer has to destroy the clunker before submitting the forms. If they let your mom hold it, then there is a good chance that they won't get paid, and they get fined. Regarding holding the new car until they get paid. I think that is not allowed. She might want to file a complaint about that with the staff.