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08-19-2009, 04:14 PM #1
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Angry N.Y. Dealers Pull Out of 'Clunkers' Program
Angry N.Y. Dealers Pull Out of 'Clunkers' Program
Wednesday, August 19, 2009 1:55 PM
NEW YORK -- A New York dealership group says hundreds of its members have left the Cash for Clunkers program, citing delays in government reimbursement.
The president of the Greater New York Automobile Dealers Association says about half its 425 members have stopped offering rebates from the program because they can no longer afford them.
The group's dealers have been repaid for only about 2 percent of the clunkers deals they've made, leaving many short on cash, Mark Schienberg says.
The program offers up to $4,500 to shoppers who trade in gas guzzlers for a more fuel-efficient vehicle. Dealers pay the rebates out of pocket then must wait for the government to reimburse them, but administrative snags have created a bottleneck in unpaid claims.
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