Dealer stalled in clunker program

Dozens of cars sold, but no federal payback Milford — It’s great to be selling the cars, but Bill Rosado says the fed’s Cash for Clunkers program associated with many new sales has so far been a big money drain. Rosado resided in Milford for 32 years and still owns a home here. “I’m a local kid. Everybody knows me.” he said. He is also in a position to know about the Clunker program. His Rosado Group includes six dealerships: Broadheadsville Chevrolet, Scranton Ford, Lehighton Kia, Harrisburg Hyundai, Dickson City Hyundai, as well as Milford Chrysler Jeep Dodge Suzuki in Pike County. Rosado said his dealerships have sold and delivered 57 vehicles under the program — but have yet to receive any payment from the federal government for the clunkers he’s collected. At the average $4,000 credit the feds offer, that means he’s in the hole for some $225,000. “This was supposed to help strengthen the economy, and help out the industry in a tough economy, but it’s only added an additional burden,” he said. He says the program, administered by the Department of Transportation, was understaffed and overwhelmed as it attempted to handle the interest in $3,500 to $4,500 credit program. The feds were supposed to turn around dealer applications in 10 days, “but they’ve violated that by weeks,” according to Rosado. He’s concerned about being reimbursed, if dealers are forced to prove federal errors. “They should stop it, and get the problems fixed, before it continues,” he said. The Associated Press reports that interest in Cash for Clunkers may be waning. According to the Edmunds.com automotive Web site, many customers waiting to buy have made their moves and inventories have dropped and prices have risen. Inquiries on the Web site were down 15 percent last week from this year’s peak in late July. While Rosado and others await payment, the image is one of success. “Now that there is plenty of money in the program and the most eager shoppers have already participated, the sense of urgency is gone,” Edmunds CEO Jeremy Anwyl said in a statement. “Inventories are getting lean and prices are climbing, giving consumers reasons to sit back.” Because of reduced inventory and repayment issues, Rosado is taking deposits from customers who want to reserve vehicles under the program. They won’t be delivered until the feds ante up. Rosado said his dealerships have also stopped terminating the engines of the trade-in clunkers, which was a requirement early on. “They’re not worth the money I have invested, but we’ll wait on the euthanasia for a while.” On Tuesday, according to a statement from Philadelphia area Congressman Joe Sestak, the National Highway Traffic Safety Administration (NHTSA) confirmed that they are instituting a fast track approval process to reduce the average processing time of cash for clunker reimbursements to dealers. Clunker numbers As of Tuesday morning, Aug. 18, car buyers in the U.S. had signed deals to trade in 411,624 clunkers for new vehicles, getting rebates of up to $4,500 from the federal government. Ford Motor Co., Honda Motor Co., Toyota Motor Corp., Hyundai Motor Co. and Chrysler Group LLC all have announced production increases due to the clunkers program. Most of the trades have been pickup trucks and sport utility vehicles. The top 10 vehicles purchased by those making clunker trades: 1. Toyota Corolla 2. Honda Civic 3. Ford Focus 4. Toyota Camry 5. Toyota Prius 6. Hyundai Elantra 7. Ford Escape (front-wheel-drive) 8. Honda Fit 9. Nissan Versa 10. Honda CR-V (four-wheel-drive)