View Full Version : Government to stop ‘cash for clunkers’
crowe
07-30-2009, 05:11 PM
Government to stop ‘cash for clunkers’
http://www.msnbc.msn.com/id/32228179/ns/business-autos/
:eek:
Granch
07-30-2009, 05:21 PM
Just read that too!
gotta get in my last ones tomorrow..
So does that mean that you can still do CARS deals until Friday at midnight?
It's interesting to read that based on a quick survey of 2,000 dealers by NADA it's possible that there are enough deals pending entry into the system to completely exhaust the $1 Billion fund.
As I mentioned in another thread, you couldn't ask for a better closing tool. :)
zohpy
07-30-2009, 05:50 PM
I just read that story as well. Better get those deals in ASAP.
crowe
07-30-2009, 05:57 PM
UpdateThe Transportation Department called lawmakers' offices to alert them to the decision to suspend the program at midnight Thursday.
Welcome to the car biz Uncle Sam, what a crock, these guy's don't have a clue!
UpdateThe Transportation Department called lawmakers' offices to alert them to the decision to suspend the program at midnight Thursday.
Welcome to the car biz Uncle Sam, what a crock, these guy's don't have a clue!
That's amazing - that's only 3 hours notice. :mad:
SHACOS
07-30-2009, 06:41 PM
I think the program was a success. Time to pump more money into the program.
Horrible planning, but that's expected out of Washington.
CL Pgh
07-30-2009, 06:54 PM
Can't even sign in now! :mad:
Internet Explorer cannot display the webpage
crowe
07-30-2009, 07:21 PM
The government already axed thousands of dealerships through GM & Chrysler. Is this the next cut?
The government already axed thousands of dealerships through GM & Chrysler. Is this the next cut?
To their credit, the White House did issue a statement which should put customers and dealers at ease.
A statement issued Thursday evening by the White House said: “We are working tonight to assess the situation facing what is obviously an incredibly popular program. Auto dealers and consumers should have confidence that all valid CARS transactions that have taken place to date will be honored.”
Here's a link to the story that appeared in the New York Times - click here (http://www.nytimes.com/2009/07/31/business/31clunkers.html?hp)
Part of me wonders if NHTSA wants to slow this process down because they don't have the manpower to process all the CARS claims and still be able to honor the 10 day payment they were touting? :confused:
In the WSJ story earlier tonight they interviewed a mega-dealer who said he stopped doing CARS deals when he reached 100 vehicles - he didn't want to be sitting on $400K+ waiting for payment.
Txflyer
07-30-2009, 07:59 PM
Still scares me sh*tless. I'm going back up to the dealership to try and put in our transaction from today. Afraid that tomorrow morning the system will be shut down. Nothing the White House says gives me any assurance these days.
Still scares me sh*tless. I'm going back up to the dealership to try and put in our transaction from today. Afraid that tomorrow morning the system will be shut down. Nothing the White House says gives me any assurance these days.
That's probably a great idea.
Even if the system is still open tomorrow morning, it's a safe bet there will be so many dealers trying to input applications that the server will have problems again.
UpdateThe Transportation Department called lawmakers' offices to alert them to the decision to suspend the program at midnight Thursday.
Welcome to the car biz Uncle Sam, what a crock, these guy's don't have a clue!
Here's a link to a report in The Washington Times indicating that the CARS program will be suspended at midnight tonight - click here (http://www.washingtonpost.com/wp-dyn/content/article/2009/07/30/AR2009073004122.html)
Here's an excerpt from the report: Transportation Secretary Ray LaHood called members of Congress on Thursday night to warn them that his department would suspend the Car Allowance Rebate System at midnight Thursday because of those concerns, congressional sources said.
Txflyer
07-30-2009, 08:15 PM
If this mess doesn't serve as an example of why the govt shouldn't manage healthcare (or anything else for that matter) I don't know what will.
CL Pgh
07-30-2009, 08:42 PM
I'm going back up to the dealership to try and put in our transaction from today.
Good Luck on getting logged in… I still can’t! Loaded all my pdf files onto a memory stick and have been try’n to log in every 30min or so from home… nothing.
No Way can they screw the Dealers & the Consumers (here’s weird companions) after only one week into the official launch… it would be political suicide! I’m tired as hell already, tomorrow is going to suk and I’m going to bed. :sleep: Enough is enough!
Sleep tight Oldco… I can hear you laughing at me now! :thumbsup:
If this mess doesn't serve as an example of why the govt shouldn't manage healthcare (or anything else for that matter) I don't know what will.
X2 here!
Txflyer
07-30-2009, 09:04 PM
Guess I got lucky - I got my claim accepted.
I don't care if they start it up again in the morning and fund with another billion - not selling any more until some $$$ hits my bank account.
mopar4life
07-30-2009, 09:08 PM
I finally got logged in to do our "first" invoice @ 11:15pm and took until midnight to just get to the attachment section (very slow) at which point the site went down! Nothing like aging all of us in the car biz by 10yrs this week only to have this bull happen!
mopar4life
07-30-2009, 09:10 PM
This was the email message I received at 9pm tonight from our MABC director:
I've never seen anything like this - if it's true,and I'm now told it is. WE have until MIDNIGHT to report ANY and ALL Cash for Clunker deals.
A communication is being readied by Auburn Hills.
IF YOU CAN REPORT YOUR C4C DEALS TONIGHT - PLEASE DO SO!!!!!!
I apologize, being the messenger, but I cannot stomach holding it in after calling 30sec ago.
I know there are many issues including those that don't have activation codes. It's a code red in Auburn Hills and every OEM is scrambling to communicate tonight.
PLEASE DO YOUR BEST to Report Sales tonight that are eligible. Please apply for any C4C government incentive immediately.
It's a code red in Auburn Hills and every OEM is scrambling to communicate tonight.
PLEASE DO YOUR BEST to Report Sales tonight that are eligible. Please apply for any C4C government incentive immediately.
Wow, I wonder what Chrysler knows that the dealers and customers don't know? :confused:
According to the statement from the White House, CARS deals that have already been done will be honored - even if they have not been entered in the system yet. The message from Chrysler suggests that dealers who do not get their CARS claims input tonight will be vulnerable.
Tomorrow should be an interesting day.....
Sleep tight Oldco… I can hear you laughing at me now! :thumbsup:
CL - I love your sense of humor. I just hope possum, dodgequality and U&A get a chance to see this post. :)
jdemonto
07-30-2009, 09:57 PM
Poor SOBS....LOL
I had a customer call at 8:30pm, just called back and he's at the store trying to buy a Dodge...LOL. I told my boss and he said tell him we are closed. Just got off the phone with the customer and said I am here trying to buy a car.....LOL
I will hear it tomorrow.....maybe I will buy some beer now
Jason
possum
07-31-2009, 05:02 AM
Its very peaceful in the Oldco Nation, we just buy and sell what we want.
Anyway, what scares me is that if this program works, and it seems to be, this could be car selling of the future! This could end up being the way it is. THAT IS SCARY!
I hope we are not in a world of "Gov't Motors" !
crowe
07-31-2009, 06:15 AM
I think the truth is they have no idea how much money is left or how many C4C transactions have occurred. Their system could not handle the over complicated process they created. Late yesterday they posted the site showing that the vast majority of funds still remained while it appears at the same time alerting congress they were out of funds. I believe dealers will be funded on qualified deals. But I do not believe the current system will be able to handle the transactions that have already occurred in a timely manner.
The government should fund the manufacture with the stipulation they fund the dealers immediately. The manufactures are setup to fulfill this program’s requirements in a more timely & logistical manner.
SHACOS
07-31-2009, 07:37 AM
Its very peaceful in the Oldco Nation, we just buy and sell what we want.
Anyway, what scares me is that if this program works, and it seems to be, this could be car selling of the future! This could end up being the way it is. THAT IS SCARY!
I hope we are not in a world of "Gov't Motors" !
I was just going to bring up that point as well, possum. I'd hate to see the car industry turn into a heavyly subisidized mess like Amtrak.
Poor SOBS....LOL
I had a customer call at 8:30pm, just called back and he's at the store trying to buy a Dodge...LOL. I told my boss and he said tell him we are closed. Just got off the phone with the customer and said I am here trying to buy a car.....LOL
I will hear it tomorrow.....maybe I will buy some beer now
Jason
That's so sad that it's funny. A customer going to a Dodge Dealership when it's closed for the night trying to buy a car - who would have thought that would be happening two weeks ago?
The only thing that would make the story better is if you told us he was hoping to buy a Caliber. :rolleyes:
I believe dealers will be funded on qualified deals. But I do not believe the current system will be able to handle the transactions that have already occurred in a timely manner.
I totally agree, in fact I've wondered if that was part of the agenda to slow this program down.
We already know that the CARS servers can't handle the load when dealers submit claims, why should we think that the approval/payment process will be any better?
My bet is that CARS receivables will be the next major headline within the deal community. There's already a story in Automotive News where a dealer had his CARS claim rejected because one document showed a customer's first name as "Dan" and another showed "Daniel."
Txflyer
07-31-2009, 12:20 PM
My bet is that CARS receivables will be the next major headline within the deal community. There's already a story in Automotive News where a dealer had his CARS claim rejected because one document showed a customer's first name as "Dan" and another showed "Daniel."
Probably because the guy paying the claims in Bangledesh didn't know that "Dan" is short for "Daniel". ;)
A report in the L.A. Times indicates that Senator Reid is confident that the CARS program will receive another $2 Billion in funding when the legislation is voted on later this week.
He further stated that he thought the extra funding would be sufficient to run the program through Labor Day.
Here's a link to the L.A. Times report - click here (http://www.latimes.com/business/la-fi-clunkers5-2009aug05,0,4724324.story)
possum
08-04-2009, 01:49 PM
This will funnel a lot of money to the imports, as most domestics inventories are too low to sell.
This will funnel a lot of money to the imports, as most domestics inventories are too low to sell.
I agree, I'd really like to see CARS offer Sold Order Protection but I haven't heard about any efforts to make this happen.
Based on the story in Automotive News, Chrysler has less than a 20 day supply of the Compass, Caliber and Avenger.
dafuzz1956
08-06-2009, 04:51 AM
What a pain in the .....
I have 3 in limbo and customers calling every day when can I pick up my car?
We decided not to deliver (physically) until we get the money ok, is that what everyone else is doing?
Also, I agree with the statement about health care, something has to happen but keep the Obama's out of it, OMG :eeek:
WillSD
08-06-2009, 05:39 AM
We have three under review also. All have been delivered with an agreement that any rejected vouchers will be reimbursed to the dealership. One of the deals was a retail order placed before the C4C program; the customer is a local family farm and they had a clunker which originally would not have been traded. C4C was pure gravy for them (and a PITA for us).
The latest news report indicates that the Senate will vote on providing another $2 Billion for the CARS program this evening. The legislation is almost certain to pass without any amendments.
I thought it was interesting that an official from GM predicted that the extra funding could allow this program to run for another four months. A number of reports have suggested that the surge in clunker deals has subsided and sales will return to a more normal level.
Here's a link to the USA Today news report - click here (http://www.usatoday.com/money/autos/2009-08-05-cash-for-clunkers-vote_N.htm)
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