Well, the much anticipated "Cash for Clunkers" program has a full head of steam for automotive dealers all over the U.S.  Dealers have been busy utilizing the funds to move what was an aging new car inventory fleet and taking the cash from Uncle Sam.  After quickly running out of cash not realizing the adaptability of auto dealers to move rapidly into retail mode, the U.S. government is said to have replentished the program with additional funds keeping "Cash for Clunkers" alive.  

But is this a receivables nightmare in the making?  Time will be the teller of that tale when all the money is used up and sitting on the receivables of over 20,000 automotive dealerships' books.  We rely on our managers to make the right decision when qualifying these transactions and unfortunately there will be some dealers that end up with deals that should not have been put into this program for qualifying purposes.  What will happen with these huge balances?  Auto dealers need to still appraise these vehicles as trades to get a snapshot of the exposure.  They also should go through an internal audit daily tracking the program's transactions to have a few heads verify the plausability of the qualifications of each deal limiting your exposure.  With a few simple steps dealers can take the "Cash for Clunkers" program to the bank.

If your dealership would like to see how this program can be receivable proof in your dealership contact Dealership Experts in Dallas for a free initial consultation.