Auto Finance in the Know

It seems as though the Cash for Clunkers program is facing new obstacles. Following additional government spending, the National Automobile Dealers Association has begun urging the government to shut down the CARS program immediately.

The NADA believes that the brisk sales triggered by the Cash for Clunkers program has made dealers weary of exhausted funding. With so many cars being sold through the program, Framingham Infiniti dealers say the NADA is rightfully concerned about the program’s $3 billion budget.

Car dealers have generally liked the influx of new customers that the program has helped bring in explains Pittsburgh Cash for Clunkers dealers, but there are still lingering concerns and doubts. Reports have suggested that the majority of dealers are still waited for delayed payments by the federal government. Regardless Transportation Secretary Ray LaHood has attempted to reassure dealers, claiming that all dealers will be reimbursed and that there are plenty of funds available still to ensure that will happen.

With an enormously bureaucratic system, the reimbursement period has taken longer than expected for many dealers. Despite reassurances, the NADA is still concerned that car dealers will not get paid, which would add insult to injury say New York Dodge dealers as many dealers continue to struggle amid a weakened economy.

Despite reassurances, car dealers are still expressing concerns over the Cash for Clunkers program, and are pushing for a suspension at the very least. For a program that’s still relatively new, it’s facing a second suspension which doesn’t bode well for the program’s longevity.

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The saga of Cash for Clunkers continues, but for how long?

Tags: cars, cash for clunkers, nada

This entry was posted on Thursday, August 20th, 2009 at 9:38 pm and is filed under Auto Finance News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.