New Hampshire residents are flocking to local car dealerships to trade in their gas-guzzling vehicles for more energy-efficient ones, thanks to the federal government's Cash for Clunkers.
The program, which began a week and a half ago, was almost shut down over the weekend because of a rapidly diminishing money supply — but local car dealerships said that's not the only problem.
Emmett Horgan, owner of Rockingham Toyota Nissan in Salem, described the program as "nothing short of a horror show."
Although Horgan has sold more than 75 vehicles through the program, which offers buyers a $3,500 to $4,500 cash allowance for trade-ins, he said it's been poorly executed.
"There's a lot of unanswered questions," Horgan said.
One of those unanswered questions is how much of the program's $1 billion budget has been used up. Technical errors have prevented dealers from submitting required forms, so the government has been unable to track the number of cash allowances spent.
The National Automobile Dealers Association conducted a survey early last week that showed about 225,000 transactions involving clunkers nationwide, leading to a vote by the U.S. House of Representatives to add $2 billion to the program's budget.
Charles Cyrill, director of media relations for the organization, said the U.S. Senate is expected to vote on the legislation early this week, and dealers are strongly encouraged to contact their local senators and ask them to vote in favor of the additional spending — otherwise, dealerships might not be reimbursed for cash allowances.
Horgan said one of his main concerns with the program is not knowing if the federal government will be able to pay him back.
"How do you know when the money is going to run out?" Horgan said. "The frustration is high and, unfortunately, the consumer doesn't really have the full story right now."
If the Senate doesn't approve the additional spending, the U.S. Department of Transportation will postpone the program, Cyrill said.
Troy Allen, president of Allen Motors in Derry, said his biggest problem has been filling out the forms.
"We've got about two or three people here and we're all sitting with the form up on the computer screen in front of us trying to figure out how to do it," he said.
Allen said he called several government agencies but hasn't heard back from any because they are so overwhelmed with phone calls from other dealers.
Another concern for dealers is the fact that the cash allowances given to buyers are considered taxable income.
"They make it so complicated that you can't apply for the money and now they're going to tax it on the other end," Allen said.
But some used car dealerships are still optimistic about the program. Although the program only applies to new vehicles being sold, Paul Husson of Husson Motors in Salem said the program is a step in the right direction.
"I see that business is slowly improving, and anything that helps the new car business will trickle down and help us eventually," he said.
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