More News On Clunkers

It seems that the Federal government is abysmal at actually administering their “Cash For Clunkers” program. Dealers have been actively promoting the popular program, but to date very few claims have been paid. In fact, only 2% of the claims submitted so far have been paid by the government.

The federal government has only reimbursed auto dealers for 2 percent of the claims they've submitted through the popular "cash for clunkers" program, a Pennsylvania congressman said, calling on the Obama administration to help speed up the process.

Rep. Joe Sestak, D-Pa., called for "immediate action" to address the problem in a statement Sunday, after writing a letter to President Obama Saturday expressing his concerns.

In the letter, Sestak said only 2 percent of claims have been paid and that four of every five applications have been "rejected for minor oversight."

In recent days, auto dealers across the country have been complaining that the reimbursement payments are slow to process. And they said some of their applications were being rejected because of apparent procedural issues. The statistics Sestak cited suggest those complaints are not based on isolated incidents.

Many of these dealers sold cars for THOUSANDS less than they would normally have gotten, and so far that money is nor forthcoming as promised. This is leading many of them to contemplate leaving the program.

A growing number of auto dealers say the process of getting paid under the government's "cash for clunkers" plan increasingly resembles some of the wrecks accumulating on their lots as part of the program.

The slow payments coming from the federal government are reinforcing the paradoxical nature of the program for dealers: It has generated the most showroom traffic they have had in months while at the same time heaping unease, frustration and worry onto the industry's worst-ever downturn.

As of the close of business Friday, there was talk in the industry that some dealers are considering pulling out of the clunkers program altogether.

"A number of dealers have floated $100,000 to upwards of $1 million or more" on the clunkers program, said Bill Sepic, president of the Wisconsin Automobile & Truck Dealers Association.

Dealers say they want to see at least some sign that they will be able to recoup that money. Still others need the money to pay bills and meet payroll.

Now let me get this straight… this is a SUCCESSFUL program? And this is who we want to turn over control of our health care to, the same people who can’t even handle a simple rebate program for auto dealers? Private companies handle it fine every day, but not so with government.

Wake up, people… is this a taste of the kind of ineptitude we’ll see when they start exercising more control over our health care?