Brian Benstock - "Clunker" Breakdown

By LUKAS I. ALPERT
July 31, 2009

The "cash for clunkers" program has crashed.

A government rebate plan for people buying new, fuel-efficient cars to replace their old gas guzzlers was halted yesterday after less than a week as heavy demand threatened to wipe out the $1 billion budgeted for it, officials said.

A huge backlog in processing orders made Transportation Department officials worry that the funds -- paid out in rebates of $3,500 to $4,500 per sale -- had already been spent. Through late Wednesday, 22,782 vehicles had been bought under the program, but a survey of 2,000 dealers found about 25,000 deals had not yet been processed. With about 23,000 dealers taking part, officials believe the program has already surpassed its budget of 250,000 vehicle sales.

"There was a huge amount of interest, and it just crashed the system," said Brian Benstock, owner of Queens-based Paragon Auto, which has sold 56 rebated vehicles.

Some in Congress have sought more money. "This is simply the most stimulative $1 billion the federal government has spent," said Rep. Candice Miller (R-Mich.).