Saturday, August 22, 2009

Will cash for clunkers clunk?

In reading that some of the dealerships were having problems being paid for cars that they felt met the cash for clunkers criteria it made me wonder what would happen. It seems as if the people who got the new cars will still end up profiting from the credit since that's not going to be taken back, but how many car salesman can end up taking that large of a loss as well as how many dealerships could either?

One of the biggest complaints is not the actual program but how the Department of Transportation is running the program and the paperwork is said to be a real pain. A friend of mine who took advantage of it was surprised to learn one of the requirements is you have to provide proof that you've had car insurance for a year. Not just at the time of the purchase but for the entire year, and if you didn't bring that kind of paperwork with you? Delays happen...

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