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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?


To: atticus4paws who wrote (213593)7/31/2009 4:41:16 PM
From: Patricia TrincheroRead Replies (2) | Respond to of 306849
 
Dealers have been losing money for months.............some losses range in the millions............and you expect them to be honest?

So many people are hurting in the auto business right now that no one will need to be paid off or bribed..........just getting paid for work of anykind will be incentive enough.



To: atticus4paws who wrote (213593)7/31/2009 4:47:03 PM
From: patron_anejo_por_favorRespond to of 306849
 
The processors are getting the business, that's probably incentive enough. Look at what appraisers were doing during the housing bubble ("Well, if I didn't overappraise that POS shack, they said they'd just take the business down the street to someone who would").

I'm not disparaging anyone who legitimately used the clunker program. The law was passed, and that was what was intended. But on legislation rushed through like this, a lot of abuse will take place.



To: atticus4paws who wrote (213593)7/31/2009 4:51:29 PM
From: The ReaperRead Replies (2) | Respond to of 306849
 
<I really don't know what happens in the verification process. But since the dealer isn't doing the crushing, I assume the car needs to be driveable to get on a truck to get to the processor.>

My understanding is that the first thing that is done is to seize the engine with sodium silicate before taking it to the crusher. The car doesn't leave the lot with a functional motor.

The dealer is responsible for this and the transport to the crusher. I heard a woman on the radio that does the administration for one of the local dealers. They get $50 for the effort to complete this process. The dealer has to fork out the $4500 upfront and hope the paperwork and the cars they process are all correct. After submission to the govt. they wait to get paid if the transaction is approved. Some dealers locally are requiring customers to sign contracts that stipulate that if the dealer is not reimbursed, the customer has to come back and pay the $4500. This has the makings of a complete clusterf***. This I assumed would be a pretty easy program to administer from the govt. but it's looking like a little more complicated. There's a 136 page rulebook to follow for this program..... and they want to run our healthcare. That rulebook would be in the tens of thousands of pages.