From the Milwaukee Journal-Sentinel:
A growing number of auto dealers say the process of getting paid under the government’s “cash for clunkers” plan increasingly resembles some of the wrecks accumulating on their lots as part of the program.
The slow payments coming from the federal government are reinforcing the paradoxical nature of the program for dealers: It has generated the most showroom traffic they have had in months while at the same time heaping unease, frustration and worry onto the industry’s worst-ever downturn.
As of the close of business Friday, there was talk in the industry that some dealers are considering pulling out of the clunkers program altogether.
“A number of dealers have floated $100,000 to upwards of $1 million or more” on the clunkers program, said Bill Sepic, president of the Wisconsin Automobile & Truck Dealers Association.
Dealers say they want to see at least some sign that they will be able to recoup that money. Still others need the money to pay bills and meet payroll.
“This is not a Wisconsin problem,” Sepic added. “This is going on across the country.
Let's review, shall we?
Obama (or his people, since I have no idea if he's ever had an independent idea) decides it will be a good idea to give people $3,500-$4,500 vouchers to buy a new car, if in return they trade in their old "gas-guzzling" models. Here is the deal in a nut shell:
1. Trade in your used clunker (an old car that gets poor gas mileage)
2. Buy a new car that gets better gas mileage
So far, so good. Except for a few little problems - probably not really worth mentioning...
Who are the ones who generally own old clunkers? Well, it doesn't take a genius to know that the majority of those who would be interested in a deal like this would be those in the bottom half of the financial pie.
Now, understanding that a new car is not inexpensive. Even the cheapest new car will run you at least $12,000. So what is happening is that many of these people, who had cars that were probably all paid for, are now taking on additional debt.
Anybody see a problem here?
And let's suppose these people are able to afford the additional debt. Chances are, these people would be in the market for a new car anyway. Therefore, all the government has done is given people the incentive to purchase these new cars sooner.
So what happens next year? While these auto dealers are making more sales today, they will see a sharp decline tomorrow. Is that worth the billions we, the taxpayers, are spending on this problem?
To top it off, one of the goals of Obama's plan was to infuse Chrysler and GM with much needed capital. Yet, over 70% of the new cars sold through this program is going to foreign car companies! And now, the dealerships are finding that the bureaucracy of the federal government is causing many of these dealers to either borrow money to meet payroll, or go bankrupt anyway.
Hey, here's an idea. Why don't we let these guys run our health care industry, too? After all, didn't Obama say that private insurance will still be available for those who want it? Don't you believe him?
After all, he seemed so honest when he compared this to the differences between Fed EX, UPS and the post office. Right? If we just ran government health care the way the post office is run (or the DMV, or Amtrack or even the "cash for Clunkers" program) we would all be happy and sing praises to the ONE.
It really pisses me off when it is so blatantly obvious this administration either doesn't have the country's best interests, or is so horribly incompetent to serve. Forget about the sheer hypocrisy of the left - with their sudden believe that dissent is now "racist."
Honestly, I could not care less whether Obama was black, white, purple or green. He is leading us down the wrong path at such a breakneck speed, we may never recover.
(thanks to Say Anything)