The Cash-for-Clunkers program is going to be losing hundreds of New York area participating dealerships, according to the Associated Press. The Greater New York Automobile Dealers Association said that approximately half of its 425 member dealers have ceased participation in the program, due to the financial inability to offer more rebates, and worries concerning repayment.
The program has been experiencing administrative backlogs that have been delaying repayment to dealers; an effect that can be catastrophic to a small to medium sized proprietor in an industry where cash on hand is essential to continual operation.
Mark Scheinberg, the group’s president said that the dealers in his groups have thus-far only been paid on about 2% of rebates issued, and many are worried that they won’t see any money at all.
“The program is a great program in the sense that it’s creating a lot of floor traffic that a lot of dealers haven’t seen in a long time,” he told AP, “But it’s in the hands of this enormous bureaucracy and regulatory agency,” he added. “If they don’t get out of their own way, this program is going to be a huge failure.”
– By: Stephen Calogera