Wednesday, 26 August 2009 11:34
Last night, at 8 p.m. EDT, the government's Cash for Clunkers program, or Car Allowance Rebate System (CARS), came to an official end. The original deadline for dealers to submit transactions, 24 hours earlier at 8 p.m. EDT on Monday, was extended after the CARS.gov website repeatedly crashed. AIADA and other dealer advocates asked for and were granted the extension to allow dealers additional time to input all their Clunkers transactions. The Monday deadline remained the last point at which a CARS transaction could be conducted.
And so, the Clunkers program ended just as it began, in a flurry of confusion, contradicting messages, and stressed dealers. None the less, I, and most dealers, will remember it as the greatest stimulus program in which we have ever taken part, and in some cases the program that rescued our businesses.
Cash for Clunkers wasn't perfect - far from it - but it did provide a much needed stimulus to our struggling industry. And more than that, its impact has been felt across the board in almost all sectors of the American economy. It increased local, state, and federal tax bases; it led to new jobs and staved off lay-offs; it gave manufacturers a reason to increase production and consumers a reason to take out loans; and maybe most importantly, it gave Americans some good news when they needed it most.
Consumer confidence is a tricky concept, and can be easily swayed. Just the fact that Cash for Clunkers provided the nightly news some good information to report - Sales up! Dealerships hiring! - might be enough to lift confidence and get our economy moving again. It will be a while until we can know the full impact of the CARS program, but from my perspective it accomplished exactly what a stimulus program is meant to do.
Of course, that doesn't mean that AIADA is done with Clunkers. Our focus now is on getting dealers paid. Like dealers everywhere, large and small, I am wondering how long I can keep going before the government pays me the money I am owed. My stores conducted a total of 698 Clunkers transactions. We have received payment on 21. It doesn't take an accountant to tell me I need to see that voucher money returned, and quickly.
The Department of Transportation and the National Highway Traffic Safety Administration have literally worked night and day to get CARS off the ground. Their efforts are commendable, and I am truly thankful for what they have managed to accomplish in such a short period of time.
Dealers, also, have gone above and beyond, bending over backward to meet every paperwork requirement. Many of us worked around the clock to input the information on the CARS.gov website. I hope that the government recognizes that dealers are small businessman, and that we live and die by cash flow. The sooner the Clunkers funds reach our accounts, the sooner the full effects of the program will be felt.
Until then, AIADA will keep our members updated on CARS through e-mail alerts and will continue to work with NHTSA until every dealers is paid the money they are owed. No dealer will be left out in the cold. We also recommend that dealers check the www.cars.gov/dealersupport site frequently for new information. In addition, we dealers, depending on our circumstances, might find it worthwhile to investigate if their OEMs are offering any kind of cash advances while they wait for their CARS reimbursements.
Russ Darrow
AIADA Chairman
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