Cash for clunker recall

Posted at 1:09 PM, 7/8/2009

The first sentence of my last post about “cash for clunker” is “The long-expected “cash for clunker” project finally came into effect on July 24^th”, while now I have to tell you, expect longer folks, it seems that the implement of the project is marking time now. Lots of people worry about the affordability of the Gov in this project before and the Heritage Foundation showed the same anxiety about it, which, seem to be reality now. Only $1billon out of $4billon is set aside for the project and now the program, along with car dealers, suffer a lot.

For dealers, they continue to receive clunkers while they have to wait for all information completed and get the refund. First, they have to prepare a 20-page application, which requires data from more than one source. The website crashes of is also the barrier of application submition, time is wasted in waiting. When days are paid and the application successfully submitted, it doesn’t mean that you can finally get the refund. Applications keep being refused because of several detail problems. So it normally takes weeks for dealers to get a refund and when the amount is large, their cash flow will soon be depleted. The dealers have not other choice but to hold up the program and keep their cash flow in control.

We can see that although the government decide and promise to put the program into effect, the implement is somehow out of control.