NY dealers pull out of clunkers program

[BlackICE]

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.

"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 said.

"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."


http://finance.yahoo.com/news/NY-dealers-pull-out-of-apf-222731432.html?x=0

 

[Specracer]

And one wonders why people are concerned about gov healthcare.....

 

[BlackICE]

And one wonders why people are concerned about gov healthcare.....

An obvious conclusion that I didn't want to mention, since it wasn't auto related.

 

[Specracer]

ooops....

 

[ChipBeck]

IOU's for Clunkers

Gentlemen,

Businesses that deal with the federal government on a regular basis are aware that it takes forever to get paid. Medicare doctors and defense contractors would be two examples. Automobile dealers had no idea what they were getting into here. Those I have spoken to, thought that payment timetables would be similar to factory rebate programs. Many dealers with already weak cash flow positions after two solid years of abysmal business have been strained to the breaking point by "Cash for Clunkers". The Government bureaucrats administering this program are callous and indifferent to the dire plight they have put many dealers in. It's no skin off their back and not their problem.

Moderators Note

The Ford GT Forum is not the place to rail against the current Charley Fox operation going on in DC (other than items that affect the automobile business, which are always fair game here). Please keep those comments off the Forum as they are best made "in person" in your local congressman's office. Don't rely upon someone else to do the heavy lifting for you. Bony use to blast members on this Forum regularly for complaining instead of campaigning. Daniel was absolutely correct. Made in the proper venue and to the right people, such comments can change the future direction of this country. This is not the proper venue and all of our members already agree with you.

I'll see you in Texas! :cheers

Chip

 

[shelbyelite]

Gentlemen,

Moderators Note

The Ford GT Forum is not the place to rail against the current Charley Fox operation going on in DC (other than items that affect the automobile business, which are always fair game here). Please keep those comments off the Forum as they are best made "in person" in your local congressman's office. Don't rely upon someone else to do the heavy lifting for you. Bony use to blast members on this Forum regularly for complaining instead of campaigning. Daniel was absolutely correct. Made in the proper venue and to the right people, such comments can change the future direction of this country. This is not the proper venue and all of our members already agree with you.

I'll see you in Texas! :cheers

Chip

Well put! :thumbsup

 

[Nardo GT]

Agreed 110%

 

[dbk]

The clunkers program could end up being a huge disaster for many dealers because of the amounts outstanding. Someone local was saying that they had about $350k outstanding. These days, that's a big deal when you've got payroll, inventory and land to pay for. You'd hate to go out of business for selling too many cars :lol

 

[Nardo GT]

The clunkers program could end up being a huge disaster for many dealers because of the amounts outstanding. Someone local was saying that they had about $350k outstanding. These days, that's a big deal when you've got payroll, inventory and land to pay for. You'd hate to go out of business for selling too many cars :lol

As Chip stated: The price to pay for dealing with the gov't.:frown I am fairly confident they WILL get paid....just when is the issue. But you shouldn't get in the kitchen if you can't stand the heat. Typical gov't "procedure".:bs Surely these dealers didn't expect to get paid quickly..........I'm starting to feel surrounded again.....where are my meds:ack

 

[FB GT40]

Clunkers

See "I got Mine"...worked like a charm! Yes, I did.

Thank you Mr. Obama! And all my friends...who are tax payers! Probably the last time I can say that!

 

[FB GT40]

Clunkers

See "I got Mine"...worked like a charm! Yes, I did. :cheers

$ 8.5 k off a Ford Ranger. Thank you Mr. Obama! And all my friends...who are tax payers! Probably the last time I can say that!

 

[gtjoey]

Wait a minute, did I get this right...YOU GOT A CLUNKER DISCOUNT...:lol:lol:lol:lol
YOU KNOW THERE GOING AFTER ALL THOSE OFFSHORE BANKS MY FRIEND...AND SWISS ACCOUNTS TOO.....:lol:lol:lol:lol:lol:lol:lol:lol
GTJOEY 1314

 

[THamonGT]

I visited with a local Ford dealer friend today and he told me he had sold 350 vehicles as of this afternoon on the "clunkers for cash program" in the last 2 1/2 weeks and stopped the program as of 6:00 pm today. He has $1,530,000 outstanding as a receivable and has not collected any payments as yet. He wholesaled all 350 trade in's to one wrecking yard today for $50.00 each. He is afraid he will not be able to make payroll if not paid soon. He can't dispose of the trades until he gets paid for each one as the deal is accepted as "a good deal and payable". How would you like to 1.53M out in space during these difficult ECONOMIC TIMES???? I'm glad I retired as this deal would have put me out of business.Tomy Hamon

 

[Nardo GT]

I visited with a local Ford dealer friend today and he told me he had sold 350 vehicles as of this afternoon on the "clunkers for cash program" in the last 2 1/2 weeks and stopped the program as of 6:00 pm today. He has $1,530,000 outstanding as a receivable and has not collected any payments as yet. He wholesaled all 350 trade in's to one wrecking yard today for $50.00 each. He is afraid he will not be able to make payroll if not paid soon. He can't dispose of the trades until he gets paid for each one as the deal is accepted as "a good deal and payable". How would you like to 1.53M out in space during these difficult ECONOMIC TIMES???? I'm glad I retired as this deal would have put me out of business.Tomy Hamon

Some wrecking yard got a helluva deal. Just the metal is worth more than double that even with seized engines. Quite a few of the "clunkers" are actually nice cars. A dealer friend of mine bought a 1998 Chev pu, 59K actual miles, grandpa type truck with a fiberglass bedild in immaculate cond that was traded in on "the "clunker" program. The new car dealer said he could have it for $4K even though he could get $4500 from the govt, but would have to wait on the money. The dealer does not HAVE to sell it thru the gov't program....but they do if they want the full $4500 (seize the engine, sell to salvage yard etc). From what I've seen quite a few of the cars/trucks would stand on their own in the $2K-$4K area wholesale. Not all are $100 "clunkers" by any means.

 

[ChipBeck]

0 for 40.

The new car dealer said he could have it for $4K even though he could get $4500 from the govt, but would have to wait on the money.

Gentlemen,

All governmental rules and regulations are marketplace distortions. If they weren't, the rules wouldn't be necessary. Every one of these distortions result in increased costs and lower efficiency.

Most clunker deals cost US taxpayers $4500 to provide a buyer subsidy that often amounts to less than $1000. None of these trade-ins have a wholesale value of zero. Many buyers are stunned when they find out that the clunker they are trying to cash in for $4500, has a wholesale value of $6,000!! Even if you're clunker has a wholesale value of $2500 and you come out ahead by accepting the US government's $4500 offer to seize the engine and junk your trade in, taxpayers just paid $4500 to provide you with the benefit of $2000. This is no way to run a railroad and a plan such as this can only be considered rational when the people who engineered it are not paying for it.

I received a letter from one of my best friends today. He told me that his Ford dealership in Santa Margarita, California has done about 40 clunker deals. He has not been paid for a single one of them and is currently out about $160,000 with no idea of when he'll ever get paid. Nice.

God help us.

Chip

 

[BlackICE]

I wonder what loan rates, if any, would be available for covering the "rebate anticipation notes" from the Feds. If loans can be found I would est. payment within 6 months on 85% of the clunker submitted and plan my sales accordingly. Of course if loans are not available, one has to ask whether they want to take the hit to their cashflow and act accordingly. I have heard that some dealers are asking for full payment for the car and "promise" to return any clunker rebates from the Feds to the buyer when received. As a buyer I would have to ask what motivation would the dealer have to see the process through to the end.

 

[Nardo GT]

. I have heard that some dealers are asking for full payment for the car and "promise" to return any clunker rebates from the Feds to the buyer when received. As a buyer I would have to ask what motivation would the dealer have to see the process through to the end.

That would be the "fair' thing to do. Customer waits. But the problem is the customer wants it all...Zero percent, rebates, discount off sticker, clunker money etc. Smart shoppers = low or no profits. If you don't sell them a car and give the farm away they will go down the street to a competitor who will. It would be a pure can of worms in the finance dept too as most people borrow money. Texas requires you to transfer the title in 20 days and you have to transfer it to get outside funding on the deal. A cash deal wouldn't be so bad. Some dealers believe in "numbers" and the factories love them.:bs Just sell ,sell, sell and produce, produce, prduce.:ack You find yourself working for the factory and not yourself.:frown I disagree. Just an example....I would rather sell 20 cars at $1k profit ea than 200 cars at $100 profit ea.:wink Less liability, less work, less employees. less headache, less overhead no meds etc.:thumbsup Some dealers simply want to be the "largest volume" or the 'biggest".:bs...Not me. Never, ever, ever. But then on the other hand, I prolly won't get my atta boy with a gold pin from the factory either.:lol

 

[PILOTJPW1]

That would be the "fair' thing to do. Customer waits. But the problem is the customer wants it all...Zero percent, rebates, discount off sticker, clunker money etc. Smart shoppers = low or no profits. If you don't sell them a car and give the farm away they will go down the street to a competitor who will. It would be a pure can of worms in the finance dept too as most people borrow money. Texas requires you to transfer the title in 20 days and you have to transfer it to get outside funding on the deal. A cash deal wouldn't be so bad. Some dealers believe in "numbers" and the factories love them.:bs Just sell ,sell, sell and produce, produce, prduce.:ack You find yourself working for the factory and not yourself.:frown I disagree. Just an example....I would rather sell 20 cars at $1k profit ea than 200 cars at $100 profit ea.:wink Less liability, less work, less employees. less headache, less overhead no meds etc.:thumbsup Some dealers simply want to be the "largest volume" or the 'biggest".:bs...Not me. Never, ever, ever. But then on the other hand, I prolly won't get my atta boy with a gold pin from the factory either.:lol

Yea my "gold pin" went on hold for this year too with this BS program.

And the compications and rule changes have been crazy. We have told several customers sorry due to all kinds of little quirks, like one El caminio we inspected vin plate was damaged and it was not clear as a bell, that vehicle was a 84 or 85. another one could not produce a document, I would accept, showing proof of continuous registration poor guy made 4 trips to DMV. And I said no.

While I',m sure they will get some dealer to go for it.

A 4500 "maybe recievable" on a Focus with a 400 dollar gross profit is crazy and I'm not getting my ass crushed by accepting the risk.

And now word is out of FED's deducting tax liens from the 4500$

Now how and world are we suppose to know if the customer is a tax cheat!!

I will be dam glad when the deal is over!!!

 

[HHGT]

You can't fix cancer with a Bandaid. All these programs are flawed at the core. Wake me up in 2012.

 

[Nardo GT]

You can't fix cancer with a Bandaid. All these programs are flawed at the core. Wake me up in 2012.

Can I go to bed with you Sam? Wait a minute ...what am I saying?:ack:eek