By most measures, the Cash for Clunkers trade-in program has been a success.  So many Americans took advantage of the opportunity to trade in an aging vehicle for up to $4,500 toward a more fuel-efficient car that the program nearly ran out of funding in its first week – pulling hundreds of thousands of gas guzzlers off the road and pouring a shot of adrenaline into the economy.  The program hasn’t been without snags, however.  Many dealers, in fact, say they still haven’t received government payments for most of the clunkers they have taken in.

The Detroit News reports, “The U.S. Transportation Department is ramping up efforts to speed payments to dealers under the $3 billion ‘cash for clunkers’ program.  By the end of the week, the government will have about 1,100 workers processing voucher payment requests of up to $4,500 each, or triple the current number.” 

The National Highway Traffic Safety Administration, according to Kicking Tires, “Initially expected to need only 30 new hires and 200 contract workers to process the program’s claims, but quickly decided to increase those numbers when dealers flooded the online reimbursement system following the program’s debut.”  The agency now says “dealers can expect to wait about 10 days to be repaid,” assuming their paperwork on a qualifying transaction is in order.

Payment delays have led some dealerships to try to protect themselves with questionable practices.  Autoblog notes, “Some dealers have even resorted to making customers sign forms to ensure that the dealership gets its money if the government money doesn't materialize.” 

The Los Angeles Times explains, “In some cases, the groups said, dealers are requiring buyers to sign contracts obligating them to repay the program's $3,500 or $4,500 rebate if the government denies the claim -- despite a federal advisory stating that customers are not required to sign such agreements.” 

If you're interested in the American Cash for Clunkers program, check out our Cash for Clunkers page.  If you’re ready to buy, contact local dealers. For the latest news on the program, check out Cash for Clunkers news.