More Dealers Opt Out of Cash for Clunkers as Slow Claim Processing Hurts Cash Flow

Car Dealer Review ^ | Car Dealer Review

[wrrock]

Since the start of the government CARS program, only two percent of claims have been processed — and dealers are waiting for the cash. The 'cash for clunkers' debacle begs the question to government run health-care supporters: Why do you want your health insurance claims processed like this?

Watch Video: http://www.cardealerreviews.org/?p=116506

[RetroSexual]

The dealers were fools to jump into bed with the US Government, let alone this government. I think it shows how desperate they are.

[John123]

only two percent of claims have been processed

That's funny... I remember how p.o. the WH was when the banks wouldn't loan out the excess money...

[Redleg Duke]

I have a 1996 Ford Explorer with 197k on it. I haven’t the heart or conscience to go the “Cash for Clunkers” route. It wouldn’t be moral to screw the dealers.

[deport]

They are abonding this program in droves because they can't take the lead time on their cash flow...... Who can blame them. Only the Gov't state/fed can operate that way.

200+ NY Dealers opt out of Cash for Clunkers program

[This_far]

It wouldn’t be moral to screw the dealers.

Be a wise consumer, pre-shop, ask them who they voted for.

[massgopguy]

Watch what happens. In the end, all these dealers will have lost $4,500 per vehicle.

[devane617]

...and who would have dreamed that an old SUV would have brought down the dem party. almost poetic...

[throwback]

The programmers and processors they brought to the task could not handle what unexpectedly turned out to be an extraordinarily successful program.

Depends on your definition of success I guess. When these new cars leave the lot, doesn't the dealer have to pay the manufacturer? How do dealers front all this money while waiting for uncle zero to come through and make them whole? Maybe they can get some TARP or TALF money to tide them over, and then pay the taxpayers back with interest. Glad I don't run a dealership with help like this.

[This_far]

Watch what happens. In the end, all these dealers will have lost $4,500 per vehicle.

The government is already overpaying since they had to add personal to do the back log of paperwork (eh, no big deal as far as fiascos go)

Dealerships are already losing if they have any C4C "sold" vehicles on floor plan.

Remember when the manufacturers started the 'employee pricing' incentives? When they stopped, so did sales (customers waited for the next incentive).

That is what to expect next... no sales.

[Norman Conquest]

How many of these dealerships are GM or Chrysler shops under a death sentence?

How many will be tomorrow?

[Mikey]

I have a 1976 Chevy G-10 van 250 CID 6 cylinder engine, turbo 350 transmission with 800,000+ miles on it. The options that came with it at that time were,

1). Automatic transmission (turbo 350),

2). Front disk brakes (non-power brakes)

3). Power steering

I (when I was around)kept it well tuned and lubed. When I wasn't around a friend did it for my parents.

1). All original, except things such as brakes, plugs, cap, wires, U-joints, etc. At 600,000 miles I changed the upper and lower control arm bushing on both sides,

2). Original distributor (new caps, rotors and wires installed as needed),

3). Tranny tuneups every 50-75,000 miles,

4). Regular oil changes/filter every 2,500-3,500 miles(including lube and checking rear gear oil),

5). Regular tuneups as needed,

6). Wheel bearing checked and repacked every 25,000 miles or if needed replaced.

This van was purchased by my mom & pop in '76. Mom passed away in '98 and pop gave me the van. Pop passed away a few months ago (90 years old)and the van still runs great.

I'll never, ever get rid of it. It's paid for itself a 100 times over and owes me nothing.

When I hear people talk about how their 1999-200? auto's have 250,000 or so miles on it I laugh. I tell them to contact me when it hits a 1/2 a million and still running great.

To me fuel mileage isn't the only perquisite in a vehicle. Over all costs are.

The original cost of the van was $4,000. It gets around 12-15mpg. It still gets the same mileage today whether fully loaded with stuff or empty.

The insurance to this day is only $250 per year. A fuel pump cost's (my cost)$25 and takes me approx., 45 minutes to install.

Its not pretty. It doesn't have all the bells and whistles. It is still reliable low cost transportation. In my opinion paying $25,000-? per car because it gets 25 or so mpg is stupid.
When those pretty cars start breaking down, the cost of the parts and labor to install them are in the stratosphere. I worked on a 2001 mistashitzy something or another a year or so ago that needed a complete rack and pinion system. The list cost of the system was $2,000 and the labor that I charged was $350. Other shops might charge as high as $500 to install it.

All the money saved in fuel costs gets wiped out.

I've pulled up behind some 2007 automobiles with the hoods open in my van and worked on them on the side of the road and I chuckle every time.

People tease me and say why don't I get a new car / van / truck? I say why, so I can break down also? New cars in my opinion are nothing but pretty, expensive pieces of sh*t.

The only vehicles I have are the van, a 1972 and a 1981 Harley Davidson. I will not buy a new vehicle.