Thursday, July 30, 2009

US Government Plunders Small Business thru Cash for Clunkers

As many of you may know, I work for a New Car dealership. Just as suddenly as the complex bulky Cash for Clunkers program started, it's apparently over.
The Associated Press - "The Transportation Department called congressional offices late Thursday to alert them to the decision to halt the program, which offered owners of old cars and trucks $3,500 or $4,500 toward a new, more fuel-efficient vehicle.

The congressional officials spoke on condition of anonymity because they were not authorized to speak publicly.

Through late Wednesday, 22,782 vehicles had been purchased through the program and nearly $96 million had been spent. But dealers raised concerns of large backlogs in the system, prompting the suspension."
Most people think that Fat Cat Car Dealers are awash with infinite reserves of money. Or maybe they thought that until 2 out of the "Big Three" went Bankrupt over the summer. On the one hand my dealer is pressured even today by the factory to build a new multi million dolloar showroom, on the other, we participated in a government program where we dispense the money in $3500.00 to $4500.00 increments that if we don't file the paperwork exactly right (and there are mountains of documents), you are bumped to the bottom of the line.

In effect, the government seems to be banking on us giving out the "assistance" and then they're going to stick us with the bill, plundering American small business through complex regulations, filing procedures and a suddenly empty till. You get your cash for your clunker, Joe Dealer could have all his profit in the program eaten up by denied claims, and then some. It's another form of wealth redistribution and taxation.

Another observation from first hand experience. The vast majority of the "Cash for Clunkers" claims have been for foreign cars. Not only are the dealers having some of their wealth redistributed, we are all, through the spending of Tax Dollars having our wealth go to pay Koreans for what they build, or Japanese for what they build. I mean not just foreign car companies, cars actually built overseas. The entire labor costs of some models are being subsidized by you through this program.

On top of that, we are destroying perfectly good cars. I emphasize that is a literal remark. We are required to destroy the engines of the "clunkers" prior to them leaving the lot. If a claim is denied on the 1998 Dodge Dakota V8 Club Cab pickup with 88,000 miles in pristine condition, it's already gone. 5spd, 4wd, 318 V8. A perfect work vehicle for a contractor on a budget. If we are unable to complete the claim, we've lost a vehicle we might have been able to retail out of and we don't get the money. Classic.

With Obama giving away portions of Chrysler to Fiat and paying foreign car companies while destroy our already accumulated wealth in the form of perfectly good cars and trucks, it almost looks as if he is intentionally taking down the US Economy to pay back foreign donors. Remember all those untraceable $200.00 donations he received?

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Anonymous said...

If I were a dealership, I would have been more cautious getting into the program. Certainly not participating fully until a few test transactions proved the model. You trusted the government. Remember that for next time.

The Pharisee said...

It's Skylla or Kharybdis. If you don't participate, business dries up. If you do, you may be robbed by the caprice and vagaries of Government.

Hemlock or Cyanide?

Would you prefer the sword or hanging?

Anonymous said...

Read this article: The Real Reason for the "Cash for Clunkers" Suspension. The ex car salesman blog shares exactly why they stopped the program. Even reports that some sales managers are calling asking for the money back because they were denied the rebate when the final paperwork was submitted but their car was already ruined by dumping a solution in the engine. They now have no car. Scary. See:

Anonymous said...

I was unaware of the engine destruction provision. So much for recycling and reusing. Millions $ of used car parts wasted. Just stupid.