Statistics on payment to dealers for “Cash for Clunkers”

The following is a letter from Carl Woodward, a highly respected automotive CPA. He issues a warning to dealers based on the following payment statistics. How does your experience compare to what is noted below:

I asked three questions to be answered:

1. How many Cash for Clunkers deals have been submitted?

2. How many of the submitted deals have been approved by the government?

3. How many of the deals have been paid by the government?

I have had responses from 153 dealer / dealer groups, included over 15 states.

This group of dealers have 6,887 Cash for Clunker submitted deals.

This group of dealers have 838 approved deals, 12 % of submitted deals.

This group of dealers have 330 paid deals, which is only 5 % of submitted deals.

Over 2/3 of the dealers have NOT been paid for any deals.

BE CAREFUL ABOUT ACCEPTING ANY MORE DEALS.

The government has likely run out of money and they do not know it because they are so far behind in processing the deals.