Well, Essie May gets the prognosticators award. It seems the problems with Cash for Clunkers are beginning. Dealers are worried that they've not received their money on these cars. It's put them in a cash flow bind, because that's their $4500 per car tied up. Add to that the problem of storage -- they have to keep those old cars on the lot until they get their money.
Sam Pack of Sam Pack Ford in Dallas says they've sold 200 cars and have more than a million dollars tied up in the program. Despite the government promise of payment within ten days, Pack has received no more then $9000 in reimbursements. Some dealers are so frustrated he said, that they're "stretching on their trades so they don't have to go through the administrative process and deal with the reimbursement issue." If the dealers are turning down money because it's too burdensome to get it, this program must be truly a nightmare. Another argument for keeping the government out of our health care!
Here's the really scary quote from the article I read. Drew Campbell is the president of the New Car Dealers Association of Metropolitan Dallas. He said of the massive amounts of money area dealers have tied up, "We're just having to trust in Obama."
Heaven help us!
"Dealers wonder: Where are our 'clunker' checks?" The Dallas Morning News; August 7, 2009; p. 1A.
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