Newest Fiasco In The "Cash For Clunkers" Program
Dealer friend | MB26
The $4500 rebate program is a worse fiasco than anyone thought.
It was supposed to work like this:
The dealer and new car buyer would negotiate a deal, taking into account the $4500 the dealer was promised by the government. The rebate paperwork would then be submitted online, and as soon as it came back, via the web, as APPROVED, the buyer could then drive away in their new car, title and all.
In a few days, the government would send the dealer a check for $4500 and everything would be square.
The problem started when the government website began to acknowledge receipt of the rebate paperwork, sending the dealer an email that the rebate application was “ACCEPTED.”
All “ACCEPTED” meant was that the rebate application was logged into the national system, there was no information missing, etc, and that it would then be reviewed by the government for final approval.
The problem is, some dealers confused “ACCEPTED” with “APPROVED.” The dealers then released the new car, titled in the purchaser’s name, and off the happy new car buyer went, in some cases, nobody knowing where they were going.
But that’s Ok. You already know where this story is going.
Sometime after the buyer had driven off, a second email frequently arrived from the government, telling dealers that although the application paperwork had been ACCEPTED, the rebate was NOT APPROVED for some reason!
There is panic in the showrooms. Even if the dealers can get the cars back, some have already been titled, so the dealer now has to sell the unit as a used car!
There is much much more to come on this.
Your government at work…. and they want to manage your healthcare program!