Cash For Clunkers has been over for over a week now, but only around 120,000 rebates have been processed so far. That means $500 million of the CARS program’s $3 billion has been spent, leaving dealers holding the tab on $2.5 billion in clunker deals. There are plenty of reasons for the hold up, starting with the impressive amount of paperwork due for each Cash for Clunkers sale. Things only get more complicated from there.

According to a Reuters article, there are only around 3,000 people responsible for reviewing and processing the 700,000 CARS applications, and most of those are contractors hired by the federal government. Citigroup, inc. is responsible for handling the majority of the paperwork, and so far no one has anticipated the amount of time it takes to process each application.

In response, the federal government has announced plans to speed up the rebate process, though so far it has been tight-lipped about how exactly that will be accomplished. So far, the goal is to have the remaining 580,000 applications processed by the end of September. That may not be great news for everyone, as a good portion of the applications processed so far have been rejected. According to the NADA, around 6.3 percent of all CARS applications were turned away for one reason or another. At this point, it’s unclear who will be left holding the bill on those vehicles, or what will happen to the rejected clunkers. [Sources: Reuters, NADA]

The hugely popular Cash for Clunkers or CARS program ended Monday night at 8:00 pm. Though the rebate system resulted in over 700,000 old, gas-hungry vehicles being traded in for an equal number of efficient, brand-new cars and trucks, many dealers are still scrambling to file the proper paperwork involved in getting their deals approved. According to the Department of Transportation, as of Early Monday, over $2.58 billion worth of deals had been approved for processing – leaving just $42 million to be claimed by dealers nationwide. Fortunately, the deadline for filing has been extended to Noon, EST Tuesday, August 25 – just a few hours away.

While some analysts are afraid the massive amount of vehicle sales generated by the Cash for Clunkers program may result in something of a sales “hangover”, both manufacturers and the government say the stimulus was a success. Most manufactures have plans to boost production for the remainder of the year to replenish stock sold during the brief CARS program. That translates into more work at auto plants around the country.

Many have said the Cash for Clunkers program has done much to stimulate the economy beyond the automotive industry. Banks were required to OK the loans, and many dealers took on extra help to process the staggering amount of paperwork necessary for each CARS deal. While there’s some buzz about possibly renewing the program later down the road, for now, lawmakers, dealers and manufacturers are simply enjoying the success.

A staggering 450,000 clunkers have been traded in for new, fuel-efficient vehicles. While that’s great news for buyers, sellers and manufacturers alike, no one expected the CARS program to be so popular or so effective. After receiving an additional $2 billion in funding — upping the grand total to $3 billion — Cash for Clunkers is already tapped out. That means if you’re still holding onto a clunker, you have until 8 p.m. Monday, August 24 to trade it in for up to $4,500 toward a new, efficient vehicle.

Early estimates put the program lasting until as late as November 1, but the staggering popularity of CARS has lead to a shortage of funds. Some analysts are predicting there may not be enough money to last throughout the weekend – a claim the federal government denies, saying it has done the calculations to make sure every dealer gets paid for the vouchers it distributes.

Now the only question is whether or not the increased sales every manufacturer has seen will continue once the program ends on Monday. Many car makers, including Ford and General Motors, have upped production to keep up with demand, and now that the Cash for Clunkers program is ending, there’s some worry sales will slump off once again.

Cash for Clunkers, or CARS, has been a resounding success so far. The first $1 billion allocated for the program was exasperated in the first week, and congress has since approved another $2 billion to keep the vouchers flowing. As expected, manufacturers have seen increased sales for the first time in months. That means dealers have been swapping hold, fuel-thirsty vehicles for new green machines.

Some manufacturers have seen more success than others, and Ford has moved to increase production at a few of its plants in response. The Blue Oval has increased working hours at its Wayne, Michigan plant. That particular location is responsible for building the Ford Focus, a car that’s been a favorite among Cash for Clunkers participators. General Motors is taking a more careful stance on upping production, but foreign competitor Toyota has started cranking out extra Corollas and Camrys – two models that have been particularly successful with the help of the CARS program.

While critics of the program have insisted Cash for Clunkers would do little to stimulate the economy its clear manufacturers everywhere are stepping up production to meet increased demand. More production means more work for company employees. Sure sounds like stimulus to us. [Source: AP]

With most of the money spent for the program in around one week, congress is already evaluating sending more funds to spur fuel-efficient car purchases. The House of Representatives has already approved an additional $2 billion in funding. That means the final word on whether or not Cash for Clunkers continues on in the United States currently rides on the shoulders of the members of the Senate. While not everyone on Capitol Hill is convinced the program is a success, Democrats are vowing to keep CARS rolling, while most republicans are saying they won’t stand in the way of additional funding.

That’s good news anyone looking to get their hands on a brand new vehicle that gets better fuel economy than their old junker. [Source: LAT]

Still, not everyone’s happy with the program. The Wall Street Jounral recently ran an article detailing the number of hoops those looking to take advantage of CARS must jump through. While the government has done a good job of informing the public on the rules and regulations surrounding the Cash for Clunkers program, some buyers still don’t get, and that has caused friction. Still, it’s hard to argue with 8,000 new, efficient vehicles on our roads where gas-hogs once existed.

While the NHTSA is set to clarify the program starting tomorrow, July 24, the survey reveals most dealers believe CARS has spurred interest in new sales. Over 90 percent of those responding said consumers are showing awareness of the program, with 34 percent saying there’s a lot of interest in the program. That interest has translated into more show room visits, with 68 percent of respondents claiming Cash for Clunkers-related visits. Meanwhile, 65 percent of those responding attributed higher than average internet traffic.

It looks like Chrysler is looking to sweeten the CARS deal. The company just announced a month-long program to spur sales by offering an additional $4,500 for trade-ins regardless of whether or not the old vehicle meets federal requirements for the rebate system. For buyers looking for better financing instead of cold hard cash, the company will make 0 percent APR for 72 months available as well. That mean someone dropping off a vehicle that is eligible for the CARS program may be able to nab up to $9,000 to put toward the cost of a new, qualifying Chrysler vehicle.

According to the Detroit News, Chrysler already has one of the highest rebate costs of any manufacturer out there – averaging $1,300 more per vehicle than its closest rival, General Motors. That may have much to do with Chrysler’s lack-luster small car offerings. That’s something the company’s recent partnership with Fiat is likely to fix, though not until mid-to-late next year.

In the mean time, Chrysler’s making it’s $4,500 incentive program available to all buyers regardless of age or fuel consumption of their trade in. The program should last until August 31st and applies to most 2009 models. See the press release below. [Source: Chrysler]

Compounding issues is what some critics of the program call too-tough eligibility criteria. The fact that the vehicles must be newer than 25 years old and get 18 mpg less could be hurting interest, according to some dealers. The notion is that there may be buyers out there with older cars that still get better than 18 mpg. Under the current eligibility standards, those buyers wouldn’t be able to participate in the program to buy a newer, even more efficient vehicle. Other buyers may have cars older than the 25 year limit and want to participate.

Despite the perceived lower interest in the program, both Ford Motor Company and General Motors have set up special hot lines and Web sites to help buyers determine whether or not the vehicle in their driveway will be eligible for the program. As it is, no one knows for sure what other sort of stipulations the NHTSA may put on owners looking to turn their old car into cash from Uncle Sam. [Source: WSJ]

While that clears up registration, some dealers are concerned about the amount of funding available for the program, with a few fearful that the $1 billion allotted may not last through the end of August. Other articles point to a probable revisit of the bill in the fall. That means Congress will have another shot at ironing out any of the less than successful portions of the bill and inject more funds into CARS.

Though the NADA webinar took care of a few worries, there are still more questions left to be answered. At the moment, no one knows whether a parent will be able to use a clunker of their own for child’s new-car purchase, or whether non U.S. citizens will be able to take part in the program. The NHTSA has until the 25th to have the program up and running, so something tells us these questions will have answers by then.