NEW FUTURE MARKET
  • NADA: Just 5.7% of Clunker claims paid; 6.3% rejected

    By Andrew Ganz

    The National Automobile Dealers Association says that, more than a week after the Cash for Clunkers program ended, a mere 5.7 percent of all vouchers on traded-in older vehicles have been paid to dealerships. The group took a survey of four states, but says that the numbers accurately reflect the nation as a whole.
    “The program administration has been a disaster, and it’s killing the dealers,” Rep. Pete Hoekstra, R-Mich., said in an interview, according to Automotive News. “The government has overly complicated the process. They’re running it like the IRS, where you’ve got to dot every ‘I’ and cross every ‘T’ precisely or they’re not going to give the rebate.”

    The NADA study also indicated that nearly 84 percent of all applications for vouchers submitted by the nation’s dealerships are still under review.

    Perhaps even more surprising, about 6.3 percent of all claims submitted so far have been rejected, according to Massachusetts State Automobile Dealers Association executive vice president Robert O’Koniewski. Since dealers have already taken the vehicles in on trade and completed transactions with customers, it remains unclear what will happen to disqualified “clunkers.”

    “Dealers are starting to worry that they may not get paid for some of these claims,” Hoekstra said. “Deals are being rejected with no reason given.”

    28 COMMENTS

    1. photo
      Smegley Wanxalot330 days ago

      Stiff – aDeeeDoooDaahhhh
      Stiff – aDeeeAaaaaayyyy
      Uncle Sam’ll take your money away,
      Trust in your gov’ment, your ass’ll get raped,
      Stiff – aDeeeAaaaaayyyyyyyyyyyyy

    2. photo
      savedsol330 days ago

      “What are the nine words every American fears – I’m from the government and I’m here to help”
      -Ronald Reagan
      Truer words never spoken

    3. photo
      Bosley330 days ago

      I love how the comment they give is from a Republican, no partisan politics there…. What he’s really thinking…. “The (Obama/Democratic) government has overly complicated the process.” He’s not wrong, but would ‘they’ (ie republicans) be doing any better? Not likely in my opinion. they’re the one’s that got us into this mess (in part)…..

    4. photo
      whoopeedoo330 days ago

      wait till the doctors have to get their checks next year!
      look out

    5. photo
      jayjc08330 days ago

      bosley- It wasn’t just republicans or just democrats that got us in the place. As far as I am most people are concerned their all crownies. Making the difference is a very thin line…

      Anyways, this is ridiculous. Only 5.7% of claims paid? They should have known this was coming, after other somewhat similar programs in Europe and the return on those. They originally hired what, 50 staff members? Did they expect only a few hundred claims?

    6. photo
      05Z88Path330 days ago

      Welcome to the efficiency of a government run program….

    7. photo
      2WheeledSpeed330 days ago

      Democrat or Republican, this is what happens when you let career morons run a country.

      What a flipping joke…

    8. photo
      ToxicNut330 days ago

      Any of you work at a new car dealer? I do and can tell you that they SHOULD have known that some would be rejected because THEY may have not filled out the paperwork properly OR completely. Happens almost every day at the dealers where sales managers don’t pay attention to detail (most of them). I have been in the business for over 20 years, same crap at almost all of them.

    9. photo
      2WheeledSpeed330 days ago

      Oh it’s not the 6.3% that got rejected that’s bad ToxicNut, it’s the almost 84% that our lovely Gov’t hasn’t even gotten around to yet.

    10. photo
      Sgt Pepper330 days ago

      Paper work wrong or they took cars in trade not on the list. That would be a big DOH!! If the dealers weren’t so retarded they could fill out the paper work right. How is this the Governments fault?

    11. photo
      johnnycanuck330 days ago

      So what exactly happens to the dealer who took in a clunker, paid out the rebate to the customer, turned the clunker’s engine into a doorstop and then finds out the claim is rejected?

      I guess it would be like doing a hooker with an STD- you get screwed twice on the same deal.

    12. photo
      spg900330 days ago

      Keep moving along folks , nothing to see here , just keep moving. LIKE ANYBODY SHOULD BE SURPRISED !

    13. photo
      psiclone330 days ago

      A guy was being interviewed yesterday on the radio. The dealership has not yet mailed him the title to his car because they have not yet been reimbursed by the government. He has three children to take to school before needing to commute to work. He can’t legally insure or drive the car. What an absolute mess. Other dealerships are owed millions of dollars and are headed for disaster. This bright idea will do anything but stimulate the economy. In fact, in many respects it is hindering it further.

      Yes, both side of the isle have screwy people on board but it’s this current democrat-run congress and administration that want to change America, starting with the implementation of government managed health care. I can’t believe people are trying to blame this problem on the dealerships. The huge gorilla in the room that is being missed is the 88% of participants that haven’t been paid and now find themselves looking to the government to provide for their need because they trusted in a glitzy, shiny government offer for help. Can this be spelled out any clearer? This is a prime example of government run programs – at a time when this administration is doing its best to look capable. The democrats also tried to ‘manage’ the mortgage industry to infuse some artificial fairness. We are suffering through the results. I certainly don’t need any more examples of failure.

    14. photo
      armstealer330 days ago

      THE POINT IS MORE HAVE BEEN REJECTED THAN ACCEPTED.

    15. photo
      oldraven330 days ago

      And the car dealers probably don’t give a damn, so long as they moved metal in August. If they don’t get the C4C rebates, then they just have to look at it like another discount to the customer. I’m sure many knew this would happen, after hearing about so many people trading in cars that didn’t qualify to begin with.

    16. photo
      chaetophile330 days ago

      armstealer, read it again.
      5.7% of the total number of claims have been paid.
      6.3% of the claims that have been reviewed have been rejected.
      That’s much much less, not more.

    17. photo
      A4330 days ago

      Great. Watch the dealers line up to participate in the program next time it is needed. What a joke, America.

    18. photo
      JakeK66330 days ago

      Well, all I can say is this is yet another reason why you can expect change in leadership in january of 2013. Ah, how those who expected another Jimmy Carter with his Democrat majority in both houses. I’ll even admit that I didn’t want this to happen, it’s not in our country’s interest. If he could have fixed things, I’m all for it, still, but, really, it’s never going to happen. Even liberal Jon Stewart has said that a Democrat-powered everything isn’t good, we all see how well the last time it happened went.

    19. photo
      S2L2SC329 days ago

      Just watch for some of the dealers starting to file for bankruptcy. I see another auto bailout in the works.

    20. photo
      Smegley Wanxalot329 days ago

      What’s sick here is that, of all the 12% clunkers processed, more than half have been rejected. 6.3% rejected while 5.7% approved. That means the dealers are going to suck up $1.65 billion in losses given the $3B budget.

      So anyone who says they are not getting stiffed by Uncle Sambama is kidding themselves.

    21. photo
      carstuff329 days ago

      More misinformation smegley. Half have not been rejected. 6.3% of those processed have been rejected. That means that about 94% have been accepted. AND of those 6.3% many can be reapplied and most likely most will get the money once they put in the needed info.

      Not making excuses for our government but just tired of folks using misinformation to make their point.

    22. photo
      armstealer329 days ago

      I read it a dozen times and I’m still confused.

      Is it 6.3% of all claim forms filled out and sent in by dealers?

      or is it 6.3% of the claim forms that the staff has actually gotten around to processing?

    23. photo
      Long Dong Auto329 days ago

      Cash for Clunkers – a window into the future of health care…

    24. photo
      leftwingagenda329 days ago

      armstealer, if they’ve gotten a good part of the way through the apps, the percentage is unlikely to change drastically…that’s how sampling statistics work…we don’t know how far they are through the pile of apps, though…they could be entirely done, but payment may be the choke point, who knows…

      i think a lot of the bellyaching done here is quite unrealistic…but hey, if you want another government that starts trillion dollar unnecessary wars, erodes your privacy, and sucks the collective cack of the oil services industry, go right ahead…

    25. photo
      shaver329 days ago

      Correct headline:
      Amazingly 93.7% of processed apps have been approved, yet dealers who new they would have to wait months for their subsidy checks bitch anyways. The dealers did not have to participate in the program, they new exactly how this was going to go. Now that the party is over they have a hangover.

      Unbelievable support on this site for the c0cl< sucker dealers.

    26. photo
      ToxicNut329 days ago

      I agree shaver! And for the rest crying about Democrats, what was the republic plan? Go ahead now tell us. Oh, you can’t. Well they did have a plan…BK for the little two. That was the answer from them, BK and liquidate their assests. Then there would have been NO dealers to whine about slow payment. Take the choice of poisons, one leve to fight another day the other go away.

    27. photo
      TL329 days ago

      Fail!

    28. photo
      psiclone329 days ago

      If any of the comments above were directed at me, I’m not necessarily defending the dealerships. But what exactly would be wrong with doing that? And, if this was still the Bush administration, I wonder just how much support some of these individuals on here would still be giving the government.

      My point was only that this is a classic example of what happens when the government tries to fix things. So what if some of the dealerships were quick to buy into the program. There’s nothing wrong with that. And, it would seem that that is exactly what the program’s proponents intended it to do. Incite an artificial demand-driven increase for business. Similar to the government’s motivations behind the mortgage lending industry tinkering that contributed to the implosion that occurred. But the bigger point is that there are plenty of American citizens that will also be quick to buy into these other proposed programs, just as their promoters intend as well. Problem is, by the time those that are tempted realize that there is a hook in the bait, the trap has been sprung and the government has created a new group of dependents. The shiny promise is the stimulation of business. The results are frozen funds, stagnated business and billions of citizens’ dollars invested. History shows that the economy works best when those that don’t generate any of it stay out of its way. When you stop and think about it, we probably won’t even begin to pay China back for that program for several decades. Although, we will be paying them plenty of interest.

      By the way, ToxicNut, some republicans did have a plan (namely Mitt Romney). And you’re right, it was BK. Precisely what this administration ultimately supported and got right in the middle of. However, Mitt Romney was ridiculed and attacked at the time for suggesting such a heartless thing. Vastly under reported, the crucial difference between the democrat and republican plans for BK could be summed up primarily in the timing. Republicans wanted it to occur BEFORE we the citizens bought a majority stake; whereas the democrat plan held off until billions were invested and majority ownership was acquired while simultaneously causing all sorts of abnormal imbalances in the business world.

      Leftwingagenda, although I’ve noticed our auto news related opinions frequently concur, I perceive we couldn’t be farther apart on our political views. However, I just don’t have the strength at this time of night to address each issue in the last sentence of your post above. I’d love to another time.

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