Wednesday, September 2, 2009

Obama Still a Very Slow Payer

And their are people that actually want the government to run healhtcare. Keoland Television reports:

During the month long program [Clunker for Cash program], Billion Automotive sold close to a thousand vehicles but has only been reimbursed for 272 of them. Vern Eide sold over 200 cars and has only been paid for 27 of them, and that's fueling lots of concerns in the auto industry.

Billion Automotive cashed in during Cash for Clunkers, but owner Dave Billion is still waiting for the rest of his money from the government run program, $3.2 million.

"I wonder how long they'd wait if I owed them $3.2 million. I think they'd be at my door or at least my banker's door," Billion said.

Even though Billion is beginning to get some of his reimbursement money, he's still concerned because he says there doesn't seem to be any rhyme or reason to the program.

When Cash for Clunkers was first announced, dealers were supposed to be reimbursed within 10 days of a sale. Billion says that hasn't happened.

"The program started in July and we haven't gotten paid for cars we sold back then, but then on the other hand we got paid for a car we sold last week. They don't have an accurate format. It's not like they're taking the first deals that were submitted and working those. I don't know how they're doing it, no idea. I know it's very random" Billion said.

Plus, he's had problems getting some vehicles qualified.

"We had a situation where we had a submission, they rejected it for multiple reasons. We didn't see anything wrong with it, so we resubmitted it. They rejected, we resubmitted it. They rejected it, seven times and finally they paid it, and we never changed a single thing on it," Billion said.

But Billion thinks he'll get his money eventually, it just may take longer than what the government first said.

1 comment:

  1. Wenzel,

    The random cancellations are a time-buying/work-flow management tool. According to their rules, everytime a claim is submitted, they have 10 days to make a decision. So everytime they cancel and dealer resubmits they buy themselves another 10 days to get to it. They can do this almost indefinitely if they'd like, if necessary to gain more time to process other claims.

    Meanwhile, dealers are majorly on the hook, are experiencing cash flow issues and are liable for any rejections the government makes.

    And now the major manufacturers are ramping up to flood the lots with new product (Toyota's LA region is facing the lowest ever current days supply of 9!) right as we head into the vaccuum-sucking noise-filled abyss of the soon to be crashing again economy.

    It's like the dealers had stalled on the train tracks, a government mechanic came by and got the engine to turn over with an injection of NO2 and they are now pushing both feet on the gas pedal as they head toward the oncoming freight train of another economic crash.