By Dave Matlow
To hear Westport car dealer Joe Postighone tell it today, the Obama administration’s “cash for clunkers” program ending Monday has been one big headache.
The showroom of New Country Toyota on Westport’s Post Road East today where the general sales manager said the “cash for clunkers” program has been a “nightmare.” (CLICK TO ENLARGE) Dave Matlow for WestportNow.com
“We stopped the program two weeks ago,” said Postighone, general sales manager of New Country Toyota on Post Road East.
“We had 15 deals – all processed, all approved, not delivered because we have not been paid (by the government) on any of them.”
Saying he was speaking for all the Toyota dealers in a 50-mile radius—about 20 dealers—Postighone said only one dealer has received reimbursement and that was on only one car.
“Some of the dealers have 50-60 cars sold (on the “cash for clunkers” deal), but no one has collected anything with the exception of that one.”
Joe Postighone (Toyota): “It’s been a nightmare.” Dave Matlow for WestportNow.com
He added, “You can’t imagine how much time has been wasted on this program – it’s been a nightmare.
“Customers are coming in all day long to buy (on the “clunkers” program), and they’re mad at us because we told them we won’t take a clunker deal.”
Down the road, Mike Abrahams, general manger of Honda of Westport, was not as negative.
“It’s a good idea,” he said. “But it’s very poorly executed.”
Mike Abrahams (Honda): “Good idea…poorly executed.” Dave Matlow for WestportNow.com
Abrahams said his dealership is ending the program today after finding it brought customers into the showroom but resulted in only 5 percent of sales during the period.
“We’ve sold 110 ‘cash for clunker’ deals during the program,” he said.
“We are delivering all of them – the government said we will be reimbursed so we expect to be reimbursed.”
Evan Perkin, the dealership’s owner, said the program was “a good idea because it takes bad cars off the road.”
But, echoing his general manger, he added: “Good plan, bad execution.”
Dealers were told that they would be paid in 10 days and they’re still waiting. Let’s see, the government can’t handle a program as simple as this, so why don’t we give them control of the trillion dollar health care business. Can anyone name a government program that is well executed?
Maybe the dealership person is “playing” up their woes. They want instant gratification.
They complain when they have no customers and they complain when they do have customers. If they wanted, they didn’t have to accept the vouchers at all. Crocodile tears.
I think that they were told that they would be paid in 10 days and that’s what they expected. I guess if your employer decided to hold back your paycheck for a month, you would be fine with that because you don’t need “instant gratification”? So, I get it….. now it’s those evil car dealers. We’ll just lump them in with the evil insurance companies, evil oil companies, evil bankers, evil drug companies, evil doctors, evil rich. Just evil, evil, evil, evil, evil. Thank god we have the government to protect us from all these evil doers.
Ever hear of 30/60/90 days net? But the news reports due indicate delays in reimbursment. But a response from the Fed is:
>>>Government officials say part of the problem is that dealers submit incomplete claims, which in turn cause delays.<<<
>>>In the first three weeks of the program, dealers submitted 358,851 reimbursement claims, according to the National Highway Traffic Safety Administration. <<<
>>>Federal officials told auto associations last week that the government was assigning an extra 1,000 workers to process claims, Kitzmiller said. Dealers would be relieved if they started seeing an increase in the pace of reimbursements this week, he said.<<<
But I have to admit trying to keep positive is tough for those looking to knock our current administration. How sad. Keep up the good work Rick!
Just saw this in a news report:
>>>Not everyone is complaining.
“We love the program,” said Buddy Singley, general sales manager at Thompson Hyundai in Dundalk. The showroom sold about 40 vehicles under the clunker program last month and expects to sell at least the same amount this month.
Singley said the paperwork isn’t difficult, provided sales staff get all the information the government requires from the buyer upfront, such as proof that the consumer owned and insured the vehicle for at least a year.
He added that his showroom expects to get its first reimbursement this week. <<<
See it just requires the dealership to do the job right. Kind of an oxymoron.
“Government officials say part of the problem is that dealers submit incomplete claims, which in turn cause delays.” If that’s only part of the problem, I have to wonder what the other part of the problem is. Could it be government incompetency? Not a chance, huh Matt?
“He added that his showroom expects to get its first reimbursement this week.” Let’s wait and see if they get their first reimbursement this week. After all, they expected to get their first reimbursement 10 days after they sold a vehicle and here it is a month later and still no check. Guess this is called “delayed gratification”.
Please don’t get your knickers in a twist, Matt. It has nothing to do with “knocking the current administration”. It doesn’t matter who is in the White House. Obviously you have strong feelings for the Obama administration, which is fine, but please tell me any program that he has initiated, or any previous administration has initiated that has been well executed.
This program was so successful that the paperwork has been overwhelming. Car dealers, count your blessings.
No one asked me, but if anyone cared to know, I could name lots of government programs that work superbly for me, including Social Security, Medicare, F.D.I.C, the much-maligned U.S. Post Office, and even the I.R.S., while major portions of the private sector, mismanaged by incompetents, are on life support.
Medicare, S.S., and USPS are all at or headed toward insolvency. They are typical incompetent government programs. The IRS?? Almost as good as the DMV.
Wait until the Community Organizer gets his claws into healthcare.
I can’t wait until they control the weather through “Climate Change” efforts. Long Liver our Dear Leader!
As a clunker owner who bought a new car with the program, it has been a real headache. It has been 23 days since I signed the contact, paid for the car, handed over my clunker, and signed all of the papers. I am supposed to pick up my new car tomorrow. It was not my expectation that it would take 3 weeks. My clunker was not my only car. What about those buyers for whom it was? The unmet expectations of prompt delivery that the buyers had was neither the dealers’ fault nor the buyers’. This was a new program, but it is not brain surgery!