Clunker conundrum continues

By Layron Livingston - bio | email
Posted by Ellen Krafve - email

TYLER, TX (KLTV) - The clunker conundrum continues. Nearly a month after the popular Cash-for-Clunkers program ended, clunker deals are being rejected by the government. It's putting some dealers, and potentially some customers in the middle of a paperwork war.

"It's been a very confusing, frustrating, stressful program that should have ended," said Brad Hall, the Hall GM Sales Manager.

Just when some thought they had said goodbye, clunker confusion, again, reared its clunking head. Hall says they've received payment on about half of their clunkers, but it hasn't come easy.

"You may send one packet in for payment, and they'll kick it out for whatever reason," said Hall.

Jack O' Diamonds Sales Manager Rodney Fields says the process is frustrating.

"All of them have been rejected at least once," said Fields.

He has about 20 deals sitting on the back lot, slowed up and tied up, in what some call, pages and pages of clunker rules and regulations.

"Some of them have been rejected two or three times, but it's for errors that do exist," said Fields.

"One of the reasons was they stated they couldn't read the driver's license," said Hall. "Well, we could read it fine so to ensure that they could, we just enlarged it, rescanned it and resent it to them."

"Once you get them corrected, and send them back in, you start receiving payments," said Fields.

If a clunker deal is rejected, dealers are not allowed to ask customers to pay the rebate, something dealers say was clear.

"If we chose to do the Cash for Clunkers, it was our responsibility to make sure that we had all of the paperwork in order to be reimbursed," said Hall.

Hall predicts he'll be done by the end of the month. In the meantime he and other dealers are staying organized.

"[Your are] making sure your 'I's are dotted and your 'T's are crossed," said Fields.

When the clunkers program ended, about $2.9 billion in deals had been submitted to the government. The Department of Transportation says it is bringing in more employees to handle all the extra paperwork.

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