60000 Clunkers Rejected For Payout According To Cnn Report
The news that 60,000 clunkers have been rejected for payout is not sitting well with everyone. That more than 60,000 clunkers were rejected comes as no surprise for detractors of the thought, but it also comes with an asterisk when it comes to representing this as fact. The first fact to latch on to, is that indeed about 60,000 cash for clunkers applications have been rejected so far, but an additional fact must be added to the equation, in that NHTSA officials are working with the dealers to still accumulate them approved. I think that it’s time to steal a step help from the sensationalism that is being given to this news, and actually look at why those applications are being rejected in the first status.
The plan that the cash for clunkers program worked was that people could get as much as $4,500 in exchange for their trade-in, and that cash was given to consumers as soon as the process was complete. That cash went towards the purchase of a new car, and all of the consumers that qualified for the program were already paid out. The first step though, was that the dealers were paying that lump sum to the consumers, and then turning around to get that money assist from the Government in accordance with the program. This is where many delays and colossal amounts of paperwork have slowed down the process where the dealers were actually getting their money benefit. It has left a number of dealerships quite frustrated with the program, and the wearisome process of reviewing the applications is unprejudiced adding to the frustrations.
Now the news has come out that in the process of reviewing all of these applications (so far) around 60,000 cash for clunkers applications have been rejected. Now the reason for rejection doesn’t have to be something large, but can be that there was an error on the form, that the consumer filled out something wrong, or even some small technicality. It’s a lot of red tape that is keeping the dealerships from getting their funds, and it is not a ecstatic experience to be “out” this money for such an extended period of time. The silver lining is that at least the NHTSA is working with the dealerships to get as many of these rejected applications approved as possible. It tranquil may be too little, too slow in order to keep the public opinion of the program in the positive.
It seems that many people have already benefited from the cash for clunkers program, and that the 60,000 is really a small number when compared to the 611,373 applications that have reportedly already been approved. That’s not the greatest news for dealers that are out funds aloof, and all they want is for the Government to honor their promises that the money would be there if the consumers were given these astronomical deals on cars. It seems that the program has still worked like it was supposed to, and that the Government really just needs to act quicker in getting the money back to dealerships that are already struggling in this economy. It does sound like they are on the upright track, but that they unbiased need to move faster.
Source: CNN Video
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Filed under Small Business IP PBX by on Jan 31st, 2012. 