Another bureaucratic mess!
I am a rep and many of my clients are new car dealerships. The new federal “Cash for Clunkers” is a nightmare for the dealers. Each dealer has 2 notebooks containing over 250 pages of procedures. The reimbursement is to the dealer not the consumer. The sale is recorded on line and scanned documents (8) are submitted for review. Dealers are waiting 5 days to receive confirmation that they will be receiving payment. If there is any error the entire transaction must be resubmitted, beginning the processes all over again. If the submission is approved payment will be made to the dealer within 2 weeks.
The dealer is required to submit a document at submission that they have rendered the clunkers engine totally un usable. This is done by running a metal cement concoction through the intake. The engine is run until seizure occurs.
One large problem with this procedure. If for any reason the dealer’s claim is rejected they are stuck with a vehicle with a salvage value of nothing. But the customer has been credited in real dollars of much more.
Because of these issues dealers are having a bailment agreement signed by the customer making them responsible for the allowance and including the possible return of the new vehicle. The dealers are also not destroying the engine until they have received approval of their claim.
Bottom line, another cumbersome poorly managed government program. The miniscule number of new cars that will be sold will do little to resuscitate the car industry. The few old “clunkers” that will be off the road will not equal the emissions of Al Gore’s jet.
And some of you want the government to manage your health care?
Good luck!
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