A growing number of auto dealers say the process of getting paid under the government's "cash for clunkers" plan increasingly resembles some of the wrecks accumulating on their lots as part of the program.
The slow payments coming from the federal government are reinforcing the paradoxical nature of the program for dealers: It has generated the most showroom traffic they have had in months while at the same time heaping unease, frustration and worry onto the industry's worst-ever downturn.
As of the close of business Friday, there was talk in the industry that some dealers are considering pulling out of the clunkers program altogether.
"A number of dealers have floated $100,000 to upwards of $1 million or more" on the clunkers program, said Bill Sepic, president of the Wisconsin Automobile & Truck Dealers Association.
Dealers say they want to see at least some sign that they will be able to recoup that money. Still others need the money to pay bills and meet payroll.
Sunday, August 16, 2009
We want these guys to run health care?
Cash for Clunkers. You'd think these would be a slam dunk for a government bureaucracy to manage. Negative.......