GM Advances Cash to Cover Clunkers Payments

Gm-dealership While the federal government hustles to keep those $3,500 and $4,500 vouchers coming to car dealers participating in the Cash for Clunkers program, GM has announced that it will advance cash to its dealers to cover their sales for the time being.

The automaker will cover the shortfalls with advances of up to 30 days for dealers who’ve already sold a car. Basically, because government money is slow to come in, dealers are finding themselves short on cash, which they’ve borrowed to get new cars on their lots in the first place.

This program will be available to GM dealers as long as Clunkers continues, although that might not be for long.

The Obama administration will announce by Friday how it plans to wind down the program. Transportation Secretary Ray LaHood will likely explain when the government incentives will no longer be available. We’ll be watching to see if the announcement creates a new rush to dealerships.

GM to Advance Cash to Dealers Under Clunkers Program (Detroit Free Press)

Comments 

Ziggy

Does it really matter if the money comes from GM or from the Fed? They're both tax payer dollars anyway.

J

Of course they can advance the money. It is still government money anyway!
Full of crap!

Good…, as they say, all good things come to an end. Actually, this could be considered a BAD thing b/c it’s CRAZY, we are giving people money to live more vicariously and lavishly than before all this economical bust took place? What are we doing? Spoiling every single last American? Let’s learn to live in moderation, then we wouldn’t have so much debt…Well, the fish sticks from the head..so the head is the While House…right?

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