Survey: Cash for Clunkers is tapped out

Survey: Cash for Clunkers is tapped out: "All of the money authorized by Congress for the Cash for Clunkers program may already have been spent.

Late Tuesday, the National Automobile Dealers Association in Washington, D.C., released a survey of its members that estimated they have submitted claims for nearly $3.3 billion. The Cash for Clunkers program is only authorized to spend $3 billion.

Originally, Congress authorized $1 billion to jump-start the stalled auto industry by offering rebates between $3,500 and $4,500 to owners of low-gas-mileage clunkers if they trade them in for new, more fuel-efficient vehicles. Under the program, dealers offer buyers the rebates up front and then apply to the government for reimbursement.

The rebate money was gone in a week, and the additional $2 billion approved Aug. 6 now appears to be claimed as well, according to Billings dealer Bill Underriner, co-owner of Underriner Motors and a NADA board member.

'I think within days this program will be suspended. And I don't think this thing will get funded again,' he said.

Congress is in recess until Sept. 7, and even if members were inclined to add more money, nothing would be decided until they return to Capitol Hill in three weeks.

NADA, which claims that 92 percent of U.S. automobile dealers are members, polled them in a survey that ended Monday. The survey found that 17 percent of the clunker applications totaling $544 million have not been submitted yet to the National Highway Traffic Safety Administration, which is in charge of this program."