Wednesday, August 19, 2009

No cash for clunkers?

I just watched a report on Bloomberg Television about the Cash for Clunkers program.
People are concerned the surge in car sales won't last after the program ends.
What the national media is not reporting (as far as I know) is what I learned when I did a local news story on the program two weeks ago.
At that time, virtually none of the new car dealers in Montgomery County, Ind., had received a dime from the program. They were making buyers sign forms that stated the buyers would pay the $4,500 promised by the government if the money didn't come through for whatever reason.
All the dealers had problems sending in the required forms over the Internet. The Chrysler dealer said his people were going in all times of the day and night one weekend to send the forms for the cars they had sold up to that time.
Another dealer was concerned about cash flow because it would be difficult for his dealership to carry tens of thousands of dollars on their books while waiting for the Feds to pay up.