Cash for Clunkers – One More Look

Posted by Larry Miller on August 20, 2009 under How | Be the First to Comment

After drawing hoards of buyers into dealer showrooms and helping these dealers pry open customers wallets, the Cash for Clunkers program shows the danger of businesses depending on a government that has little understanding of economics and none of business operations. Because of this, many of the 450 member of the Greater New York Automobile Dealers Association (GNYADA) which covers metro New York City, have decided to suspend their participation in the Cash for Clunkers program.

They cite the lengthy application process, up to several hours per vehicle aggravated by frequent computer glitches in the Department of Transportation system, combined with an astronomical rejection rate for minor errors and the lack of guidance to a workable correction process that would facilitate their payment. The dealers say they are not able to get timely acceptability answers about vehicle qualification. After all this, they can’t even speak to a live person for support without a several hour wait on the telephone.

As if this were not enough, the dealers have no way of knowing when the allotment of three billion dollars is gone. Anecdotal evidence tell us that in Maryland only two percent of the claims have been paid to participating dealers. It seems bureaucracies have no comprehension of cash flow needs or concern for the businessmen who have to make payrolls and keep the economy running. Read more of this article »