Local Auto Dealerships Waiting On Cash For Clunkers Money

PALM DESERT- It’s moving cars and trucks off of car dealership lots all across the Coachella Valley.It has generated $1.8 billionworth of sales across the country.But many local dealers say they are scared because they still have not been reimbursed by the government for the Cash for Clunkers rebates.

The response from consumers to the Cash for Clunkers program was so fast and furious it’s leaving some dealerships asking where’s our money.The dealership pays the $4,500rebate out of their own pocket.Then, they submit a request to the government for reimbursment.The red tape-filled buracracy is leaving many car dealerships wondering when they’re going to get their money back.

I-10 Toyota and many others say they are concerned because they haven’t gotten any of their money back.It has been weeks since some of the requests were sent in.The program is administered by the Department of Transportation.General manager of Torre Nissan in La Quinta, Chuck Stanley says, even though they haven’t been reimbursed for the over $100,000 worth of rebates,they are going to continue to take in clunkers for cash.

Originally the Department of Transportation was supposed to reimburse the dealerships within 10 days of receiving their request.What it comes down to iscashflow.The dealerships don’t have as much money because they are fronting the cash for clunker rebates.So in turn, their cashflow is limited when it comes to paying their own bills.