Car Dealerships Killed By Congress And Obama
Although the White House is providing reassurances that dealers won’t lose money, that could happen based on the cash for clunkers rules. Dealers are required to give qualifying buyers the $3,500 or $4,500 discounts and then apply to the government for reimbursement. Dealers who apply for repayment after the funding runs out will not be reimbursed, according to the program’s rules.
“There’s a big concern among dealers that this thing may run out of money and they don’t want to be stuck holding the bag,” said Michelle Krebs, senior editor of AutoObserver.com.
To make matters worse, dealers are required to permanently disable the engines of clunker trade-ins before they can apply to the government for repayment, Krebs said. If payment is denied, the dealer is out the advanced discount and has a car with a ruined engine that can’t be resold.
via Advice Goddess Blog.
So Cash For Clunkers ran out of money, just what the dealers feared. However, the dealers still have to give the rebates even though they won’t be reimbursed. So they’re looking at the choice of killing the trade in to MAYBE get reimbursed by tax dollars somewhere down the line, or accept they’ll get no reimbursement and simply resell the cars for which they HAVE to give a rebate. So the fuel inefficient cars stay on the road (oh eek, the horror, eek, zzzzzz), and dealers will probably now avoid such cars like the plague because they won’t want the hassle of this non-paying program and the paperwork that goes with it.
So Congress has killed dealerships and probably made trading in millions of cars almost impossible. Well done, you fucking morons. Your “green” ambitions just stomped another mudhole in our economy. Assholes.

