Political Discussions
Cash for Clunkers is killing the car industry.
Posted by caspergirl35 • 8/19/09 • Subscribe to this Discussion [RSS] • Report This Topic
Topics: cash for clunkers, national debt, obama
Car dealers are growing increasingly impatient with the government's slow pace in reimbursing them for accepting trade-ins as part of its popular "Cash for Clunkers" program, even though Transportation Department officials say they are working to address the delays.
The National Automobile Dealers Association estimates that dealers have hundreds -- and in some cases thousands -- of applications pending that are "worth hundreds of thousands or millions of dollars."
In Maryland alone, dealers have put in $36 million in claims under the clunkers program but have been reimbursed for only about 2 percent of the total, said Peter Kitzmiller, president of the 325-member Maryland Automobile Dealers Association.
entire story: itsjustmyownopinion.blogspot.com
User Comments
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A personal anecdote on this one. My 21 year old fell into enough cash for a $4000 down payment. He has a 12 year old car that would be perfect for the cash for clunkers program because it would be one of those trade ins that dealers take and throw on the back, back, BACK row of their lot. Right next to the garbage dumpster, lol. Anyway, my son picked out a nice little Pontiac Vibe, we drove it and he liked it. It gets like 32 mpg, so again, his trade in qualified. Once we got to talking to the dealer, he said that he won't do the CFC program anymore because he hasn't gotten paid by the Government on any of his deals yet. He then pointed to an entire row of CFC trade ins...
My but isn't our Government efficient. We go back tomorrow and will see what the dealer gives him for his trade in - NON CFC. -
Last thursday I helped a friend buy a car. (not a C4C trade though). But the dealer there had 410+ cars that they haven't been reimbursed for. And the sales people are not getting their comission before that happens.
Yeah, they aren't happy at all.
And the Obamaites have the stomach to claim that they can run Health Care..-
That's very interesting. I wonder when the last time a dealership sold 410+ cars in that short period of time was? -
Now everyone has the car they wanted and nobody will want a car for a good long while. The car industry is going to plummet in the foreseeable future.
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The news last night and this morning on the radio is about 1350 workers being recalled to GM plants in the US and Canada to produce 60,000 more vehicles. Another 10,000 workers will get overtime.
www.npr.org/templates/story/story.php?storyId=111979633
voices.washingtonpost.com/economy-watch/2009/08/gm_announces_first_producti...-
That is good news. Too bad about all those dealers that were forced out of business, thanks to El Presidente.
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All I know about is the consolidation that has been occurring. Given new market conditions, that is necessary. But cite some studies to illustrate your point. Or can I find what I'm looking for in someone's talking points on Fox "News"?
Of course, one must also ask where the remaining dealers would be without the federal government, which saved the car companies that supply them in the first place. It could have all gone under this year. Seen from this point of view, your criticism rings hollow. -
No they wouldn't. They would be selling what people wanted. And if people didn't want their cars they would go out of business, just like they should.
My god, using your business models, we'd be selling horse buggies and Steam engines.. -
Your viewpoint is at least honest, which I cannot say about those who blame Obama for the auto industry's woes.
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I blame Obama's quote-unquote task force for forcing hundreds of auto dealers to go out of business. Just another example of the Government's "midas" touch.
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1350 Jobs created from 3 Billion dollars.
3,000,000,000 / 1350 =$2,222,222
2.2 millions dollars per job. For arguments sake lets say that they make 50.000 a year and pay 30% taxes, that comes to $15,000 a year in taxes.
2.2 million paid off at 15k a year would take 146 years to pay off. NOT counting the interest, just the principle.
and you think this was a good deal? Holy crap -
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Maybe it's a mantra.
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actually if you bothered to read the blog you would see there are a few post regarding this issue. I see you took your mask off...but you could put on some clothes.
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I talked with a local car dealer in my town and they state that number one it is pretty difficult to qualify for the program. They also stated that they (a small company) have sold 25 cars on the cash for clunkers deal and have not seen a dime of the money fromt he government yet.
Now, they are having a problem paying their sales people, they are out the $4500 at the moment and yet the realtor still wants to be paid for the spot they are renting.
Yeah this really helped. You have to wonder...where is the 3 million that was alloted for this?-
$3 million?
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Well, they're not "out" $4500, because it's $4500 they would never have had without this program. I'm confused about why so many people in this thread are talking as if the dealerships are advancing cash and waiting for reimbursement from the government. They're not buying cars, they're giving trade-in value--something that happens largely on paper. When they do their own trade-ins, of course, they don't see the cash value immediately, or in many cases any time soon...rather like what's happening now, except that in this case they're going to get direct cash without having to fix up and sell a car.
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"Well, they're not "out" $4500, because it's $4500 they would never have had without this program. I'm confused about why so many people in this thread are talking as if the dealerships are advancing cash and waiting for reimbursement from the government."
@MadameX...Because that is exactly what they are doing. The car dealerships have to BUY those new cars from the manufacturers. They buy them at dealer invoice, and in many cases, sell them at just above dealer invoice. So by the time they take off the cash incentives (owner loyalty, rebates, etc..) they are selling the car at right about what it cost them. Maybe $500 - $700 over invoice. Then they have to take the $3500 - $4500 off the price for the CFC rebate. This means they are now selling the car for less than they paid for it until the Government reimburses them. Get it? They can't even recoup their losses on the sale of the used car, because those are being destroyed.
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And they want us to let them run the health care system? lol
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Already heard that from Fox "News" commenters. The bad analogy hasn't improved with age.
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Neither has certain people's temperaments...
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excuse me I meant 3 billion!
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FYI, there was a discussion about this right after Fox "News" first issued its talking points to its audience: www.blogcatalog.com/politics/discuss/entry/cash-for-clunkers-debacle
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LOL, you're a fine one to be speaking of talking points.
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He doesn't have talking points. He has the Obamaites religious mantras.
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Kum By Ah...
*waits for mark to correct my spelling* -
No no no.. mark will tell you that Kum By ah sounds like you are trying to make fun of Obamas African Heritage, and thus makes you a racist.
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Here's a story about those delays. www.breitbart.com/article.php?id=D9A63RC81&show_article=1
Does anyone know which agency is handling the spending? I wonder how prepared it was from a manpower point of view. After all, a one-time $3 billion expenditure is a complicated undertaking in such a short time, especially if you want to eliminate any potential fraud. I don't like those delays, but I'm not surprised about the time element.
If dealers have to undertake new outlays to make these sales, then I get their problem, though presumably they could work their out in their contracts with the auto companies that supply them. If they were selling inventory that they already had that was clogging up their lots, costing them money, then I'm less sympathetic to any whining.-
Oops. The article says who's running it, the Department of Transportation. I wonder what they've set up to process this paperwork. It's certainly not part of normal departmental business, and I imagine the department has no prior experience in this kind of program, let alone one on this scale.
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It may be a complicated undertaking...but they should have taken that into account before they promised these car companies that would cover the bill. Instead they want the car company to fork out or take the amount off of the sale of the car and then wait for ...what ...years before they get paid.
Lets face it..if you owe the government they come after you asap. They owe you...well don't hold your breath.-
A small federal contractor I know gets paid two months after she invoices the government, which she does monthly. I'm not saying that's the same situation, but it does put things in perspective.
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What does it put into prospective? A Federal contractor...gee lets see one who works for the government get paid...wow
The car dealerships did not come up with this...the government did and told the dealerships they are to comply.
A federal contractor is defined by U.S. Code "to include any person who enters into a contract with the United States or any department or agency thereof for the rendition of personal services and whose compensation is paid in whole or in part from funds appropriated by Congress."
I don't recall the dealerships contracting on this...it was and is a government program that was mandated and the dealerships complied. They then should be getting paid asap as they are selling the cars asap and destroying the clunkers (more work for them) in the process.-
Presumably some sort of contracts are involved. You do have to register and agree to meet certain conditions. I don't know what conditions the DOT is promising regarding payment schedules. This is what dealers get to read before they register for the program in the first place: www.cars.gov/dealer/
As much as they surely need the money, what were their sales like without the program? Weren't they sitting on inventory that they had contracted for last year, before things got so bad? If so, hasn't this brought them an immediate infusion of cash as they have been able to liquidate assets that were otherwise costing them money?
I do note that some are complaining about the program not working well enough, not that it exists. Seems some actually do want the government to get involved in tough economic times. -
The "clunkers" are to be destroyed inside of 72 hours, after that they are worthless.
So the gov't are telling the dealers that they have to destroy the only asset they are holding, and wait for reimbursement.
there was a statement today by the Transportation secretary that they "would get paid" of course, there was no statement as to WHEN they would get paid.
Some other interesting facts.
"Dealers must pay the rebates out of pocket and wait for reimbursement from the federal government. Some car dealers have said their reimbursement requests have not been approved, leading to a cash crunch at their businesses. Dealers typically borrow money to put new cars on their lots and must repay lenders within a few days of a sale."
"The Greater New York Automobile Dealers Association, which represents dealerships in the New York metro area, said about half its 425 members have left the program because they cannot afford to offer more rebates."
"Through early Wednesday, auto dealers have made deals worth $1.81 billion and are on pace to exhaust the program's $3 billion in funds in early September."
www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/08/19/MTTI19AS2T.DTL
God help us if this is how a heart transplant will work..
"Remove your heart now, you'll get a new one, we just won't tell you when" -
Again with that analogy to health care. Just because every right-wing commentator on Fox said it, doesn't make it true.
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"Again with that analogy to health care. Just because every right-wing commentator on Fox said it, doesn't make it true."
Okay mark. Fair enough. Please point to one Government program that is run efficiently, under budget and that is successful. -
The deafening silence returns...
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I think this is one of those times when it is better not to engage...(because he doesn't have an answer)
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No as the dealerships have clearly stated...Yes they are selling cars like crazy, but guess what "they surely need the money" is still the problem. As dealers have said,
"In Maryland alone, dealers have put in $36 million in claims under the clunkers program but have been reimbursed for only about 2 percent of the total, said Peter Kitzmiller, president of the 325-member Maryland Automobile Dealers Association.
"It is ludicrous at this point," Kitzmiller said. "We've got deals that are just sitting there waiting to be reviewed. The customer is gone, the car is gone, and you don't have your money."
Would you like to sell your car (because the government says they will pay your for it), give the buyer the money to do it, sign the papers over and never get paid back?
now you are out of a car, you have not been paid for it, you have to do tons of paperwork and still not see the funds but at least that would be the end of it for you.
the dealerships need the promised money to stay in business, to pay their bills, to pay their employees...etc.-
And as I pointed out in another thread, the car dealers are missing out on a bunch of money in not being able to sell those used cars. Dealers make A LOT more money on used car sales and having to destroy these cars is really stupid. My wife used to be a car salesman(person) at one of the highest volume dealers in our state. She knows first hand that dealers make more money on the used sales. Besides this knowledge, I took the opportunity to ask the salesman who just sold my son a new Pontiac Vibe a couple questions. I asked him about his thoughts on the cash for clunkers program and he said that his dealership won't participate in it anymore until he gets paid for the deals he has already done. He then pointed to an entire row of CFC trades. He also said not doing anymore CFC deals hasn't hurt his business any. When I asked him about the margin on used sales versus new, he confirmed what I already knew, which was that dealers could sometimes make thousands on used deals. They typically make only hundreds on new sales. He also said that the prices of used cars has already started to go up because there are less used cars available due to CFC.
All-in-all, the CFC program is really a poorly conceived, poorly executed and poorly managed program.
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Left criticism of "Clunkers"
citizenvox.org/2009/08/20/public-citizen-in-the-news-energy-edition/#more-1... -
www.msnbc.msn.com/id/32490342/ns/business-autos
The White House has touted the program’s success in providing a targeted boost to the sluggish economy since its inception in late July. Through Thursday, auto dealers have made deals worth $1.9 billion and the incentives have generated more than 457,000 vehicle sales.
But the administration needed to put a halt to the program to avoid surpassing the $3 billion funding level. Consumers were on pace to exhaust the program’s coffers in early September and dealers have complained about long delays in getting reimbursed for the car incentives.
John McEleney, chairman of the National Automobile Dealers Association, said he remained concerned that so few dealers had been reimbursed for Clunker deals. But he said the Monday deadline should give dealers time to get their paperwork in order. [...]
The Transportation Department said they have reviewed nearly 40 percent of the transactions and have already paid out $145 million to dealers. Obama officials said there are no plans to seek additional funding.
Applications for rebates will not be accepted after the Monday deadline, administration officials said, and dealers should not make additional sales without receiving all the necessary paperwork from their customers. Dealers will be able to resubmit rejected applications after the deadline.-
do I still have time to cash in my '73 International Harvester pickup on a new SUV?
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No, but I'll trade you for it
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Better get a mask for it - at least.
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For the truck? I think that's a bit silly. Besides, who wants to deal with a mask in weather (all soggy) or when you need to pop the hood....I was thinking more of a paint job - all you'll see are the headlights.
Muwahahahahaha -
"As of Friday, dealers nationally had submitted 358,000 transactions for rebates worth a total of $1.5 billion, said the U.S. Department of Transportation, the agency that administers the program. The agency did not say how many claims had been paid; dealer groups say the percentage is likely in the low single digits."
www.dispatchpolitics.com/live/content/local_news/stories/2009/08/18/copy/cl...
Still waiting on an answer to my question above, mark.
"Okay mark. Fair enough. Please point to one Government program that is run efficiently, under budget and that is successful." -
According to the article above they've reviewed 40% and paid out 145 million so far. I haven't been able to really keep up with all of the news and numbers, but it would seem that we have some conflicting stories.
I was also surprised to see that the NADA intimated that one of the reasons for the hold ups was that the dealers didn't have their paperwork in order. -
I just posted it to show the ambiguity concerning this issue. If the White House would release the figures on what they have paid out, then no speculation would be needed.
"The agency did not say how many claims had been paid..."
But I guess that is a national security issue. -
@Anok. I don't really have one... just being a smartass
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I agree that there is ambiguity. And I'm not sure why they haven't released any figures unless they feel that their time is better spent processing the claims - because all claims will be paid, anyway.
With the program coming to a close, there will now be ample time to get those claims paid out. I don't see a problem thus far. But hey, if you put it into relative terms - I've known private insurance companies who take a lot longer to pay their claims -
Time better spent....
Unless they are processing this without computers (which indeed is what it seems like considering the pace) producing a set of numbers takes about 10 seconds.
I think they have the time... -
@Anok
There's also the matter of dealers who didn't read the fine print... kinda poetic -
Just what we need, Poetic justice screwing another industry in a tight economy.
I'm pretty sure that if that becomes an issue, the real poetic justice will appear when every car dealership in the country flies "vote republican" flags before every election in the next 4 -
Agit- indeed, the head of the auto dealers association mentioned several causes of the slow down - such as dealerships not having their paperwork in order, and a massive influx of claims crashing the network. Plus the sheer number of claims to be reviewed.
Erik - you do realize that all claims must be reviewed, and consist of bundles of paperwork for each claim, don't you? It takes time to properly asses each claim, and their are millions of them. It's even harder if the paperwork is incorrect, and must be sent back to the dealership. -
it's the damned-if-you-do-damned-if-you-don't argument. If they had not required such stringent standards for trade-ins, the congress would have been accused of throwing money around willy nilly. Now some the businesses that are benefiting from the program are crying that they aren't getting a quick enough hand-out.
well...
www.youtube.com/watch?v=m3G1lv8I8OM&feature=related -
I think almost every dealership that participated benefited from the program - granted, having to wait for the money does cause problems. But then...I have to wonder - for all of the trade ins dealerships do take on - how are they compensating their employees for their sales before the trade in has been sold? They don't recoup their costs the minute they get the car - and used cars sit on lots for ages - and then they pay a small commission on the sale of the used car, too....
I wonder why this program is causing that specific problem? -
I've heard that commissions are getting held up. That's really between the dealer and the employee... unless there is some prohibitive provision in the bill...
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"...indeed, the head of the auto dealers association mentioned several causes of the slow down - such as dealerships not having their paperwork in order, and a massive influx of claims crashing the network. Plus the sheer number of claims to be reviewed.
...you do realize that all claims must be reviewed, and consist of bundles of paperwork for each claim, don't you? It takes time to properly asses each claim, and their are millions of them. It's even harder if the paperwork is incorrect, and must be sent back to the dealership."
Yes, on a simple rebate program that any private company could undertake much more efficiently. Makes you wonder how they will handle 16-19% of the economy. I am not impressed with the Government's performance on this boondoggle.
"But then...I have to wonder - for all of the trade ins dealerships do take on - how are they compensating their employees for their sales before the trade in has been sold? They don't recoup their costs the minute they get the car - and used cars sit on lots for ages - and then they pay a small commission on the sale of the used car, too....
I wonder why this program is causing that specific problem?"
Anok, they compensate their employees on the sales. A typical commission on a new car sale is $100 - $300. On a used car deal it is much, much more 99% of the time. Now with hundreds of thousands of good, used cars being destroyed the price of used cars has gone up already, and will continue to do so. And yes, the used cars do sit on the lots for a time period, but when they go past 3 months, they either are rotated to other dealerships or sold. For example, we have a man who owns at least a half dozen car dealerships in a 100 mile radius around where I live. So if a car sits too long, they simply move it to a different lot. That way the stock is always "fresh," and also after a certain date the insurance they have to pay on those cars goes up considerably. That is why they shuffle them or slash the price to "move" them.
The reason this program is hurting or will hurt the industry is the loss of all those vehicles. They might be called clunkers, but they are very decent cars in most of the cases. -
But you've missed the point Antics - the dealerships are complaining that commissions are being held up because the rebate hasn't been delivered.
If we look at it like this:
*$4500 incentive =(is the same as) $4500 trade in on a used car.
*Rebate from the government ($4500) = $4500 made on the sale of the used car
*Commissions are paid on the sale of the new car = Commissions are paid on the sale of the new car
*the wait for the rebate = the wait for the sale of the used car
So, the dealership gives the customer a $4500 rebate for their trade in, sells the new car, pays the employee's commission from that sale, and then waits for the government to pay them back the $4500 about the same amount of time it would take to sell a used car, and for about the same amount.
Where's the problem? Why can't they pay their employees? it doesn't matter what the resale value of a used car is - if they can't pay commissions on sales with trade ins, then the problem lies not with when they get the rebate money back from the government, unless these dealerships are paying employees on the margin. -
The problem lies in the fact that most new cars are sold at just a bit above MSRP, or what is known as invoice price. By giving the customer $3500 - $4500 they are getting less for the car than they paid for it. Kinda hard to pay a commission when you are in the hole right off the bat.
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Right, but that's the case anytime they take a trade in. So what's the difference? They aren't recouping that money until months after the fact regardless of what program, incentive, or trade in they use.
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@Anok...You are trying too hard to see this. It is simple.
Sell new car=commission to salesman.
Sell used car=commission to salesman.
When the dealers have to sell the NEW car for LESS than they paid for it, they have to wait for the Government to reimburse them the $3500 - $4500 they took OFF the sales price of the new car. to pay the salesman. Okay? The trade in has nothing to do with the commission on the sale of the NEW car. -
Yes, but other dealerships are matching the incentives and not having this problem. Dealerships take trade ins and knock dollars off the DSRP/MSRP all the time. Both of which are marked up from what they paid for the car. (Sometimes significantly so).
And I'll almost guarantee that they are knocking the rebate off the DSRP and not the MSRP.
This (commissions) should not be a problem, here. It isn't for other dealerships who made similar offers without being part of the program. -
"And I'll almost guarantee that they are knocking the rebate off the DSRP and not the MSRP."
DSRP? I think you mean the Dealer Cost, because otherwise there is Dealer Invoice, sometimes called the Factory Invoice - what is paid by the dealer to the car manufacturer. And then there is MSRP, the Manufacturer's Suggested Retail Price.
I fail to see why you are defending the Government so adamantly. I know that in my neck of the woods car dealers began offering the rebates as soon as the CARS website went up. So it has been going on for nearly two months. I know the program didn't officially start until about a month ago, give or take a few days. You got to remember though, that some high volume dealers are out hundreds of thousands of dollars.
I hope that in the end, all dealers get paid but some are reporting that because of mistakes in the paperwork they are left holding the bag. Why the Government has to make everything so complicated is silly. -
Here's what I haven't heard anyone address, Antics--were they given to believe that they'd get immediate payment? That's so unusual both in the business world and in the government that I'm having a hard time believing these dealers expected payment in less than thirty days.
Presumably, most of the dealers who participated continued to participate, so paying them on a daily or even weekly basis would only create significant unnecessary expenses...in which case, the same people complaining about the "delay" now would undoubtedly be complaining about inefficient government spending. -
MadameX
What would you consider being a "long wait" and when would you say that the gov't has failed to live up to their end of the bargain?
180 days? 180 Years? -
DSRP = Dealership Suggested Retail Price. It's standard here, and it's much higher (and harder to get/sell) than MSRP.
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@Madam...okay, wait time so far is not excessive. But look at it this way. It was supposed to be a simple rebate program and all of a sudden each deal requires TWENTY pages to be faxed, a near 200 page book of rules and then they looked at how far behind the Government is on Medicaid and Medicare payments. Wouldn't you begin to get worried? Waiting on payment is one thing. Waiting on the Government to even respond to the deals they submit is totally another.
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Dealership profits are not so simple as most businesses; sale price - invoice cost. Most dealer contracts have all kinds of incentives and kickbacks from the manufacturer that dealers actually make money if they sold every car at invoice.
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I'm not sure if anyone has mentioned it yet, but major car companies are fronting the money to dealers until they get it from the government. I believe that's just Detroit, but maybe it includes others. If that's the case, then the dealers should be able to pay their commissions.
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Car companies are making a killing on this, so why not.
www.abcnews.go.com/Business/cash-clunkers-helps-gm-revival/story?id=8357253
so much for "killing the car industry."
at what point does hyperbole become an outright tall tale
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Just about the time people started talking tea parties and town hall meetings.
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Come on Agit8r, I believe hyperbole like that coming from mark. He looks at the world with liberal blinders, but you? Can you not see how the loss of those trade-ins is bad for the business? The manufacturers might be doing okay, but as is usual with these types of government interventions, the little guy pays the price. In this case, it will be the car dealerships that do.
@mark...go mix another batch of Kool-Aid. -
Like I said "Car companies"...
but that stuff trickles down right? -
Well when you take into account that in the weeks leading up to the CFC program new car sales slowed it only shows that the normal amount of sales occurred all at once, rather than over the summer. Not sure of the overall benefit. I know there were additional sales, there had to be. But I guess if the White House ever releases the numbers we will be able to tell then. Also have to see how the market acts in the immediate time right after the CFC program ceases,
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I'm still trying to wrap my mind around the concept of this "killing the car industry" when the car industry is gearing up to build more cars and is also fronting dealers cash while they wait for the government subsidies. The only way I can explain this non-argument is that it is the right grasping at anything it can.
This particular argument of the right's is pretty revealing. The right wants no government action of any kind in the economy, and yet when the government acts in this way, the right is complaining that it didn't work as well as it should have. Hypocrisy. -
On a different note, have you ever wondered what happened to all those parts? www.washingtonpost.com/wp-dyn/content/article/2009/08/20/AR2009082002462.ht...
(You might have to close an ad to see the article.)-
Well at least some clunkers are contributing parts to the auto repair industry. A great number of the clunkers are being crushed right away. That is sad and I think all the clunkers should be parted out. To just destroy is crazy and not even good for the environment.
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"not even good for the environment"
unfortunately, true : ( -
wp
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The program started 32 days ago. I'm not sure how quickly most of you are accustomed to having your invoices paid, but 30 days is pretty standard in the business world. That means not only that the latest of those payments are just reaching the standard turnaround time for business invoicing, but that the vast majority of them haven't even reached that mark yet.
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Wow - you're right, I thought it had been running at least two months. But it started July 27th.
I guess this is all just more of the same - complaints complaints complaints when none are really warranted. *Sigh* -
IF the promise was 10ish days and it has taken 25ish days, there is still some room for complaint. That said, the extra couple of weeks still doesn't make it a bad program.
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"still doesn't make it a bad program"
No, the program itself took care of making it a bad program.
We'll see, it's over now. Who wants to bet that the car industry is going to keep increasing it's sales? Which they should if it had any real benefit. -
Seeing the response from consumers - car dealerships (here) have continued on with their own version of the program. The incentives aren't as high as the CARS program, but they are offering more money and more rebates than usual on trade ins and sales.
And they get to keep the used cars to sell later.
They're just riding on the momentum - and they're doing well by it. Of course, no promotional sale benefit lasts forever, but it is the boost they needed. -
I'm against CARS but IMO too much criticism was based on the timeliness of the payments. What is your logic for car sales should continue to increase post incentive? Typically sales decline after a promotion. Why should this one be different.
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I'm basing it on the continued incentives being offered by the dealerships themselves post CARS. They got a real big heads up and people are chomping at the bit for more - so they're riding it for all it's worth.
But of course, promotions are done for one or two specific reasons and those reasons alone - to get the dealerships moving cars so they can get rid of old stock or boost their sales during their downtime.
So instead of closing their doors, they now have the money - and the drive (no pun intended) to keep their doors open until they can get back to a normal business market. -
Csi, what are you basing this on "We'll see, it's over now. Who wants to bet that the car industry is going to keep increasing it's sales? Which they should if it had any real benefit."?
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Well they are talking about how great it is that GM added 1350 jobs for this.
If they get canned again when they've replenished the supply, it was a pretty crappy deal all in all. Unless the industry actually turns, all they did was clear out the inventory, it would have been cheaper and more honest to just hand out more money to the carmakers in that case.
The buyers are already showing "buyers remorse" to the tune of 200-300% of normal.
More stupid people in debt they can't afford.
A survey of nearly 1,000 participants in the program found 17% say they have some doubt or serious doubts about having bought a new car, says CNW Market Research. Most said they regret now having a $275 to $350 per month car payment they didn't have before the purchase. Typically, buyers' remorse hits roughly 6% to 8% of new vehicle buyers within a month. But dealers don't have any regrets: -
It the 2300 get laid off, that isn't saying anything about CARS. That is saying the hiring decision was a bad one.
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For any of you that have ever in your life dealt with the government on any type of reimbursement issue, why don't you talk to any veteran out there? This goes all the way back to the Vietnam era. The truth is; the government is not quick to move on any type of financial transaction unless you owe them money Make Sense? Those dealers should be happy that anyone even bothered to come and buy there cars to begin with. Your "new" car depreciates around $2,000-$3000 dollar as soon as you drive it off of the lot. So my fiddle does not play for any car dealer and never will at any time in my life.
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