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Car Dealers Getting Stiffed On “Cash For Clunkers”

by @ 8:17 am on August 18, 2009. Filed under Economics, Politics

So says Pennsylvania Congressman Joe Sestak:

The federal government has only reimbursed auto dealers for 2 percent of the claims they’ve submitted through the popular “cash for clunkers” program, a Pennsylvania congressman said, calling on the Obama administration to help speed up the process.

Rep. Joe Sestak, D-Pa., called for “immediate action” to address the problem in a statement Sunday, after writing a letter to President Obama Saturday expressing his concerns.

In the letter, Sestak said only 2 percent of claims have been paid and that four of every five applications have been “rejected for minor oversight.”

In recent days, auto dealers across the country have been complaining that the reimbursement payments are slow to process. And they said some of their applications were being rejected because of apparent procedural issues. The statistics Sestak cited suggest those complaints are not based on isolated incidents.

Staffing could be one problem. According to sales data summarized by Transportation Department officials, dealers have submitted requests for rebates on 338,659 vehicles sold.

But while Congress just expanded the $1 billion program by $2 billion, the Department of Transportation says a staff of just 225 people is reviewing those claims.

Once again, the government screws up. What a shock.

2 Responses to “Car Dealers Getting Stiffed On “Cash For Clunkers””

  1. [...] leave a comment » The federal government has only reimbursed auto dealers for 2 percent of the claims they’ve submitted through the popular “cash for clunkers” program, a Pennsylvania congressman said, calling on the Obama administration to help speed up the process. via belowthebeltway.com [...]

  2. [...] i.e., the Department of Transportation – has really messed up the administration of the program. Last week it was reported that only two percent of the claims submitted to the department had been paid and [...]

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