Red tape slows clunkers program

CHEEKTOWAGA, N.Y. (WIVB) - Car dealers are the squeaky wheel on this one, complaining that impossible rules from Uncle Sam are throwing a monkey wrench into the "Cash for Clunkers" program.

Dean Jackson showed News 4 rows of new cars they have already sold at Keller Chevrolet through the "Cash for Clunkers" program since Monday, just sitting there.

And the angry buyers want their cars.

Dean Jackson of Keller Chevrolet said, "They want to pick up their new car. The government put this thing out July first, we are now pushing August first, and no one is driving."

That's because the government is backlogged approving the cars being traded in as "clunkers." Under the program, the clunkers have to be disabled, by destroying the engines, before the dealer can apply to the government for a rebate.

Niagara Frontier Auto Dealers Association President Paul Stasiak of the Auto Dealers Association said, "According to the letter of the law, the dealership has to disengage the engine. He has to put a liquid glass in the engine, before he is eligible to apply for the federal rebate."

Which means a buyer might have to go days waiting for a new car, while their trade-in has been destroyed.

And Stasiak told News 4 consumers are pushing back, and the dealers are bearing the brunt, "The dealer did everything he could. He took the car in, disengaged the car, applied for the rebate, and is waiting for the government. But as this delay occurs, the anxiety level is rising at a record rate."

Congress is also getting an earful, and New York's senior senator, one of the champions of Cash for Clunkers, says this clunker better get fixed.

Senator Charles Schumer said, "This was not in the legislation we passed, and some sort of bonehead decided to do this, and we have to undo it quickly."

If you went to the government's website, www.cars.gov, a week ago to check the value of your rebate, look again. Officials changed some of those figures at the last minute, and what you thought would be a $4500 dollar credit could turn out to be only $3500 dollars.