Cash for Clunkers or Bait and Switch?
(Thank you to carstereis for the heads up on this)
Ok wait, so Cash for Clunkers runs out of cash in 4 days of operation and now it looks as though it was really just a sad attempt to sucker dealers into rendering old cars obsolete? Call me crazy but that sounds like one hell of a bait and switch to me. (see Cash for Clunkers Runs out of Cash - in SIX Days if you need to catch up)
Via the Ex Car Salesman:
I've spoken with several dealers concerning the cash for clunkers program and this video sums up the "cash for clunkers" suspension in great detail.
It is true the program is successful and will use allotted funds. But the situation is more sophisticated that that.
First, because of the popularity, there is a huge backlog of paperwork. The 20-page application requires data from various sources and in many cases takes days to complete. Dealers continue to sell cars while they wait for all the information required. Of of the many hold-ups is the fact dealers must disable the 'clunker' with two quarts of a special sodium silicate solution before before the car crushers can give them a required signature. However, many dealerships have run out of this solution or have not received it. If dealers continue to advance people the CARS credit, on faith the government will refund them for destroying a car, their cash flow will soon be depleted.
Second, the CARS dealer website -- where dealerships submit applications -- cannot handle the traffic. Dealers continuously report website crashes rendering them unable to submit their application. This increases the amount of time dealers must wait before they receive their rebate check -- depleting cash flow.
Third, worry is building in many dealerships because many applications for the rebate are being denied after the car deal. Some on this blog have expressed outraged after dealers have called them back demanding the customer make up for the denied CARS rebate (up to $4,500.00) or else they would have to return the car immediately. Some have had their trade-in cars already destroyed.
So perhaps this "stimulative" effort wasn't nearly as successful as TPTB would like us to believe, unless of course "success" is based upon the number of suckers born in the minutes between the announcement of the program and its exhausting of funds.
Can anyone confirm this?