Clunkers Program May End Up Screwing Over the Dealerships That Is Supposed To Help

At Downtown Ford Lincoln Mercury in Canton, Ohio, they love it, too. Lots of cash deals; few cases of bad credit; gross profit per vehicle up "a couple of hundred dollars."

At the Grand Blanc-based Serra Automotive Group, with 38 franchises at 21 locations in six states, the boss appreciates that the controversial federal incentive program has consumers thinking cars after a year of mostly doing anything but.

Sales are booming. Inventory is thin. Customers are swarming showrooms, hungry for sweet, stackable deals (cash back from the automakers plus a cash-for-clunkers rebate of as much as $4,500) that can cut the price of some eligible vehicles in half.

All good, except for one thing: Many dealers still aren't getting paid. The bureaucratic maze is ridiculous: 156 pages of regulations governing 13 pages of forms are mated to a computer system that mostly is failing to accommodate demand from dealers across the country.
 

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Joe_Limon - 8/25/2009 3:10:31 PM

+6 Boost

If they don't use up all the money they will be criticized, if they use up to much money they will be criticized, and if they get it down to the penny they will be criticized for using to many people and thus inflating the project beyond the said amount. This article is pointless and condescending.

sdcarguy - 8/25/2009 3:14:10 PM

+5 Boost

A nice problem to have. The alternative?

bfghemicuda - 8/26/2009 10:25:00 PM

-1 Boost

The problem with socialism is you eventually run out of other peoples money.

HSCenterconsole - 8/25/2009 3:18:57 PM

-5 Boost

And the same people that executed this program now want to control our healthcare. Wonderful...

PerformanceGuy - 8/25/2009 3:36:49 PM

+8 Boost

I am sure all those American factory workers that still have a job due to this are happy about this program!! I am glad we finally have some real leadership in our government, especially after the last 8 years of a three ring circus.

HSCenterconsole - 8/25/2009 4:30:31 PM

+1 Boost

Wasn't Toyota the largest seller in the cash for clunker program? While it seems like a good idea, the economics behind the program are faulty.

First, the program gave an artificial boost to cars sales over the summer. Sales will return to their pre-cash for clunker slump now that the program has ended. The economy isn't rapidly improving.

Second, the billions spent on this program have to come from somewhere (the old economic principle of "no free lunch"). In this case, that "somewhere" is other taxpayers or increased debt for our grandchildren. The logic is similiar to a person taking money from one of their bank accounts and moving it to another and thinking they are getting richer. This program created no new wealth -- it merely moved it around.

Joe_Limon - 8/25/2009 5:28:59 PM

+4 Boost

No, Toyota was far behind on the list of companies that benefited the most. The first list that came out broke vehicles down by option package, so that different engine options were considered different models. Have a read of this article.

http://www.autospies.com/news/At-GM-Dreams-of-an-Electric-Cadillac-Converj-47256/

HSCenterconsole - 8/26/2009 8:14:12 AM

0 Boost

1UAW, yet again you lack a complete understanding of economics (and grammar as well). The program was a transfer of funds. There will be no growth from cash for clunkers, only a brief and artificial surge in car sales, followed by more dismal sales this fall. The U.S. car makers need policies that generate wealth and allow the economy to grow over the long run.

Your attack on the rich is also misguided. The top 1% of earners in the U.S. pay 40% of all income taxes while the top 5% of earners pay 60% of all income taxes.

HSCenterconsole - 8/27/2009 8:03:07 AM

+1 Boost

Joe, you should check out this article from Reuters:
"Japanese and South Korean automakers registered the biggest market share gains in the U.S. government's "cash for clunkers" program that ended this week with bankruptcy related inventory shortages hurting General Motors Co GM.UL and Chrysler."

http://www.reuters.com/article/GCA-Autos/idUSTRE57P5C220090826

Badgewhore, read my statement. The top 5% of earners pays 60% of all income taxes. That means the 40% rest of the income tax comes somewhere from 95% of the country.

Joe_Limon - 8/27/2009 9:22:41 AM

+1 Boost

To be honest, I don't know what biased source to believe anymore, hasn't GM topped Toyota in sales as of recently?

delan - 8/25/2009 11:05:46 PM

+3 Boost

Yawn...

LexSucks - 8/26/2009 3:00:54 PM

+1 Boost

Another Anti Obama post by Agent009. Why Am I not surprised?

Agent009, Do us all a favor and learn how to accept democracy.

bfghemicuda - 8/26/2009 10:33:30 PM

0 Boost

This is not democracy its a dictatorship!. You liberals make me laugh. Everyone is to be tolerant but you. And NO we wont shut and accept what you think is a democracy. And im still laughing.

LexSucks - 8/27/2009 4:14:58 PM

+1 Boost

"And NO we wont shut and accept what you think is a democracy. "

- ROTFLMAO. It isn't what I think is democracy, it is indeed actual democracy. He was elected in a near landslide by the people. Or are one of those folks who think Acorn got him elected? LOL!

The fact that your party didn't win doesn't mean that we don't have a democratic process.

freshseth83 - 8/26/2009 3:15:17 PM

+1 Boost

for once i agree with you lexsucks. I guess he would rather see Sarah Palin and John McLame in office. Maybe they wouldn't have done the cash for clunkers, Maybe they wouldn't have the healthcare reform, no probably not. We would still be deeper into the recession and they'd be getting paid out the ass for their dismal efforts to right the country when in reality it's digging us a deeper hole. If you look at the stock markets they have gained over 50% since Obama has taken office. Sorry but it doesn't look like the country is still hurting the way it was. If only we could fix the unemployment! Oh wait, Cash for clunkers added jobs! Wow, what a surprise!

nguyenvuminh - 8/27/2009 12:10:00 AM

+1 Boost

009, only 3+ more years to go with Obama. ENJOY.

PerformanceGuy - 8/27/2009 1:19:54 PM

0 Boost

Might want to correct that to 7 more years.

LexSucks - 8/27/2009 4:11:23 PM

0 Boost

3 More years? LOL! I guess you would rather have a party in charge that takes its Talking points from Rush Limbaugh? Never Going to Happen.

The dems aren't perfect but the republicans are worse (read: out of touch). The southern Good Ol' boy mentality that the Rebulican party seems to be embracing is going to be thier downfall.