Cash-for-Clunkers Payments Are Slow

Let’s face it nobody wants to see any more financial harm come to the automotive industry or the automotive dealers, as they have suffered enough through this financial crisis. Nearly a third of all the car dealerships from American manufacturers have already been cut from their rosters. The Cash-for-Clunkers program seemed to be one way to help spur on the economy through economic stimulus, and also help out the devastated car industry. Cash For Cars Sydney

Having been in the automotive industry for nearly 27 years before retirement and having done services for automobile dealerships, I can recall that in the 23 states that we had done business, the car dealerships were among our slowest paying customers. Now then, the car dealerships are complaining that the Cash for Clunkers Payments are very slow in coming, and that the government is slow in reimbursing them. To me this almost sounds laughable. Of course, the government is slow paying their bills too, they always have been.

In all my years of business the only customers that were slower than the car dealerships were our government contracts, and sometimes we would be paid is late as 120-days and we still wouldn’t get paid 1% per month penalty as per our contracts. So, now we have the auto dealerships, which had never pay their bills on time, and as I recall, we always had to go in and demand payment, (otherwise threaten to cancel service) complaining about the government paying to slow.