Cash for Clunkers Administrative Nightmare, a Preview of Government Run Health Care


The Clunker program is truly a CLUNKER!

The lesson learned when dealing with any government run program … use at your own risk. The Wheres_the_beefCash for Clunkers program was a $1 billion, now $3 trillion government program. It was bean nothing short of a cluster, in premise and in practice. Imagine, just imagine when a $1.5 trillion health care program is run by the government?

The Cash for Clunkers program has been nothing short of an administrative nightmare. This program has been nothing short of a processing joke as it began late, crashed computers, web site was difficult to follow and ran out of money before the program started.

Now we learn that dealerships are not being paid by the government. Imagine that. A government run program that was first under funded and now appears to be under staffed to process the paper work for the Clunkers program. Who’s left holding the bag? The dealerships. As Blue Crab Boulevard calls it, “Nothing for Clunkers”.

A growing number of auto dealers say the process of getting paid under the government’s “cash for clunkers” plan increasingly resembles some of the wrecks accumulating on their lots as part of the program.

The slow payments coming from the federal government are reinforcing the paradoxical nature of the program for dealers: It has generated the most showroom traffic they have had in months while at the same time heaping unease, frustration and worry onto the industry’s worst-ever downturn.

As of the close of business Friday, there was talk in the industry that some dealers are considering pulling out of the clunkers program altogether.

“A number of dealers have floated $100,000 to upwards of $1 million or more” on the clunkers program, said Bill Sepic, president of the Wisconsin Automobile & Truck Dealers Association.

Dealers say they want to see at least some sign that they will be able to recoup that money. Still others need the money to pay bills and meet payroll.

The Dealerships signed on to this government program in good faith and now find none of their “clunker” deals being paid. “They rolled the program out and told us we’d get paid in 10 days. It’s been three weeks,” said Jim Griffin, who owns dealerships in Milwaukee, Waukesha and Menomonee Falls.

We all know what would happen if “WE” didn’t pay the government in the contracted time limit don’t we. Compare the disastrous administration of the clunkers program to a government run health care system. If it were handled in the same manner, doctor’s offices, hospitals, drug stories, etc would be shutting down because they would be getting reimbursed for nothing.

If the government is not capable of handling a program so small, how could they ever handle one that would be 1/6 of the US economy? Do you want to trust them with your health care?

UPDATE I: NY Dealers Pulling Out of “No” Cash for Clunkers Program

What a typical government give away program. Can these people get anything right? In perfect socialist, government give away fashion, the Clunkers program had among many flaws, one gaping one … actually paying car dealerships their money. Who cares about the car dealerships and private enterprise when this is about a give away? The government has responded far too slowly to the needs of this program, I wonder how they will respond to a brain tumor?

Hundreds of auto dealers in the New York area have withdrawn from the government’s Cash for Clunkers program, citing delays in getting reimbursed by the government, a dealership group said Wednesday.

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. They’re also worried about getting repaid.

Oh those whiney dealerships wanting to be paid for their services so they can meet payroll … think anyone in government really cares? This program was never about a payment to dealerships, it was about “We the People” subsidizing other Americans so they could feel good about themselves and buy a new car.

If you liked this post, you may also like these:

  • Cash for Clunkers Program Turns Out to be a Clunker … Tax Payers Pay $24,000 Per Car
  • Only 39% Approve of Cash for Clunkers Program for Appliances … What Next Cash for Trash?
  • 54% of Americans Oppose “Cash for Clunkers” Plan … Next up Cash for Dunkers
  • Cash For Clunkers … Stimulating the American Economy or Foreign One’s? 54% of Americans Against It
  • Barack Obama and the Democratic Keystone Cops House & Senate … Government Suspends Cash for Clunkers as it Runs Out of Money

  • Comments

    8 Responses to “Cash for Clunkers Administrative Nightmare, a Preview of Government Run Health Care”

    1. buster on August 16th, 2009 9:43 am

      It’s just a preview for the next 3.5 years we have ahead of us

    2. idiot patrol on August 16th, 2009 11:16 am

      Dire Straits will be singing a new song, “Money for Nothing and Clunkers for Free”.

    3. nurturer on August 16th, 2009 2:02 pm

      Many people are going to be without wheels in the months to come. People unwittingly, or stupidly put themselves into debt for a car they more than likely didn’t even need. Then, as unemployment rises, and some of these same people end up with no income, the repo guys will go to work. Old car gone. New car gone. And no way to get around for that job interview, if there is one.

    4. Michelle Smith on August 16th, 2009 5:21 pm

      #3 Yep…I said that very thing on a previous post. It’s just like what happened with the housing industry. People bought homes they could not afford because the incentive was good at the time and then bam, foreclosures. Will be the same with the cash for clunkers. People are trading in their old vehicles for new ones that they cannot pay for because of an incentive and them bam repo time.

    5. Greg the Mongoose on August 16th, 2009 7:24 pm

      What give up my American made V-8 for a death trap that gets good miles. :-)

    6. SUPER DAVE on August 17th, 2009 7:00 am

      thanks, but no thanks ,i’ll keep my v-8 hemi 4×4 3/4 ton.

    7. on August 17th, 2009 11:15 am

      ah yes #3 and #4 but just like we have money to bail out foreclosures so they can turn around and go back into foreclosure – we probably will end up with the same thing with Cash for Clunkers program. Remember, this isn’t about cars or health care or houses – it’s about redistributing the wealth.

      Years ago when the Government ran the Champus program – those entitled to military health care who weren’t within a certain distance of military bases could seek health care from private doctors – I use to have to keep a spread sheet of the bills I’d submitted versus those that had been paid, sometimes only partially, and then after 120 days resubmit all the claims that had not been paid. It was an absolute nightmare. It always took at least 60 days to get reimbursed.

      And is everyone aware that the Cash For Clunkers requires 137 pages of documentation just to get reimbursement?

    8. Cars4Charities on August 19th, 2009 5:16 pm

      New car dealers can now join the growing list of businesses hurt by cash for clunkers including used car dealers, auto repair shops, auto parts dealers,car donation charities, etc.

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