Sep 21, 2009 5:52 pm US/Central
Dealers Finally Getting Cash From Clunkers Program
CHICAGO (CBS) ―
-
-
Car dealer Jason Roberts is glad to report the federal government has made good on the money it owes under the popular "Cash for Clunkers" program.
CBS
The government seems to be making big headway in its "Cash for Clunkers" payments.
As of Friday, Uncle Sam had paid dealers for more than 534,000 vouchers. About 77,000 more have been approved for payment, and, as CBS 2's Mai Martinez reports, that's music to the ears of area car dealers.
At Westfield Ford, General Sales Manager Carmelo Scarpace couldn't be happier when it comes to the government's payments on their Cash For Clunkers deals.
"We have 10 left to be paid on out of 102, which is about $40,000. We're feeling pretty good about it," said Scarpace.
He added the payments were slow at first, then started pouring in. "We came in one morning, and they were all paid, so it was big."
It was big news at Ettleson Hyundai, too. The dealership racked up almost $600,000 in government cash for its clunker deals. Three weeks ago, they had only been paid for seven. Monday, it was a much different story.
"Out of 142 vehicles we submitted, we're paid on 140," general sales manager Lou Tornabeni said. "I expect to get paid on the last two today."
At Advantage Chevrolet, it was the same story. Three weeks ago, Uncle Sam owed them more than half a million dollars in payments. Now the government only owes them for one voucher.
"I was a great surprise, great program, very successful for our organization," general sales manager Jason Roberts said.
Roberts says the program not only boosted sales for this quarter, it also allowed them to avoid layoffs. He added even though the program is over, it's still drumming up sales for his dealership.
"We've had one customer that purchased two cars during the Cash for Clunkers program that has actually referred three clients to us, so it has definitely stimulated our business in the long term as well," Roberts said.
Other dealers agree that the program has long-term benefits.
"I think it brought a lot of customers back into the domestic showroom, which is good, and they've seen the product that's available. I think we'll see a lot of future sales off of it," said Carmelo Scarpace of Westfield Ford.
And for that, they have two words for Uncle Sam: "Thank you." According to the most recent numbers released by the government, 81 percent of Cash for Clunker deals in Illinois have been paid, and 86 percent of the deals in Indiana have been paid.
The dealers say the government plans to wrap up payments by the end of this month.
(© MMX, CBS Broadcasting Inc. All Rights Reserved.)
The Tattooed Ladies of Hollywood
Click to enlarge
Stumble It!
Reporting
Comments