Cash for Clunkers sputtering to finish line
By Cindy House 
| August 20, 2009 | 10:38 AM
With dealerships dropping out in droves, the goverment’s Cash for Clunkers auto rebate program is fizzling almost as abruptly as it took off less than a month ago.
The dealers are worried they won’t receive the reimbursements for Clunkers money they’ve already advanced to consumers. Some say they have received only one-quarter of the rebates they’ve filed for, and others haven’t received any money at all. The National Automobile Dealers Association is telling its members to be wary of making additional Clunkers deals because of “a growing risk that they may not be reimbursed.”
Yes, that’s right, the program is almost out of funding — again. An announcement on the official end of Cash for Clunkersis expected today or Friday. The Transportation Department says it has processed 37 percent of the rebate applications it has received and is assuring dealers that they will be paid. But it also threw some of the blame back on the dealers, saying problems with the information submitted is causing some of the delays.
In the meantime, GM is offering advances to dealers to help them manage cash-flow issues while they wait for the rebates to arrive.
Dealers were allowed to begin filing for Cash for Clunkers rebates the last week of July, but they were allowed to make deals with consumers under the program beginning July 1. The program was wildly popular among buyers, and its initial $1 billion was quickly exhausted, sending Congress scrambling to pour $2 billion more into the program before its August break.
Data released Wednesday show that 435,102 Cash for Clunkers deals have been submitted to the government for reimbursement, for a total of $1.81 billion.
automobile, cash for clunkers, dealerships, gm, rebates
