In New York City the Greater New York Automobile Dealers Association has said about half of its 425 members have withdrawn from the government's cash for clunkers program because they are not getting repaid from the federal government.
Dealers can no longer afford to give the rebates. "(The government) needs to move the system forward and they need to start paying these dealers. This is a cash-dependent business," said the group's president, Mark Schienberg.
While dealers are seeing great floor traffic, only about 2% of all the cars sold have gotten the rebates back from the government. According to the DOT, auto dealers have made deals worth $1.81 billion, which is about 435,102 new car sales.