The Obama administration’s mismanaged “Cash for Clunkers” automobile trade-in scheme has fallen into turmoil as dealers have begun to pull out of the program amid complaints that claims are not being paid promply or are being rejected for trivial reasons.
Half of the Greater New York Automobile Dealers Association’s 425 members withdrew from the beleaguered program because Federal Government incompetence is driving them into bankruptcy.
The president of the Greater New York Automobile Dealers Association says about half its 425 members have stopped offering rebates from the program because they can no longer afford them.
Mark Schienberg says the group’s dealers have been repaid for only about 2 percent of the clunkers deals they’ve made, leaving many short on cash.
Just wait until they get a hold of your health care.
I reported yesterday that PA Congressman Joe Sestak says 4 out of 5 of the Cash for Clunkers claims that have been processed by the 225 government employees working on the program have been rejected for stupid reasons.
[PA Congressman Joe] Sestak said only 2 percent of claims have been paid and that four of every five applications have been “rejected for minor oversight.”
[...]
Staffing could be one problem. According to sales data summarized by Transportation Department officials, dealers have submitted requests for rebates on 338,659 vehicles sold.
But while Congress just expanded the $1 billion program by $2 billion, the Department of Transportation says a staff of just 225 people is reviewing those claims.
Some dealers report being on the hook for up to a million dollars due to Obama’s mismanagement of the program.
Like That? You'll Probably Like These.
- Cash For Clunkers Keeps Poor From Owning Cars, Dealers From Making Payroll
- ObamaCare Preview: Each $4500 Clunker Costs $9594
- Cash For Clunkers A Wasteful Foreign Car Bailout
- CNBC: Goodbye, Cash For Clunkers
- Edmunds: Each ‘Clunker’ Transaction Cost Us $24,000
