NADA asks government to suspend Cash for Clunkers program

The National Automobile Dealers Association has asked the Department of Transportation to suspend the Car Allowance Rebate Program immediately. The dealer group says data from an informal survey of its members indicates there are already enough claims in process to exhaust the $3 billion fund and it does not want dealers to be left with unpaid claims when they have already extended the credit to a customer.

“We asked them to put a halt to the program — I think we said ‘very soon’ — but a suspension at midnight tonight would make sense,” John McEleney, NADA chairman said in an interview today. “Our survey opened the eyes of the Transportation Department.”