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NADA: Just 5.7% of Clunker claims paid; 6.3% rejected
By Andrew GanzThe 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.”
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Related News
- Government: Clunker claims complete Posted September 25th
- NADA responds to President Clinton’s call for ’100 trucks for Haiti’ Posted February 1st
- Automakers, dealers scramble on news of struggling Clunker program Posted July 31st





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