MS Auto Dealers Frustrated by Clunker Program Red Tape

The federal governments cash for clunkers honeymoon seems to be over for some Mississippi automobile dealers. MPB's Lawayne Childrey reports.

“Good afternoon Paul Moak”

At the Paul Moak auto dealership in Jackson, Manager John Scarbrough says the cash for clunkers rebate program has had the impact of a title wave.

“There’s been a lot of consumers that have, ah, I think gotten into some very good vehicles. And have gotten out of some vehicles that weren’t so hot. And so there’s just been a ton of consumer interest in the program which is good. But what that’s caused is a negative title wave from a dealership standpoint.”

Moak, like many dealerships across the state has been hit with hundreds of request for the program which gives consumers thousands of dollars towards the trade in of their old gas guzzler. Scarbrough says more than 30 have been traded at his lot. But he says the federal governments slow review process is holding up critical dealership reimbursements.

“We are used to dealing with incentives and manufactures like Honda. They turn around and pay us very very quickly, a few days at the most. And so to go a week, two weeks, three weeks without that payout is something we’re not use to. And so it’s caused some frustration on our end.”

Right now dealers are footing the bill with their own cash. But according to Bill Lehman, President of the Mississippi Automobile Dealers Association, what seems to frustrate dealers the most is the high rate of rejection and governmental red tape. That's why his office has been sending out regular email updates.

“ I wanted to make sure that our members knew what they should be looking at that were the most prevalent problems. It’s just an overwhelming situation the demand has built for a good 18 months for automobiles.”

While the federal government continues to iron out the kinks many dealerships have simply stopped accepting clunkers until some reimbursements arrive. For MPB News, I'm Lawayne Childrey.