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Topic: NY dealers pull out of clunkers program
raiderfan_32's photo
Wed 08/19/09 10:55 AM


NEW YORK (AP) - A New York dealership group says hundreds of its members have left the Cash for Clunkers program, citing delays in getting reimbursed by the government.

The president of the Greater New York Automobile Dealers Association says about half its 425 members have stopped offering rebates from the program because they can no longer afford them.

Mark Schienberg says the group's dealers have been repaid for only about 2 percent of the clunkers deals they've made, leaving many short on cash.

The program offers up to $4,500 to shoppers who trade in gas guzzlers for a more fuel-efficient vehicle. Dealers pay the rebates out of pocket then must wait to be reimbursed by the government, but administrative snags have created a bottleneck in unpaid claims.


http://www.breitbart.com/article.php?id=D9A63DK01&show_article=1

Only 2% of the deals have been refunded to the dealers by the gov't.

And these clowns want us to let them run the healthcare industry?? This administration can't even run a used car lot!

no photo
Wed 08/19/09 10:57 AM
perhaps, their papers were not in order.....

no photo
Wed 08/19/09 11:00 AM



NEW YORK (AP) - A New York dealership group says hundreds of its members have left the Cash for Clunkers program, citing delays in getting reimbursed by the government.

The president of the Greater New York Automobile Dealers Association says about half its 425 members have stopped offering rebates from the program because they can no longer afford them.

Mark Schienberg says the group's dealers have been repaid for only about 2 percent of the clunkers deals they've made, leaving many short on cash.

The program offers up to $4,500 to shoppers who trade in gas guzzlers for a more fuel-efficient vehicle. Dealers pay the rebates out of pocket then must wait to be reimbursed by the government, but administrative snags have created a bottleneck in unpaid claims.


http://www.breitbart.com/article.php?id=D9A63DK01&show_article=1

Only 2% of the deals have been refunded to the dealers by the gov't.

And these clowns want us to let them run the healthcare industry?? This administration can't even run a used car lot!


You got that right! Good post! drinks

franshade's photo
Wed 08/19/09 11:01 AM
you mean the government doesn't pay on time shocked laugh

Winx's photo
Wed 08/19/09 11:02 AM
Edited by Winx on Wed 08/19/09 11:03 AM
"At many dealerships, in fact, the biggest problem is the quickly shrinking inventory. Rick Collins Toyota Scion in Sioux City, Iowa, normally would have some 120 new cars on the lot. Today, there are about 15."

"Carmakers are also struggling to keep up. General Motors, for example, said it is boosting production by building an additional 60,000 vehicles before the end of the year. But it's not clear whether the additional cars will arrive quickly enough."

http://www.npr.org/templates/story/story.php?storyId=112019854



willing2's photo
Wed 08/19/09 11:03 AM
BHO told them the checks in th' mail.

tanyaann's photo
Wed 08/19/09 11:05 AM
As already stated, the dealership might not have their stuff in order!

I just recently purchased a used car and the dealership did the title work! They messed up my address for DMV and I never received the title. When I called DMV to find out what happened, they state that it was mailed to a different address. I had to go into the office and wait forever for them just to change it in the system and request another one to be sent.

(granted the gov isn't always efficent, but don't put it on all them)

willing2's photo
Wed 08/19/09 11:08 AM
Mark Schienberg says the group's dealers have been repaid for only about 2 percent of the clunkers deals they've made, leaving many short on cash.

Got a feeling those dealers are feeling a bit screwed.

raiderfan_32's photo
Wed 08/19/09 11:09 AM

"At many dealerships, in fact, the biggest problem is the quickly shrinking inventory. Rick Collins Toyota Scion in Sioux City, Iowa, normally would have some 120 new cars on the lot. Today, there are about 15."

"Carmakers are also struggling to keep up. General Motors, for example, said it is boosting production by building an additional 60,000 vehicles before the end of the year. But it's not clear whether the additional cars will arrive quickly enough."

http://www.npr.org/templates/story/story.php?storyId=112019854



How intellectually honest of you to leave out the paragraphs between the two snipets you cherry picked from that article..

I'll post it in it's original context, just for the record..

A Welcome Problem: Shrinking Inventory

One factor that appears to be making a difference is that the incentive program is from the government rather than an automaker or a dealer. "That in itself lends a bit of legitimacy for people who might have been skeptical beforehand," Caldwell says.

She adds that some dealerships are running advertisements that tout government rebates without offering details, which may drive extra customers into their showrooms.

At many dealerships, in fact, the biggest problem is the quickly shrinking inventory. Rick Collins Toyota Scion in Sioux City, Iowa, normally would have some 120 new cars on the lot. Today, there are about 15.

"Relief is coming, but I just hope it's soon," says Kirk Kneifl, the general sales manager at the dealership. "Put it this way: We're not running new car ads in the paper for the rest of the month."

Another frustration comes from delays in the government's processing of reimbursement claims. "Dealers just need the government to speed up the payment process for the clunker deals," Taylor says.

Carmakers are also struggling to keep up. General Motors, for example, said it is boosting production by building an additional 60,000 vehicles before the end of the year. But it's not clear whether the additional cars will arrive quickly enough.

"It's a Catch-22, where the auto dealers may need more supply now, but by the time it comes, it may be too late," Caldwell says. "In late fall, when auto sales slow down, the manufacturers may find themselves in a position where they have to offer large incentives again."

Winx's photo
Wed 08/19/09 11:12 AM
Edited by Winx on Wed 08/19/09 11:14 AM


"At many dealerships, in fact, the biggest problem is the quickly shrinking inventory. Rick Collins Toyota Scion in Sioux City, Iowa, normally would have some 120 new cars on the lot. Today, there are about 15."

"Carmakers are also struggling to keep up. General Motors, for example, said it is boosting production by building an additional 60,000 vehicles before the end of the year. But it's not clear whether the additional cars will arrive quickly enough."

http://www.npr.org/templates/story/story.php?storyId=112019854



How intellectually honest of you to leave out the paragraphs between the two snipets you cherry picked from that article..

I'll post it in it's original context, just for the record..

A Welcome Problem: Shrinking Inventory

One factor that appears to be making a difference is that the incentive program is from the government rather than an automaker or a dealer. "That in itself lends a bit of legitimacy for people who might have been skeptical beforehand," Caldwell says.

She adds that some dealerships are running advertisements that tout government rebates without offering details, which may drive extra customers into their showrooms.

At many dealerships, in fact, the biggest problem is the quickly shrinking inventory. Rick Collins Toyota Scion in Sioux City, Iowa, normally would have some 120 new cars on the lot. Today, there are about 15.

"Relief is coming, but I just hope it's soon," says Kirk Kneifl, the general sales manager at the dealership. "Put it this way: We're not running new car ads in the paper for the rest of the month."

Another frustration comes from delays in the government's processing of reimbursement claims. "Dealers just need the government to speed up the payment process for the clunker deals," Taylor says.

Carmakers are also struggling to keep up. General Motors, for example, said it is boosting production by building an additional 60,000 vehicles before the end of the year. But it's not clear whether the additional cars will arrive quickly enough.

"It's a Catch-22, where the auto dealers may need more supply now, but by the time it comes, it may be too late," Caldwell says. "In late fall, when auto sales slow down, the manufacturers may find themselves in a position where they have to offer large incentives again."



You already mentioned that part. I didn't want to repeat what you said. I was adding information. So..yes, it was honest of me. I put the link there too.




Winx's photo
Wed 08/19/09 11:13 AM
So...here's the whole article.

For Car Dealers, Cash For Clunkers Rescues Summer

by Kevin Whitelaw
General sales manager at Williamson Cadillac-Hummer in Miami


Benito "Beny" Ledesma Jr., general sales manager at the Williamson Cadillac-Hummer in Miami, walks past a Cadillac SRX 6-cylinder (right) Aug. 13. The dealership has sold three of these models, has deals for two more, and hopes to sell 14 others through the government's Cash for Clunkers rebate program.
General sales manager at Williamson Cadillac-Hummer in Miami

Benito "Beny" Ledesma Jr., general sales manager at the Williamson Cadillac-Hummer in Miami, walks past a Cadillac SRX 6-cylinder (right) Aug. 13. The dealership has sold three of these models, has deals for two more, and hopes to sell 14 others through the government's Cash for Clunkers rebate program.


August 19, 2009

The government's Cash for Clunkers program has rescued many auto dealerships from an otherwise moribund summer, creating what one dealer calls "a whole buying atmosphere."

"More people are buying, so it seems like the thing to do," says John Guido Jr., the general sales manager at Arlington Heights Ford. At his dealership in the Chicago suburbs, the program has nearly doubled the number of potential buyers coming into the showroom on an average Saturday.

The sales boom has even extended beyond the cars sold directly through the government-sponsored incentive program, which offers up to $4,500 for trading in older, gas-guzzling vehicles.

"There appears to be significant trickle-down effects for dealers from the Cash for Clunkers program," says Paul Taylor, the chief economist for NADA, the National Automobile Dealers Association. "The program has increased traffic even from those who don't qualify."

More Room To Negotiate

Guido says several potential buyers have brought in cars that are just outside the program's gas mileage restriction of 18 miles per gallon or worse. But these days, many dealers are able to offer better trade-in deals because used car prices are rising.

"There's a shortage of used cars," Taylor says. "If you're selling 6.5 million fewer new cars, you've got over 4 million fewer trades coming in, because 60 percent of new car deals usually involve trades."

For Guido, this means more room to negotiate. "There is some advantage in having a clunker right now, because that used car market has shrunk," he says. "As long as it's a decent car, we're willing to put in more than the Blue Book value."

Overall, the bulk of the sales at Guido's Illinois dealership are coming directly through the government's incentive program, known as the Car Allowance Rebate System. Between July 24 and early this week, he sold 134 vehicles, 100 of which qualified for stipends from the clunkers program.

"It has been an enormous opportunity for car dealers who had been struggling all along with little or no showroom traffic all year," says Jessica Caldwell, an industry analyst for Edmunds.com, a leading auto information site. "They've been waiting for something like this all year, and now they finally have something to capitalize on."

A Welcome Problem: Shrinking Inventory

One factor that appears to be making a difference is that the incentive program is from the government rather than an automaker or a dealer. "That in itself lends a bit of legitimacy for people who might have been skeptical beforehand," Caldwell says.

She adds that some dealerships are running advertisements that tout government rebates without offering details, which may drive extra customers into their showrooms.

At many dealerships, in fact, the biggest problem is the quickly shrinking inventory. Rick Collins Toyota Scion in Sioux City, Iowa, normally would have some 120 new cars on the lot. Today, there are about 15.

"Relief is coming, but I just hope it's soon," says Kirk Kneifl, the general sales manager at the dealership. "Put it this way: We're not running new car ads in the paper for the rest of the month."

Another frustration comes from delays in the government's processing of reimbursement claims. "Dealers just need the government to speed up the payment process for the clunker deals," Taylor says.

Carmakers are also struggling to keep up. General Motors, for example, said it is boosting production by building an additional 60,000 vehicles before the end of the year. But it's not clear whether the additional cars will arrive quickly enough.

"It's a Catch-22, where the auto dealers may need more supply now, but by the time it comes, it may be too late," Caldwell says. "In late fall, when auto sales slow down, the manufacturers may find themselves in a position where they have to offer large incentives again."

Sales were so intense during the program's first week, it ran through nearly the full $1 billion initially allocated by Congress. Lawmakers quickly added $2 billion more, although the pace of sales has cooled slightly.

"I don't think it's going to go quite as fast as everyone thought," Caldwell says. "But it still seems like it has legs, at least in the short term."

raiderfan_32's photo
Wed 08/19/09 11:14 AM

perhaps, their papers were not in order.....


are you alleging that 98% of the paperwork wasn't in order? and but for screwed up paperwork, all these deals would have been reimbursed?

you've got to be kidding..

mistakes happen, yes. to err is human but I have to doubt that professional car dealers made clerical errors at 98% clip, especially if each one cost them $4500..

come on, you can do better than that..

raiderfan_32's photo
Wed 08/19/09 11:30 AM
btw, I wonder where the shortage of used cars originates..

I wonder if there's any relation to the fact that trade-ins under the clunker program are, by law, completely disabled, engines forced to seize and thrown on the scrap heap.

willing2's photo
Wed 08/19/09 01:18 PM
Wonder how much BHO tends to make off the scrap metal.
Here, it goes for a penny a pound.
Who knows how much it sells for like in Japan.

Winx's photo
Wed 08/19/09 07:56 PM

Wonder how much BHO tends to make off the scrap metal.
Here, it goes for a penny a pound.
Who knows how much it sells for like in Japan.


Do you really believe that - Obama making money off of scrap metal?slaphead

no photo
Wed 08/19/09 08:09 PM
No..I am saying (in my best German accent)

"Let me see your papers!"



perhaps, their papers were not in order.....


are you alleging that 98% of the paperwork wasn't in order? and but for screwed up paperwork, all these deals would have been reimbursed?

you've got to be kidding..

mistakes happen, yes. to err is human but I have to doubt that professional car dealers made clerical errors at 98% clip, especially if each one cost them $4500..

come on, you can do better than that..


AndrewAV's photo
Wed 08/19/09 09:47 PM

"At many dealerships, in fact, the biggest problem is the quickly shrinking inventory. Rick Collins Toyota Scion in Sioux City, Iowa, normally would have some 120 new cars on the lot. Today, there are about 15."

"Carmakers are also struggling to keep up. General Motors, for example, said it is boosting production by building an additional 60,000 vehicles before the end of the year. But it's not clear whether the additional cars will arrive quickly enough."

http://www.npr.org/templates/story/story.php?storyId=112019854





The irony behind this is what are the automakers going to do with all the extra (UAW) assembly line workers when the demand falls on its face in another month?

Bet that's going to cost them.

TJN's photo
Thu 08/20/09 03:58 AM
Not only used car dealers, but also charities that take cars are feeling it.

In New London, John Solberg worries about the impact "cash for clunkers" will have on the Rawhide Boys Ranch. In Milwaukee, Robert Miranda worries about how the program will affect social service agency Esperanza Unida.

The organizations each use donated vehicles to raise funds for their programs, and they are concerned that cars traded in as clunkers will end up in scrap yards instead of their facilities.

They are not alone, as charitable organizations across the country are carefully watching what impact the program will have on used-vehicle donations that fund major parts of their operations.

"It just seems unprecedented that we are taking things that are running perfectly and destroying them," said Solberg, executive director of Rawhide. "There really are people who depend on those cars."

Officially known as the Car Allowance Rebate System, CARS, the program offers consumers taxpayer-funded rebates of $3,500 or $4,500 for trading in older vehicles for new, more fuel-efficient models. The program has generated more than 435,000 vehicle sales and helped the U.S. auto industry emerge - at least partially -from its worst downturn ever.

Cars that are traded under the program must be destroyed.

Rawhide handles about 2,500 donated vehicles a year, Solberg said.

The organization accepts the vehicle donations and some of the at-risk boys enrolled in its program work to repair them. Once repairs are made, the vehicles are then sold at auction.

"It's not only a revenue loss for us, but it also takes away the work experience," for the boys at the facility, Solberg said.

While it's too soon to know how many donations might eventually be lost, "We know there are donations we are losing," Solberg said.

Donors are eligible for a federal tax deduction.

The auto repair program at Esperanza Unida in Milwaukee provides needy central city residents the opportunity to train in auto mechanics and also provides some city residents an affordable ride to work, Miranda said.

"We have seen a drop-off in quality used car donations," he said. "I'm keeping a close eye on it."

The agency accepts vehicle donations and makes them available based on an individual's need. It also has a Wisconsin car dealer's license and sells cars on its lot near S. 13th and W. National Ave. Proceeds from those sales fund the auto mechanics training program, Miranda said.

"We could definitely use those cars," he said of the vehicles being destroyed under the clunkers program.

He also said he doesn't see the clunkers program as an intentional snub of individuals living in poverty. He recognizes the goal of getting gas guzzlers off the road.

"That's important, keeping our air clean," Miranda said. "But it's also important to us that poor people have a way to get to work.

"We have students who have the opportunity to work at a job outside the city but they just can't get there," because of transportation issues, Miranda added.

Many charity operators and economic observers say it's too soon to determine how the clunkers program will ultimately affect giving.

"It is logical that many charities would be hurt," said John List, an economics professor at the University of Chicago who has studied fund raising. "But it's intuition right now. All the experts are guessing."

Rick Watkins, who heads Charitable Auto Resources, a San Diego company that manages auto donations for about 800 charities, said he's not only concerned his clients will receive fewer cars, but he's worried that the cars they will receive will be in worse shape and fetch less money.

At Esperanza Unida, those type vehicles are called clankers, Miranda said. "They're worse than clunkers."

Usable parts are saved for use in the auto training program. What's left is scrapped, he said.

The National Kidney Foundation, which has a local office in Brookfield, receives about 30,000 vehicle donations a year nationwide, accounting for 19% of the charity's total revenue or $13 million in research, early detection, patient services and education.

Chad Iseman, director of the Kidney Cars program for the New York-based foundation, estimates a 10% to 15% decline in vehicle donations because of federal rebates.

"It is significantly impacting us," Iseman said. "We're just waiting for it to run its course."

Like others, he said he hopes people who don't qualify for the clunkers program will consider donating their cars.

Some donation program operators say the clunkers program's popularity and publicity have raised awareness about car donation in general and could eventually turn out to be beneficial.

The Associated Press contributed to this report.

http://www.jsonline.com/business/53747372.html

arcadefan's photo
Thu 08/20/09 05:50 AM
it is happen across the U.S. not just in NYC dealers are pulling out this program..

KC there dealers are pulling out of the program as well that is my bit from the midwest for ya folks

Winx's photo
Thu 08/20/09 06:40 AM

it is happen across the U.S. not just in NYC dealers are pulling out this program..

KC there dealers are pulling out of the program as well that is my bit from the midwest for ya folks


Arcadefan,

It's still good in St. Louis.

"Bommarito, whose group has 15 franchises at six different locations, said the cash-for-clunker program is hitting the target. During a six-day period, Bommarito dealerships processed 250 deals under the program — including those that were in the pipeline before the program's formal launching.

His showrooms have seen a 40 percent increase in traffic."

http://www.stltoday.com/stltoday/business/stories.nsf/story/8AB5481AF96386D5862576050005398B?OpenDocument

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