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New York dealers complain government not paying for 'clunkers'

August 20, 2009 by  

New York dealers complain government not paying for 'clunkers'What some consider as a wasteful government spending program is getting even more criticism, this time from New York auto dealers who are considering pulling out of Cash for Clunkers.

According to the Greater New York Automobile Dealers Association (GNYADA), an organization which represents 450 local franchised new car dealerships, many of its members may terminate their participation in the program because the government is not approving transactions and reimbursing dealers in a timely manner.

GNYADA president Mark Schienberg says some dealers have offered hundreds of thousands of dollars in rebates, but only a small percentage has been reimbursed leaving them cash-strapped.

"Even in the best of times, carrying this much debt would cause problems, but in today’s credit-strained economy, it’s simply too much for the dealers to handle," Schienberg complained.

Cash for Clunkers, which offers rebates of up to $4,500 to encourage drivers to trade in older, gas-guzzling vehicles for more fuel-efficient ones, was introduced by Congress last month.

However, it has come under fire from fiscal conservatives for what they see as another example of wasteful spending which only worsens the budget deficit while providing only a temporary solution to the car industry problems of declining sales.
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  • John Tapscott

    As far as old clunkers are concerned, sometimes driving an old clunker is the difference between being able to get to work or not. In my younger years I drove a lot of old clunkers. They were cheap to buy and i did all the work on them myself. Not any more. With all the computer gear in a car today the average person is forced to take it to the garage and pay through the nose. My next car will be horse.

  • John Tapscott

    The only thing government subsidies do is to increase the price of the thing that is subsidised. The Australian Government subsidised roof insulation as a means of stimulating the economy. The effect was to bring out a rash of shonky operators offering insulation services. They employed untrained workers and the result was a number of house fires an some of the young untrained workers getting electrocuted from driving staples through electrical wiring. There was at least one death. Another scheme was to subsidise rain water tanks. So the price of rainwater tanks rose to cancel out the subsidy as far as the purchaser was concerned. Billions of taxpayers’ money wasted on things people could well have paid for themselves. At the same time hospitals and schools go to wrack and ruin with plans to fix them by making the work of teachers and health workers even more difficult. Unbelievable!

  • http://donthaveone Beberoni

    You know, Ive read a lot of lambasting about this program, benefitting Honda, Toyota and other import car makers. Let me just say this. I own a Honda, and its better than any American made car right now. I also know, that having been with a guy that works at a car parts factory, that makes parts for Japenese built cars, primarily Honda’s, and it is right here in the good old US of A. However, his brother in law has a dodge, and he went out and showed him how most of its parts, were made in Taiwan and China and other countries, so dont you all think for one minute that so called American made cars, dont have so called foreign parts on them, oh contrare, they have more than the so called foreign cars. See, thing is, when we bombed them in the war, then rebuilt them, we taught them that if they built a quality product and sold it for a good price, people would want it. Hey guess what, they listened. Thats why they are at the top. Meanwhile, American companies cut quality for profit, made them cheaper, charged more, and the labor quality went to hell as the corporates and the unions went to war to see who could suck the most money of the America automakers, instead of working for the better of the company. Honda, Toyota and Subaru dont have that problem. They take pride in working there, and producing quality vehicles, and they dont have that “its not my job” attitude. You say that there, and your fired, because its everybody’s job to make the vehicle correct the first time. Its called Pokeyoke. Maybe we should try practicing what we preached to them years ago.

    • Sheila Beaudoin

      A lot of truth there, my family have bought and driven Honda’s since 1980. we are still driving 2 x 1991′s. retired now, but when working and writing off changed for a new one every 2-3 yrs.

    • DaveH

      Very well stated Beberoni.

    • American Citizen

      There’s a Honda plant not too far from where we live here in Indiana. Wouldn’t it be a riot if the Japanese built some plants up close to Detroit? I only wish we could afford a new car. I’d love to have a Civic.

  • Keith H

    This cash for clunkers has nothing to do with producing a more green world. The cars people are buying compared to the cars people are junking, are not really much different in terms of gas mileage.
    It’s design to increase car sales, and motivate people to spend more money and create a car payment wich puts people in deeper debt in a bad economy…?

    • http://donthaveone Beberoni

      Exactly. I know people here that actually lost miles per gallon in their clunker exchange. And the thing is, most of these people that made out on this, were going to buy a car anyhow. Like my 250 grand a year neighbor. He was going to buy another car anyhow, as he does every 3 years, so he was really happy Barack hooked him up.

      • DaveH

        That’s the irony, Beberoni. These people who are practicing the politics of envy, don’t realize that much (if not most) of that money is going to the rich people that they envy.

      • American Citizen

        It’s just like the housing bust. Give them just enough to entice them to buy something they can’t afford. I’m talking about the poor. They don’t take into account the payments and taxes they have to pay upfront. We’ll stick with our 13 year old Chrysler.

    • s c

      You’re right on target, Keith. Only brainwashed zombies could believe that b o’s cash-for-clunkers program will make this a greener world. IF this crap had anything to do with keeping things green, then it would not be possible for a customer to buy a low mpg, politically incorrect HUMMER. I’d love to hear b o explain or defend that one.
      This septic tank buffet is a grab at easy votes and a thinly-veiled attempt at keeping the UAW happy. This is feel-good White House B S, and it will do nothing to help the economy.
      B O and his flunkies never gave any thought as to the true cost of this insanity. As of last week, the cost of this psycho scam will be roughly $43,000 for every vehicle sold. B O’s true talent is in destroying things (aka ‘organizing’). As long as a warped captain ahab ia at the helm, how and why are American taxpayers obligated to abet an administration that is a ship of fools?

      • American Citizen

        What is so bad about all this is that they are taking perfectly good cars that could be sold to people who have true clunkers. Instead, the dealers have to put on masks and gloves to pour a toxic substance into the engines to freeze them. Good for the environment, not?

  • EMP NC

    Just wait until the Feds control health care!! and you think cash for clunker thing is bad.

    Another thing, to all you really green tree hugging libs, is anyone considering the waste of perfectly good cars going to scrap yards, just because the MPG is less than 50 MPG. Now all those idiots who probably had a paid off car or truck with a fuel bill that may have been a little higher, have a $500 or more car payment, and in this economy!! God help them if they loose their job, and probably many will. I hope you’re loving THE CHANGE!!

  • Sheila Beaudoin

    I am a Canadian, but have 2 comments.
    1. I doubt the effectiveness of the program, as a lot of the cars being bought were not made in the U.S. I am not in Ontario, but they people working for Toyota etc. there are probably happy with the plan.

    2. Perhaps this expenditure would have been much better, aimed a making conversion to natural gas affordable by reducing or cancelling the licensing fees which cost a shop installing a conversion 100,000′s of thousands of dollars annually making conversions unaffordable for most.

    Such a program would have
    1. created work right at home in America, and could jave contributed to training programs for some unemployed.
    2. reduced pollution as natural gas is clean burning, and efficient.
    3. reduced waste of materials as many so called clunkers had lots of life left, just use a lot of fuel. The U.S. has adequate supplies of natural gas shown by the spot prices on the commodity index.

    The old program which was likely sponsored by BIG OIL lobbyists, needs to be scrapped. it is an example of your government looking after their friends and contributors.
    see:
    http://www.metanoauto.com/modules.php?name=News&file=article&id=2130

    • DaveH

      Sheila,
      I can’t argue with your clean burning point, but if Natural-Gas vehicles were economical, consumers would buy them. They aren’t, so the government steps in and subsidizes the industry with the taxpayer’s money.
      And I have never quite figured out why Oil Companies have become the “bad boys”. We complain vociferously when the price of oil or gasoline goes up. Why? Because we like to go places, but so far it is still the most economical fuel available. Many of us will go to the grocery store and load up with soda pop at anywhere from $3 to $5 a gallon and think nothing of the price. Oil companies have to find the oil (very expensive), transport it, refine it, and then the government piles a load of taxes on it. Much more effort goes into getting gasoline into our tanks than goes into producing soda-pop. Where is all the hue and cry over the high price of soda-pop? And I maintain that soda-pop is every bit as detrimental to our health as is the pollution from gasoline. Please don’t construe that statement as meaning I want government to control our soda-pop consumption.

      • American Citizen

        If that stupid healthcare bill goes through, watch the food czar put taxes on soda pop and anything else they say is bad for our health. That’s one of the ways they want to get money to pay for the option.

  • DixieConnie

    I really liked the way Obama put it the other day when he said Washington gets all wee-weeded up. I think that is what happend with the Cash for Clunkers, everyone got all wee-weeded up over the cash aspect and forgot that the money actually is coming out of their pockets (i.e. taxes). Why can’t anyone see that nothing is FREE, nothing.

    • Dickie

      Dixie,That’s why they call theirselves DEMON-CRAPS,Always looking for a FREE hand out, Just look at the damn tax cheats,thives,& liers they put in office over & over,My GOD,I was PISS AT JOHNNY DEPP,When he said the american people were stupid,Until I seen who people put in office,We all dont deserve this trash in goverment,These thugs are laughing in our FACES,Just look at tryant spector,pelosi,reid,hussein bama,But now we do,Would you buy a $4-millon dollar home,Pay cash,And not read the contract,Because I have to make just only a few changes.

  • ONTIME

    Sounds like Americans are just now getting the picture of how building on sand wll inevitably ruin your day……feel like eating that poke pig you bought?

    Those who fail to pay attention to history will fail in the future.

  • Liz

    It’s too bad everyone didn’t realize what BO was like last year at this time. Everyone seemed to be ddazzled by his…BS. We could have prevented him from getting into the White House. He is everthing and more that others have described hime to be. Cash for Clunkers was a debacle. That money could have been better served to improve our economy, improve the job market. BO – 3 years and 4 months left of you – which is too many.

  • Robin from Indiana

    Cash for Clunkers is really a warning to the United States. If the paperwork and the reimbursements are not being handled in a timely manner, how in the world will the government handle health care for everyone? What is it going to cost doctors and hospitals to employ the extra people they will need to deal with the paperwork? Wake up America! We are seeing how screwed up the Cash for Clunkers is, health care is not going to be any better!

    • http://donthaveone Beberoni

      Just another reason why the government should not get involved in things. They have screwed this up, theyve screwed the schools up, they screwed the banking system up, they screwed up social security, and now some actually want them to manage the health care? Are they fricking nuts? Are we really that dumb? Come on, take a look at what happens when they manage things. No no no. Get off the crack and just say no.

    • Dickie

      Hey Robin.I think cash for clunkers,Is more or less Hooks for suckers,I think this is funny as HELL, I dont feel sorry for these clowns,Just wait until the thugs in NY,Force this crap health care for our communist party in the Big House,To put more money & power,To these arrogant B–t–ds,They put in office,What go’es around come’s around,That is alwright the next pukes in line to get screwed is these thugs in union’s,These real inteligent bum’s,Wanted change they got it,But the fun is just starting,These jerks have politicians,That is going to put a White elephant on the American People,That has told the PEOPLE They are NOT OR HAVE THE TIME TO READ A BILL,That is going to cost us TRILLON’S & TRILLON;S of DOLLARS,When all they axcelrod,muthar,kennedy,pelosi,reid,dashel,& the banking Queen franks, To stop takeing money from hospt,Pharmaceutical’s,To let charge what they want,Problem solved.

    • American Citizen

      There also won’t be enough doctors and nurses to handle the load. Look for long waits to get treatment as they have to in England and Canada. With the huge number coming aboard, there will also be rationed care. The cost is not going to be what Obama says it will be. That’s been debunked by the CBO. Common sense says the cost will go up, not down.

  • TeresaE

    These dealers better go back and read the disclaimer they agreed to before logging in to the CARS computer systems.

    They agreed to allow the government to “own” their computer and ALL the info on it.

    The government now has 100% legal access to ANY info or program running on the dealers’ computers.

    Want to bet on who is going to be audited soon?

    Good luck to them in their upcoming fights and bankruptcies.

  • vern

    These businesses first mistake was trusting the government. Of all the evil on this planet, I have never ever seen a more distrustful organization as the US government and politicians in general. I would not trust them to watch my dead dog, and not screw it up. I work for them for twenty years and found that to trust them was like turning your life decisions over to a monkey. This is just another example of good intentions, but in reality, a bad decision, as usual.

  • Barry

    BO is a community agitator plain and simple. Mess with me and you get the action like Joe the Plumper and Sarah and her family. Calling Americans Nazis, terrorists and mobs. Shame on you BO the great communicator! So eloquent when he speaks that shivers go up newsmen’s legs. The great one. What has BO done to help America since elected? Loss 3 million jobs I think.
    He and the libs can not run a $3 billion dollar program yet the libs trust him with their health care plan. Bunch of fools drinking kool aid.
    When BO & the socialist get finished with America it will make Al Capone and Hitler look like kindergardeners. Forced abortions, health care rationing, water sterilization, getting rid of those who they deem do not meet the criteria for contributing to society. Union bosses forcing Doctors and nurses to join unions and then when you are bleeding to deaf they have to take that mandatory union break or better yet I can not help you that is not in my union job description.
    Oh, it’s in that government controlled health care plan for America.
    52 million stupid Americans voted for the Socialist BO and every American now gets to do with less just to make BO happy while he and his family go on vacations every other week.

    The kool aid drinking libs think Sarah is a liar but believe every lie that comes out of BOs mouth. No Earmarks? Try over 800 in the Spendulus Bill.

    Hey libs what about that war in Afganastan? Guess that’s Bush fault too except BO owns it now and has no clue how to win the war.

    So BO fix something man and stop whinning when Americans and little ole ladies disagree with you the community agitator,friend to Acorn, Big Union Bosses, lobbyist, and special interset groups and baby killer.

    • http://donthaveone Beberoni

      Hey Barry, thanks for telling it like it is. I for one appreciate the truths you cite in your post. To me though, its like watching a sitcom. Because you see, this poor guy has no ideas of his own, no plan, no direction, and just blindly follows the bull crap his party and his telestrater tell him. But its all blowing up in their faces, because they keep doing the wrong things over and over again. America is getting tired of it, even his own party. But Barry, sit back and watch with me, as his own guys will soon pitch his butt under the bus to save themselves. Its the best comedy Ive watched in a long time. Hillary is leading the charge, laughing out loud, as they plan her run in 2012, and you mark my words, they will dump this guy. He is just their pawn. Of course, after they dump him, somehow they will make it out to be Bush’s fault, you know how it is.

  • s c

    B O, the Great Organizer, specializes in empty promises, psychotic ‘planning’ and a schizoid demand for us to have faith in a clearly lunatic administration.
    B O should heed the advice of Nevada casino owners. They
    know what’s coming, and he’s on his way out. He can’t deliver. He and his ‘wizards’ can’t make a congressional majority ‘work,’ yet b o still talks about ‘change’ (what we’ll have left in our pockets and bank accounts?). So much for THE Chicago ‘organizer.’
    No matter what you call this predictable train wreck, America does not deserve obama or his parasites.
    B O CAN’T make cash-for-clunkers work. Did he ever take an economics course at Harvard (can he prove he passed a single course)? Face it, America, a homeless man or woman in the White House wuld have more common sense and more potential to get things done right.
    May the resignations and list of lost elections multiply.
    America, we’ve been hosed again.

    • http://donthaveone Beberoni

      All because, so many, instead of getting educated and looking at who he was and what he stood for, which neither was revealed so they should never have pulled his lever, but the masses let the brain sucker in their living rooms chime into their heads – change – change -change, and they got hynotized and pulled that obamination lever. There is no excuse for not being educated in todays world. Shame on the dummies.

      • mikey

        They wanted to set history electing the first black man they were to stupid or blinded by that.

      • American Citizen

        A lot of young people voting for the first time fell for his rhetoric. I think we need to up the voting age to 25. Instead, they lowered it to the wet behind the ears age of 18.

        I read in Newsmax that the New York Times said today that Obama is lying about the healthcare plan.

        John McCain said at his Town Hall Meeting in Arizona today that our government is corrupt.

        Wow!

    • American Citizen

      You’re right about them wanting the change in your pockets and bank accounts. It’s in the bill.

  • John C. Davidson

    This government program points out why a lot of health care provider refuse to treat Medicare & Madicaid patients , they never know if and when they will be paid.

    • Dickie

      John,People are so blind,The goverment are so Illiterate,They have screwed up S.S & stole that from us,They have screw up Medicade,They have screwed up Medicare,They have given our jobs to other country’s,They are letting illeagle people in just to currupt elections,All ready getting free medcial care,Our jobs,filling up our prisons at our cost,Letting al gore scam amercia out of billons,This is the same old s–t,That bill clinton,& haliary tried to slip in on us,And after 8-yrs,With all the lies,They still are not smart enough,To have a solid PLAN,Even this damn IDIOT HUSSEIN BAMB,HAS admited HE dont even know what in the hell is in this crap.After all these years.And some people are so stupid,They just love to be screwed over.I dont know why but they are mice following the pied piper,To drown.

    • American Citizen

      We have yet to be treated by a doctor or hospital that doesn’t accept Medicare. But you’re right in that Medicare is slow in paying. Look at how long it takes to get your tax refund if you have one coming. We always got ours back from the state way before the Feds.

  • Ray

    Can these car dealers please shut up? Don’t they realize how churlish they sound complaining about not getting their government handout fast enough to people whose industries have received 0 government subsidy? Seriously, they need to shut up and concentrate on filling out the form correctly. I know it’s 13 pages long, but maybe for $4000 you can handle it. I know I’d be able to.

    • mikey

      Well Ray I was going to say onumbnuts would be remembered as a good used car salesman, but he failed at that too.

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