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I don't want to say I told you so - but, I TOLD YOU SO!

Automotive News
July 30, 2009 - 8:52 pm ET

WASHINGTON (Reuters) --The Obama administration will suspend a $1 billion program intended to spur U.S. auto sales after it surprisingly approached its funding limit after only a few days, government and industry sources said.

The so-called "cash for guzzlers" program authorized up to $4,500 to car buyers who traded in their gas guzzlers for more fuel efficient vehicles.

The program was expected to run through October, but the sources said the administration would suspend it within the next day.

Transportation Department officials had no immediate comment on the program that the agency administers.

The first government program fiasco is only the beginning! Remeber this wisdom - "Fool me once - shame on you. Fool me twice shame on me! Fool me three times - and can you say OBAMA!

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Oh yeah, I forgot to add that ovr 10% of the vehicels already submitted have been REJECTED for "technical errors" and changes in th EPA standards RETROACTIVELY so some cars previously posted as in the program have been dropped. If you want to write a complaint I suggest that you write a letter to Obama - you know the address - but unless you are a dues paying member of SEIU don't hold your breath!

I knew about this yesterday, which is why my late night post criticized dealers who waited until after July 27th to get started! I knew that enough cars had been sold and were waiting get punched in that as soon as the system was able to take the deals, the money would be gone in hours.

The smart dealers will be the ones that figure out how to promote "Cash For Clunkers is available at ABC Motors!". With all the screwing that dealers have gotten from GM and Chrysler this year, congress will be forced to put back the $3.5B they took out of the original CARS bill... Again, the smartest dealers will have their deals ready to be punched in the first day the money gets turned on again.

I feel sorry for the pathetic saps that said they wanted to wait to promote the program until after the NHTSA posted the official rules... Once again, Congress makes the rules, the bureaucrats at NHTSA only administer them!
Go ahead Phil, you can say "told you so"! Hell, 53% of the population should be hearing that on a daily basis but then again it doesn't do any good.

Let's hope they don't decide to throw more money at it.
This is crazy. What I don't understand is how any dealers got the deal submitted at all. Everytime we have tried I get stalled and booted out of the system. I got a few through but it took forever. The system does not work correctly. We advertised well before the 24th and had deals ready to punch once we got the information on the 24th. But, although I knew the mony would go fast. I did not except such techinical problems. Guess, I should have stayed at work all night last night!
Phillip, what no conspiracy theory of how this is another attempt by the government to close down even more dealers after the GM and Chrysler cuts? With the years of auto industry experience between congress and the car czar, I just can't believe this whole think didn't go off smoothly. Well at least if some dealers don't get funding they can always retail out of the trade in. Oh that's right, they already blew the motor up and gave the customer the money they got from the salvage yard minus the $50.

Let's cut to the chase here Phillip, I really think some dealers are going to end up losing a lot of money before this is all over. Someone on another site likened it to a game musical chairs, you better hope you have a chair when the money runs out. How do you think this is going to play out, don't hold back give the the full blown conspiracy theory here.
Well, a theory is usually an attempt to explain "what was" and/or to project what "will be" but since we have enough of "what is" to talk about why talk about conspiracy theories when the word "INCOMPETENCE" is more applicable!

The premature disclosure of the program to the general market stalled sales for many who were waiting for the "rules" - which changed several times since the July 1st announcement and the July 24th turned July 27th promised dates. Many dealers applied their competitive nature to the situation - forgetting the fact that they were not in charge but that the GOVERNMENT WAS - and they either held inventory pending the rules coming out - while the floor plan clock was ticking I might add - or even worse, they rolled the dice and delivered the vehicle in anticipation of their seemlessly submitting the deal for reimbursement online as promised - NOT!

Add to that the frustrated customers and lost relationships when dealers tried to explain the delay, the frustrated sales people who looked foolish when they couldn't honestly answer obvious and legitimate questions and of course the current concerns to put on the brakes for scheduled deliveries after last nights termination notice - which the administration now THINKS will continue after all - and my answer is - I TOLD YOU SO - and their aint no theory about it!!!

PS: The government just anounced that they will continue the program and that they - meaning WE - just added another two billion dollars to fund the program. I trust them - don't you????
Hey Phil,
Having trust in this administration is like taking 100 valium, a full bottle of Remy Martin and expecting you'll survive. The public is beginning to see what this "blow-hard" is all about. It's all about the agenda and not what "the people" want. Vote em all out!
Hey All, I'm wondering what happens after the program money runs out? What plans do you have after the government vouchers run out?
Maybe they will do the payout in government cheese after the money is gone:) I can see it now, come in Saturday for our big cheese sandwich sale
OK, this time they mean it - I HOPE! It is now officially over at 8 PM on Monday August 23rd but are you really foolish enough to continue delivering cars up until their deadline? Also, how many of you have ad campaigns planned through to the end of the program as it was originally promised and now you have to produce new creative - OUCH!

One question, how come no mention has been made that the government - once again - couldn't keep track of the true costs of the program and they ran out of money before the planned program end date? The NADA suggested that the program has already run out of money, but of course they haven't considered the government's ability to refuse applications on their whim - wait for it!

Fortunately, some news stations explained that so far the auto dealers have been self funding the program since most of them have not been paid yet - if ever - so I want to close this post with the most obvious conclusion from this fiasco.

CAN YOU SAY "HEALTH CARE!" Or if that is too obvious - cay you say "CAP AND TRADE! - LOOK FOR IT!
Phil, I am sure you heard the administration on television saying that the program was a success! They said that GM has boosted production, and even get in some overtime. What they failed to mention was that this was all great for GM, but all this production and overtime was in CANADA!

Cash for Clunkers was not thought out well. It's good that they wanted to do something, but there had to be a balance. You can't just give tax payer dollars without a return. I had suggested when they were asking for opinions that they have the metal companies, and recycling companies buy these vehicles as to lessen the exposure to tax payers.

Also with the amazing amount of applications being rejected after the fact, dealers have found themselves taking vehicles back, and or recouping their losses.


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