Slow government reimbursements for “Clunkers”; car dealers perturbed
Cash for Clunkers

While the federal government's $3 billion "Cash for Clunkers" program has been outrageously popular with the consumers, the US car dealers are apparently perturbed by the government's excruciatingly slow pace in providing rebate payments.

With reports saying that paperwork and payment backlogs might prompt a number of wary dealers to opt out of the program, Transportation Secretary Ray LaHood Wednesday reassured car dealers that they will be refunded the money they have fronted to the customers who have availed the "Clunkers" program.

LaHood told reporters: "I know dealers are frustrated. They're going to get their money"

However, noting that the program is essentially "cash dependent," Mark Schienberg - President of the Greater New York Automobile Dealers Association said: "The government needs to move the system forward and they need to start paying these dealers."

Meanwhile, some of the dealers, including a few in Kansas City, have already backed out of the "Clunkers" program. In addition, Ted Smith, the president of the Florida Automobile Association, also remarked his nearly 800 members have also been complaining about the rather slow reimbursement procedure.

As per the program, the dealers give up to $4,500 credit to customers - who trade in their old, gas-guzzling vehicles for the more fuel-efficient cars or trucks - out of their own pocket and have to wait for the reimbursement of the amount by the government!

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