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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