As the government's "Cash for Clunkers" program starts winding down, some dealers are dropping out early, saying they have yet to receive a dime from the feds.
>> Transportation Secretary Ray LaHood is warning the popular Cash for Clunkers program will not last forever. But many car dealers have already had enough. A New York car dealers' group says half its members are dropping out. CBS correspondent Terrell Brown is at a dealership in Wayne, New Jersey, this morning. Terrell, good morning.
>> Terrell Brown: Jeff, good morning to you. The dealership, along with, with what you just said here just now, the dealership that we're at this morning in fact, hasn't received a single payment from the government in this Cash for Clunkers program. Secretary LaHood said that money is on the way, but also said that the foundation is being laid right now to bring this program to an end.
>> Ray LaHood: We'll be announcing very soon the wind-down aspect of this.
>> That announcement came as auto dealers across America struggle with a cash crunch engine brought on by the popular program.
>>
Brown: Matt Luzio's Flemington, New Jersey, dealership has sold 103 cars under the program. So far he's only been reimbursed for one.
>> It amounts to, you know, half a million dollars that's outstanding right now.
>>
Brown: It's the same for some 200 dealerships in New York. The problem is so bad, some dealers say they can no longer offer the program. Transportation Secretary Ray LaHood promised dealers will get their money.
>>
LaHood: They're going to get their money. We have the money to provide to them.
>>
Brown: Consumers get up to a 4500-dollar discount when they trade in their clunkers for a more fuel-efficient model. That discount is paid back to the dealership by the government. And so far, the program has been seen as a big success. GM says it is increasing production by 60,000 vehicles this year. The company also plans to reinstate more than 1300 jobs. Ford, Toyota, Honda and Chrysler have also increased production. But for dealers all the extra sales mean little until the government pays up.
>> The federal government has asked the dealer to, on blind faith, to don't worry about it, you know, the check's in the mail. And when you --
>>
Brown: 3 billion dollars has been set aside to keep the Cash for Clunkers program moving forward. 1.8 billion has already been used up by car dealers already. That's more than half, so Jeff, we'll certainly have to see if that money lasts through the beginning of September.
>> Alright, CBS's Terrell Brown in New Jersey, this morning. So it continues, but not for long here.
>> Alright, and we, we should know more within the next 48 hours, so of course we'll keep you posted.
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