"If we don’t get paid that would be an absolute disaster."
Kevin Lambert, general manager of Ardmore Nissan
Published 20:50, August the 19th, 2009
Dealers not getting their clunker cash
PHILADELPHIA. Where's the cash, Mr. President?
That's what a lot of area dealers are asking these days as the federal government has refunded dealerships only about 4 percent of the money owed for the wildly popular "cash for clunkers" program.
"It's a growing concern for dealers," Kevin Mazzucola of the Automobile Dealers Association of Greater Philadelphia said yesterday. "No dealers are saying that they don't want this program. But when you have say 300 to 400 sales and you're owed $1.2 million, it's a lot of money."
About 200 dealers in New York City yesterday decided it was too much money, electing to stop offering the $3,000 to $4,500 rebates because they can no longer afford to wait for the feds' slow response. Only about 4 percent of all rebates have been repaid to dealerships since the program began, according to U.S. Rep. Joe Sestak in a letter last week to President Barack Obama.
Kevin Lambert, general manager of Ardmore Nissan, said the government owes his dealership $167,000 for 37 clunkers exchanged for new, more efficient Nissans.
"The fact that no one is getting paid, it's scary," Lambert said. "But its not going to derail us from doing deals. You just have to make sure everything is in line and be ready to wait."