Getting Stiffed for Clunkers – Surprise! The Gov’t Doesn’t Pay Their Bills!

Update: Cash for Clunkers to End

Is it really any surprise that the federal government is a little slow in repaying their bills? When everything the Government runs is Bankrupt, it’s a wonder that they pay anyone… except maybe with printed money.

Now, the famous ‘Cash for Clunkers‘ is on the rocks… Reports have come out that many of the car dealerships involved with the program have ceased it completely.

What ever could be the reason?? Well, the government (which still barely holds a AAA credit rating) is a little behind on their bills.

The section from the AP report is below…

NEW YORK (AP) – Hundreds of auto dealers in the New York area have withdrawn from the government’s Cash for Clunkers program, citing delays in getting reimbursed by the government, a dealership group said Wednesday.

The Greater New York Automobile Dealers Association, which represents dealerships in the New York metro area, said about half its 425 members have left the program because they cannot afford to offer more rebates. They’re also worried about getting repaid.”(The government) needs to move the system forward and they need to start paying these dealers,” said Mark Schienberg, the group’s president. “This is a cash-dependent business.”

The program offers up to $4,500 to shoppers who trade in vehicles getting 18 mpg or less for a more fuel-efficient car or truck. Dealers pay the rebates out of pocket, then must wait to be reimbursed by the government. But administrative snags and heavy paperwork have created a backlog of unpaid claims.

Schienberg said the group’s dealers have been repaid for only about 2 percent of the clunkers deals they’ve made so far.

Many dealers have said they are worried they won’t get repaid at all, while others have waited so long to get reimbursed they don’t have the cash to fund any more rebates, Schienberg said.

Now… if the government can’t run a simple cash rebate program for car dealerships? How in the world will they run the entire health care industry that represents 1/7th of our economy?

I’ll tell you how they will run it – Right into the RED!

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