Just got off the blower with Rae Tyson, stalwart spokesman for the Department of Transportation's Cash for Clunkers (a.k.a. C.A.R.S.) program. Although Tyson doesn't have the exact stats, he revealed that the agency has rejected significantly more than 25 percent of dealer submissions for government reimbursement. The bottleneck is regrettable, Rae said. But the number represents safeguards against fraud. The clock is ticking. As of this morning, US car dealers have submitted paperwork to the C4C program for 390,283 vehicles. That represents $1.63 billion from the $3 billion total. Minus the $50 million processing fee. So there's $1.34 billion and change left in the kitty. [Top ten reasons for C.A.R.S. rejection below. Meanwhile, NADA spokesman Chuck Cyrill says, a lot of dealers are pulling out of the program. Cyrill contends that cash flow problems caused by paperwork issues are causing dealers to limit their exposure. The remedy is the experience. To address dealer concerns with a backlog of reimbursement claims, DOT has informed NADA that it will commit to deploy an additional 1,000 employees to speed up its processing efforts.
10. Missing trade-in registration
9. Trade-in not registered to same owner for required 12 months
8. VIN mismatch on summary of sale
7. VIN mismatch on trade-in proof of insurance
6. Missing summary of sale/lease
5. Trade-in VIN mismatch
4. Missing signature on summary of sale
3. No proof of insurance
2. More than three errors in the transaction
1. Failure to brand title Junk Automobile, CARS.gov.