More Dealer Woes? Study Finds Clunker Program Is Rejecting More Claims Than It Is Approving

A national study conducted on August 27 by the National Automobile Dealers Association has found that only 5.7% of dealer rebates for CARS "Cash for Clunkers" claims had been paid. The CARS program ended August 24, with dealers being allowed a daylong extension on filing rebate claims with the government for reimbursement. As of the survey date, a full 83.7% of clunkers claims are still under review by the U.S. Department of Transportation.

Additionally, the survey found that 6.3% of clunkers claims had been rejected, 2.3% had been approved but not paid, and 2% had no status. According to an Automotive News report, Rep. Michael Rogers, R-Mich, asked DOT officials about NADA's 5.7% rebate figure and was told that the correct amount "was closer to 10%."


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0to60 - 9/3/2009 12:33:24 PM

+6 Boost

I can imagine many of the sleezy dealers tried to resale the vehicles. I am happy to see the govt is actually ensuring the validity of the claims instead of just paying it.

Whelan - 9/3/2009 1:21:23 PM

-2 Boost

I'll be happier when Obama is not in office destroying our country turning us into the U.S.S.A.

LexSucks - 9/3/2009 2:22:18 PM

+6 Boost

It's Obama's fault why they can't get credit?

It's Obama's fault why the dealer dealer didn't approve them?

Some folks here are just plain retarded. Guess they'd rather have Rush Limbaugh and Glen Back running things. LOL!

bfghemicuda - 9/3/2009 9:33:42 PM

-1 Boost

Yor right It is Obamas fault. This whole mess Is his fault. I respect him as our President but I do NOT have to agree with his policies.

monkeyrun - 9/3/2009 2:56:05 PM

-1 Boost

lol I wonder if the dealer will ask for the car back.

Janizary - 9/3/2009 5:17:40 PM

+1 Boost

For those buyers that were conned into signing contingency agreements that could very well be the case. There have been a few articles floating around regarding some dealers getting buyers to sign agreements on liability if the application was rejected.

quizz - 9/3/2009 5:57:00 PM

-1 Boost

Consumers should file counter-suits. Dealers knew full well that the ONLY reason the consumer traded-in their car was for the $4,500 clunker program. Let's see how expensive it gets for the dealership once an attorney turns it into a class action lawsuit. Plaintiff class-action is free to the Plaintiff but costs about $1 million for the dealership to defend.

delan - 9/6/2009 8:46:34 AM

+1 Boost

009, are we gonna start talking about health care when this clunker shit blows over?

delan - 9/6/2009 8:46:35 AM

+1 Boost

009, are we gonna start talking about health care when this clunker shit blows over?

TheDepressingTruth - 9/6/2009 2:45:25 PM

+1 Boost

The first weekend of Cash for Clunkers, a lot of dealers got burned because the Administration told dealers that the $4500/$3500 was NON-Taxable income to the dealers because it was a government grant...On the following Thursday...the IRS ruled that it WAS taxable as regular income...dealers that made trades based upon NON-taxable income statement lost money on the deals...some even had to "come out of pocket" to complete the deals

AND NOW THIS !