Good for Kerry. He is on top of some of the problems w/ Cash for Clunkers

August 21, 2009

KERRY CALLS ON D.O.T. TO EXPEDITE ‘CASH FOR CLUNKERS’ REIMBURSEMENTS



BOSTON – Senator John Kerry today sent a letter to Secretary of Transportation Ray LaHood urging him to expedite reimbursements to car dealerships in Massachusetts and across the country who’ve been participating in the Cash for Clunkers program. Because of the current backlog in the approval process many dealerships have expressed concerns about having to finance vouchers in advance of receiving the federal funding.



“The last thing we want to do is put a financial strain on dealers that could potentially offset the benefits of the program. The benefits of this program are too great to jeopardize because of something as simple as a bureaucratic backlog. I strongly urge Secretary LaHood to put measures in place to expedite the reimbursements to our dealers,” said Senator Kerry.





The text of the letter is as follows:



The Honorable Ray LaHood

Secretary, U.S. Department of Transportation
1200 New Jersey Ave, SE
Washington, DC 20590



Dear Secretary LaHood:

I am writing to request that the Department of Transportation take additional steps to expedite reimbursements to U.S. automobile dealers for vouchers issued to consumers under the Car Allowance Rebate System (the “CARS” or “cash for clunkers” program).

Despite the clear stimulative impact that the CARS program has had for consumers and dealers alike, dealers in Massachusetts and around the country are being forced to effectively finance vouchers in advance of being reimbursed by the federal government. This financial strain on dealers could potentially offset the benefits of the program. Reports indicate many dealers are choosing not to participate in the program due to these concerns.

I recognize the CARS program’s success perhaps has placed unexpected burdens on the Department of Transportation. Your comments this week assuring dealers that properly submitted vouchers will be honored are appreciated. However, I believe additional actions are necessary to ensure the CARS program’s continued success. I urge you to put in place a policy that guarantees prompt reimbursement for all properly submitted vouchers, and to allocate sufficient staff and resources in order to meet this commitment. Such a policy would further reassure participating dealers that they can continue to issue vouchers with the expectation that the current back log in the approval process will not cause a lapse in repayment.

I appreciate your consideration of this matter and look forward to your response.



Sincerely,



John F. Kerry