Program ran out of funding after four days
By Martin H. Bosworth, ConsumerAffairs.comThe much-vaunted "Car Allowances Rebate System" (CARS)--more popularly known as "Cash For Clunkers"--where buyers could trade in their old gas-guzzler for a $3,500 or $4,500 voucher towards a more eco-friendly car, has been suspended after less than a week and roughly 250,000 cars sold.
The program certified 22,782 car trades since Monday, according to the National Highway Traffic Safety Administration (NHTSA), but a survey of automobile dealers found that there was a backlog of 25,000 trades still awaiting clearance. The agency also rejected many claims due to illegible or incomplete paperwork, according to the Detroit Free Press.
Many auto dealers around the country were reporting brisk business as a result of the program, while others were claiming the procedure for approval was too difficult and was leaving them unable to make transactions.
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