It’s been a common lament across the country for the last couple weeks now, and more and more dealers are asking the same question: “Where’s my clunker money?”.
The cries come from all over the United States, and no one is immune. Just to catch you up, here’s a quote on the current status of the Cash for Clunkers program:
A study last week by the National Auto Dealers Association revealed that, at that time, less than 6% of CARS deals had been repaid by the government, but Friday the U.S. Department of Transportation reported about 17% had been repaid, accounting for about $500 million of the $2.87 billion allocated to the program.
So basically, to sum it up, the feds currently have yet to shell out about ninety five percent of the money they promised in clunker deals. Essentially, they’ve asked for a massive interest-free loan from car dealers, and they’re not being very prompt about their payment. This doesn’t bode well for car dealers, who’ve already been stretched to their limit and many of which closed for good following the Chrysler reorg.
Hopefully the Feds will pay up soon…otherwise, all our cars will be used cars.
Or imports….
No tags for this post.
1 user responded in this post
Dealers will eventually get paid their “clunker money”. Businesses like auto repair shops, parts stores and car donation charities that lost money because of cash for clunkers will not recoup their losses.