Where's the dough? Dealers have received only 2% of the"Cash for Clunkers" money.

I hate to say it, but I predicted this. I wonder how many dealers were wise enough to question the program?

Dealers could; reduce prices on new cars by as much as $4,500, then not enroll the used cars in the program, thus avoid having to junk them.

http://winduprubberfinger.com/blog1.php/2009/08/02/cash-for-clunkers-another-example-of-the

With the government making the down payment, new vehicle prices will remain artificially high. This current increase in auto sales does not reflect actual market forces.

Banks will have a much harder time selling repossessed cars. The CARS benefit DOES NOT apply to used cars.

There will be huge vacuum when the program expires. New car sales will drop.

Dealers are now on the hook for more than 1 billion dollars, and there is literally no clear plan to reimburse them. It's not sure when and if the government will make good on the reimbursements; how long can the dealers hold out?

http://www.foxnews.com/politics/2009/08/16/auto-dealers-paid-just-percent-clunkers-claims-congressman-says/

The federal government has only reimbursed auto dealers for 2 percent of the claims they've submitted through the popular "cash for clunkers" program, a Pennsylvania congressman said, calling on the Obama administration to help speed up the process.

Rep. Joe Sestak, D-Pa., called for "immediate action" to address the problem in a statement Sunday, after writing a letter to President Obama Saturday expressing his concerns.

In the letter, Sestak said only 2 percent of claims have been paid and that four of every five applications have been "rejected for minor oversight."

To understand this dilemma; one has to understand the Obama administration. The cars program started just over one month ago. Since that time the administration has moved on. Now it's health care... Never mind all of the unfinished business. The CARS program was an attempt to create "stimulus that can be seen", because most Americans are showing disgust with the 700 billion dollar stimulus bill. There was obviously not much thought behind the implementation of the CARS program.

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