The new Cash for Clunkers program is the government’s way of rewarding Americans who want to trade in their current vehicle for more a fuel efficient option. Dealerships across the country have been in a financial squeeze for months, so far this program isn’t much of a reward for new car dealers.
Better Business Bureau has been receiving complaints from its Accredited auto dealerships participating in the Cash for Clunkers program. Most of these complaints surround the claim submission process and the length of time that it is taking the government to send out rebate checks to the new car dealers. Dealerships are also reporting that many applications are being rejected due to technicalities.
“Automobile dealers have been financially stressed from months due to slow vehicle sales,” says Paula Fleming, spokesperson for BBB. “For smaller dealerships, the cash-flow squeeze of delivering vehicles and then waiting for the payment of these rebates can be a huge hardship.”
Since the Cash for Clunkers program has been put into effect, dealerships have been inundated with consumers coming in and wanting to trade their vehicles. While this has been good for business, the dealerships have to go through a significant claim process to actually get paid by the government. After submitting each individual rebate that they receive, the dealerships must wait for each one to be approved by the government before they receive payment for the vehicle.
BBB is encouraging the US Department of Transportation and NHTSA to streamline the paperwork for the Cash for Clunkers program. Dealers need payment now! This would help to make the program more operational for the auto dealerships, while expediting the rebate process. BBB is also assisting its Accredited dealerships to preserve their client relationships, by offering neutral dispute resolution outreach programs.
For consumers that are interested in the Cash for Clunkers program, BBB recommends consulting the official Web site at www.cars.gov for more information. Consumers can also call the CARS Hotline at (866)-CAR-7891 or TTY at (800)-424-9153. For more BBB advice on auto dealerships you can trust, visit bbb.org.
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