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Annie Baxter
St. Paul, Minn.

Some auto dealers still waiting on 'cash for clunker' approvals

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Minnesota auto dealers are still having trouble getting federal approval of their "cash for clunkers" transactions.

The federal "cash for clunkers" program gives consumers $3,500 to $4,500 to trade in a car with poor fuel efficiency for a more fuel-efficient one.

A survey by the Minnesota Automobile Dealers Association says that about 7,500 Minnesotans have taken advantage of the program so far. But the survey also says only 2 percent of those transactions have received federal approval, and 8 percent have been rejected, presumably for technical reasons, though dealers are resubmitting them.

The Minnesota auto dealers association also says that about 40 percent of dealers who have done "cash for clunkers" deals have stopped doing new ones. The program ran out of money last week.

The White House says the rebate program may not survive beyond Friday if the U.S. Senate doesn't provide a $2 billion cash infusion. The U.S. House voted in favor of such an infusion last week.