New York Dealers Pull Out of Cash for Clunkers Program, Claim they Can Not Afford the Rebates

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cash-for-clunkersA 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┬ádeals 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.

{NY Newsday/Matzav.com Newscenter}

2 COMMENTS

  1. 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.

    Wait and see how Obama’s Health Insurance Plan run by the government will reimburse hospitals and doctors for their services. They can’t even run a simple rebate program.

  2. The reason for the lag in reimbursements is that the demand has been so phenomenal, the gov’t didn’t have enough personnel assigned to handle the program.
    By the way, there’s nothing simple about a rebate program.

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