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GM Provides Cash for Clunkers Bridge Loans
GM dealers got some relieve today as corporate headquarters posted a press release on their website that is welcome news for their network of dealers.
Hats off to GM for giving their dealer network some financial relief.
Many consumers and dealers have posted comments on this website that the manufacturers benefited the most from the Cash for Clunkers program and that local dealers had to bear the costs of operating the program.
This is a game changer and welcome news. Let’s see if other manufacturers follow their lead.
This decision is likely to be driven by an unspoken knowledge that the NHTSA will take weeks to get caught up with their backlog of reimbursements. We calculate that the NHTSA would need over 2,000 workers to get the job done in a timely fashion.
This week the NHTSA promised to ramp from 300 to 1,000 workers but that is too little too late and that’s why GM had to step up to the plate.
GM Cash for Clunkers Advance Payment
Here is the text of the official GM press release:
In order to meet high customer demand for new fuel-efficient GM cars, crossovers and trucks under the Federal CARS (Cash for Clunkers) Program, the company will today begin providing cash advances to dealers which are equivalent to the amount of federal rebates which are being processed for that dealership’s qualifying new vehicle sales. As a result, dealers will have the liquidity to run their businesses effectively in the midst of this extremely successful program, and to continue immediately delivering new vehicles to GM customers.
“Our sales performance in the past two months has exceeded our internal forecast by over 60,000 vehicles, largely driven by the CARS stimulus program,” said Mark LaNeve, VP of U.S. Sales. “We want to do all we can to provide customers with timely new vehicle deliveries and dealers the liquidity they need to run their businesses. This will continue the sales momentum of our new fuel-efficient vehicles such as the Chevrolet Cobalt, Equinox and Buick Enclave.”
GM intends to provide these advances for qualifying new vehicle sales already transacted under the CARS program, and will provide advances going forward as long as the CARS program is in effect.
Ohio Greg…Ann Clark’s daughter had a month long lapse in insurance last November.
Ann Clark,
Unfortunately, the govt is being pretty strict on the insurance requirement. Perhaps your daughter could see if her dealer is sympathetic to her disappointment and try to get him to give her a good trade-in price for her clunker, and tweak the selling price a bit?
Ann Clark: So you’re saying the government rejected her application because of the insurance lapse…correct?
Is her dealer willing to re-submit the application along WITH the letter from her insurance company? If the letter states that her insurance coverage has been in effect for at least the past full year, I would think that might satisfy the government folks.
Help. My daughter purchased a new car from a GMC dealership in KY. Her 1995 Astro van has been in her name and insured for over 2 and a half years. The problem is that during the time that my mother her grandmother was dying of cancer on in Nov 2008 she forgot to pay her insurance bill and her insurance for a month was not in effect. She has a letter from her insurance company that explains that she had coverage on the van ever since she owned it and it was a mistake. She had already taken posession of the new car and is hardbroken.
Any suggestions would be appreicated.
The manufacturers are fronting the money to the dealers??? WHY DIDN’T I THINK OF THAT??? …Oh,… wait. I DID!!!:
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Crazy Ivan says:
August 17, 2009 at 1:16 pm
We received a call from Chrysler this past Saturday. A person wanted to survey us to see how happy we were with our new car. LOL!!!! My wife answered the phone and, by the end of the call, the person taking the survey must have felt pretty uncomfortable with what they were hearing!!! If the manufacturer thinks we have the car in our possesion and we , in fact, do not, they should be looking into why. The manufacturer should be fronting the money for its dealerships while they sell the vehicles and then the manufacturer can wait for the rebate. Then, if any further action is necessary, it is between the government and the car manufacturer. The dealers should be selling cars, not baby-sitting the program. What a mess. BTW, we are still waiting… 20 days and counting!
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We received a call from our dealer tonight. We pick up our new car on Saturday!!! All’s well that ends well. We all learned a little lesson about our government, private business and human nature in the process thanks to this site! Thanks to all that have contributed and stuck it out!!!
Good luck to all of you still waiting for your car.
special thanks to Mr Pasch and contributors. Ready your curtains Sir, take a bow, take 10 more.
The revolution didn’t get televised, it was webevised!!!!
Hats off, bravo, excellent form!
I GOT MY CAR!!!!! THANK YOU GM!!!! My NEW cobalt SS has me smiling from ear to ear. THANK YOU OCONNOR CHEVY OF ROCHESTER!!!
That’s awesome Lesley. My Dealership also tried to submit the application on the 24th, but werent able to until the 28th due to dealer registration complications. It’s been over a month since I’ve tried to buy the car and when I called today to ensure that I would not have to make a car payment on a car that I did not have in my posession (only the clunker) they said that they received their first approval.
They released their first car yesterday (it was actually on the news) and got another approval in today, so depending on how they’re going through these application (lets hope it’s first come first serve) I might be getting a call within a couple days or a week. And I would also like to thank this website for keeping us mere mortals in the loop
Interesting, My wife got a call from dealer last night saying we could pick up today everything was approved. Called them this morning to arrange and they told me that they decided not to release cars because GM is only giving them 20 days to pay back money. Signed contract on 7/31 and still driving my clunker.
After submitting our deal on the first day and waiting and waiting and waiting… we finally received notice that our deal was approved today (24 days later). Here’s hoping others caught in the backlog follow suit. Thanks to everybody who contributes to this site. Truely the only place we have been able to find out what was going on with this C4C fiasco.
Thanks for that, Greg. Being one of many stuck in the middle of all this it’s nice to still get a chuckle every now and again.
Irony:
Government Motors…loaning money to their dealers…because the government is reimbursing them too slowly.
