Roughly two-thirds of U.S. dealers are still waiting on their first check from the government’s cash for clunkers program, which has prompted General Motors to step in with some dealer aid. GM announced a new program on Thursday that will advance dealers a 30-day, interest free loan on current clunkers applications.
The backlog of clunkers applications has slowed federal payments to a trickle, leaving many dealerships with cash flow issues. In order to ensure dealerships can stay up and running, GM has announced it will float its dealers a 30-day loan to keep sales moving.
“Our sales performance in the past two months has exceeded our internal forecast by over 60,000 vehicles, largely driven by the CARS stimulus program,” said Mark LaNeve, VP of U.S. Sales. “We want to do all we can to provide customers with timely new vehicle deliveries and dealers the liquidity they need to run their businesses.”
GM will grant dealers a loan on any clunkers application, regardless of the application’s position in the approval process. If the dealer does not pay back the loan within 30-days, GM will deduct the loaned amount from the dealer’s open account with GM, according to Automotive News. GM will continue the program until the conclusion of the CARS program.
08/20, 11:32 AM
posted by:
DenverGuy217
Good job GM!
08/20, 11:40 AM
posted by:
Bosley
How can the government screw up a free money giveaway?……Seems like they’re perpetuating the stereotype that governments are inherently slow at processing paperwork, for whatever reason (ensuring the conditions are met). Organization at its best……
“Lets make the dealers wait, they don’t have enough problems anyways”….. 
08/20, 11:43 AM
posted by:
armstealer
I feel for you small dealers out there… The more I read about the CARS program, the more it seems like it was set up to thin out the dealer chain.
08/20, 11:44 AM
posted by:
armstealer
^Looks like Bosley beat me to it
08/20, 12:01 PM
posted by:
idrinorbarsaku
i think this has happened on purpose so that money will stop going to foreign dealers, which would stop them from offering CFC, fearing that they would not be getting their money, which would make them lose customers and make them go to GM!
08/20, 12:12 PM
posted by:
leftwingagenda
meh…any system that is overwhelmed with much more interest than anticipated is going to have issues…contrary to what borat may believe, this could be an example of how the gm/government relationship can work to smooth out a problem…
08/20, 12:30 PM
posted by:
johnnycanuck
Oh sure, after decades of opposing the government on virtually every issue concerning the advancement of the automobile GM is suddenly stroking their new ‘buddy’ like it was Brokedick Mountain. “Smooth” isn’t exactly the word I’d be using.
08/20, 12:46 PM
posted by:
elviososa
so….is this another form of money giveaway since GM is own by the gov. now.
08/20, 12:46 PM
posted by:
RaineMan
So the Govt. is essentially paying the Govt. here.
08/21, 8:11 AM
posted by:
Borat
Johhny, do you know some details about Putz the rest of us unaware? Hm, Brokerdick Mountain, that would explain a lot, how come I have’t thought of it.