CARS money still not flowing...

[LTC8K6]

Money still not coming in to dealers for CARS sales. This is pretty strange, imo. This was supposed to be a simple plan with transactions completed by law in 10 days or less.


http://cbs2chicago.com/local/C...lunkers.2.1155470.html

"Out of 142 deals they owe us for, we've gotten paid on seven," Lou Tornabeni of Ettleson Hyundai said.

"We had 102 cash for clunkers," Carm Scarpace of Westfield Ford said. "We've been paid for one."

With each Cash for Clunkers deal worth between $3,500 and $4,500, many dealerships are anxiously awaiting their government payday.

Some, like Advantage Chevrolet, which sold cars up until the last minute, have more than half a million dollars on the line.

"It was chaotic towards the end," Jason Roberts said.

Roberts says his dealership sold 142 cars under the program -- for a total of about $568,000 in government rebates. So far, the dealership has only been paid about $68,000 for about 17 of the deals, which means Uncle Sam still owes them roughly $500,000.

 

[LTC8K6]

More dealers getting angry, and rightfully so, imo.

http://www.keloland.com/NewsDetail6162.cfm?Id=89419

During the month long program, Billion Automotive sold close to a thousand vehicles but has only been reimbursed for 272 of them. Vern Eide sold over 200 cars and has only been paid for 27 of them, and that's fueling lots of concerns in the auto industry.

Billion Automotive cashed in during Cash for Clunkers, but owner Dave Billion is still waiting for the rest of his money from the government run program, $3.2 million.

"I wonder how long they'd wait if I owed them $3.2 million. I think they'd be at my door or at least my banker's door," Billion said.

Even though Billion is beginning to get some of his reimbursement money, he's still concerned because he says there doesn't seem to be any rhyme or reason to the program.

When Cash for Clunkers was first announced, dealers were supposed to be reimbursed within 10 days of a sale. Billion says that hasn't happened.

"The program started in July and we haven't gotten paid for cars we sold back then, but then on the other hand we got paid for a car we sold last week. They don't have an accurate format. It's not like they're taking the first deals that were submitted and working those. I don't know how they're doing it, no idea. I know it's very random" Billion said.

Plus, he's had problems getting some vehicles qualified.

"We had a situation where we had a submission, they rejected it for multiple reasons. We didn't see anything wrong with it, so we resubmitted it. They rejected, we resubmitted it. They rejected it, seven times and finally they paid it, and we never changed a single thing on it," Billion said.

 

[thedarkwolf]

That is the government
gotta love it

 

[HannibalX]

Poor stealerships getting the run-around? Cry me a river.

 

[LTC8K6]

Originally posted by: iFX
Poor stealerships getting the run-around? Cry me a river.

Well, okay.

But not really the point. 😀

 

[Toastedlightly]

I wonder how this effects the finances of the dealers themselves.

 

[Engineer]

Originally posted by: thedarkwolf
That is the government
gotta love it

LOL, like I said earlier, the only issue was the mention of 10 days to begin with. Per CNBC, it was stated that the fine prints states 10 days from the time the paperwork is "finalized". Also, the terms of payment in the private sector range from Net 30 to Net 60 with many actually paying as late as Net 90 to Net 120. Once the government gets to the level that many private companies get to, start complaining! 😀

 

[Vette73]

Originally posted by: Engineer

Originally posted by: thedarkwolf
That is the government
gotta love it

LOL, like I said earlier, the only issue was the mention of 10 days to begin with. Per CNBC, it was stated that the fine prints states 10 days from the time the paperwork is "finalized". Also, the terms of payment in the private sector range from Net 30 to Net 60 with many actually paying as late as Net 90 to Net 120. Once the government gets to the level that many private companies get to, start complaining! 😀

:thumbsup:

 

[LTC8K6]

Originally posted by: Engineer

Originally posted by: thedarkwolf
That is the government
gotta love it

LOL, like I said earlier, the only issue was the mention of 10 days to begin with. Per CNBC, it was stated that the fine prints states 10 days from the time the paperwork is "finalized". Also, the terms of payment in the private sector range from Net 30 to Net 60 with many actually paying as late as Net 90 to Net 120. Once the government gets to the level that many private companies get to, start complaining! 😀

And agin I will inform you that you CNBC is incorrect. The law is pretty clear. No longer than 10 days after submission of information supporting the transaction.


(2)
establish procedures for the reimbursement of dealers participating in the Program to be made through electronic transfer of funds for the amount of the vouchers as soon as practicable but no longer than 10 days after the submission of information supporting the eligible transaction, as deemed appropriate by the Secretary;

http://www.cars.gov/files/official-information/law.pdf

 

[LTC8K6]

Don't forget that the law originally said the dealer had to destroy the clunker's engine before submitting the paperwork.

Yes, they were actually stupid enough to write the law that way, so that if the deal did not go through, the car would already have been destroyed.

They had to amend the law to fix that stupid rule.

That's one reason why the law stipulates quick processing and payment.

 

[Engineer]

Originally posted by: LTC8K6

Originally posted by: Engineer

Originally posted by: thedarkwolf
That is the government
gotta love it

LOL, like I said earlier, the only issue was the mention of 10 days to begin with. Per CNBC, it was stated that the fine prints states 10 days from the time the paperwork is "finalized". Also, the terms of payment in the private sector range from Net 30 to Net 60 with many actually paying as late as Net 90 to Net 120. Once the government gets to the level that many private companies get to, start complaining! 😀

And agin I will inform you that you CNBC is incorrect. The law is pretty clear. No longer than 10 days after submission of information supporting the transaction.


(2)
establish procedures for the reimbursement of dealers participating in the Program to be made through electronic transfer of funds for the amount of the vouchers as soon as practicable but no longer than 10 days after the submission of information supporting the eligible transaction, as deemed appropriate by the Secretary;

http://www.cars.gov/files/official-information/law.pdf

There's your out right there! 😉

Like I said, there are many contracts for payments in the private sector that go well over the limit (I see it often, sometimes after a supplier cuts us off, lol), but a few days over the 10 day date isn't going to kill these guys. Nobody bitches about when the private sector goes over by much more than this, but the government goes over.....all hell breaks out.

The damn dealers better be thanking the government for the boost in sales and leave it at that (assuming they get paid within some reasonable time between 30 and 60 days IMO).

 

[LTC8K6]

The secretary would have to make any changes known, just as was done with the amendment.

Dealers don't have much to give thanks for with CARS as far as I can see. GM and Chrysler sales were down, and the short term blip will not be good for the dealers over all.

 

[Engineer]

Originally posted by: LTC8K6
The secretary would have to make any changes known, just as was done with the amendment.

Dealers don't have much to give thanks for with CARS as far as I can see. GM and Chrysler sales were down, and the short term blip will not be good for the dealers over all.

Autonation CEO reported (CNBC) that sales have returned to the same level that they were before CARS kicked in. The projected sales this year are now 10.5 million, up from the low estimate of 8.9 million with a going forward 12 million in 2010 and return to 13 to 15 million by 2012. I guess we will see.

Right now, the destruction rate of cars (wrecks, worn out, etc) is 13.5 million per year so at that pace, something has to give eventually. Either people will be giving up a 2nd or 3rd car or they will replace it at some point.

 

[Mide]

Do you know what's funny about this whole thing? It is taking forever for the Government to dish out the money to the car dealerships but it didn't take them much time at all to give away tons in bailout money to the banks.

 

[Engineer]

Originally posted by: Mide
Do you know what's funny about this whole thing? It is taking forever for the Government to dish out the money to the car dealerships but it didn't take them much time at all to give away tons in bailout money to the banks.

LOL! :laugh:

While what you say is true to an extent, it's not "forever" if it's just over 10 days or so. Still funny though! :laugh:

 

[woodie1]

Just read a news story in which the government says it plans on having the dealers paid by 30 Sep 2009. wth?

 

[bctbct]

Personally I am happy to see the gov't finally verifying info before handing out the cash.

 

[LTC8K6]

Originally posted by: Engineer

Originally posted by: Mide
Do you know what's funny about this whole thing? It is taking forever for the Government to dish out the money to the car dealerships but it didn't take them much time at all to give away tons in bailout money to the banks.

LOL! :laugh:

While what you say is true to an extent, it's not "forever" if it's just over 10 days or so. Still funny though! :laugh:

July is far from "just over 10 days"... 😀