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Clunker program closing?

Posted by Bill Sluben on August 20, 2009

It seems that the bureaucracy and red tape of the government is holding up a significant number of cash for clunker reimbursements to dealers…and dealers are not happy about it.  For dealers, this timely reimbursement represents an infusion to their cash flow.  It is also a return on a hefty promise made by the Federal Government when they rolled out the program.

The problem is that no one (dealers, industry analysts, Department of Transportation officials) knows exactly how mush of the $3 billion is left, if any at all.  And that is making dealers squeamish to say the least. 

Questions abound from dealers at this point – When will we get paid?  How many of the claims will be reimbursed?  And should I still promote and honor the cash for clunker program at my dealership?

GM LogoGM, for their part, is taking a proactive stance and approach by fronting the money to dealers.  And Ray LaHood, Transportation Secretary, has said that an “enormous number of people on the task of processing the paperwork” and that “there will be no car dealer that won’t be reimbursed.”

The key to the continued adoption and support of the program will be how quicklythe reimbursement arrives to the dealers…and ultimately how much of the amount owed is paid.

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