They have the clunkers, but it’s been a stressful week as local auto dealers waited for the cash part of the “cash for clunkers” program.

“We have a situation where people are coming in to get vehicles, and it’s great, but the system of getting them approved is seriously flawed,” said Kade Vershey, general sales manager at Dave Syverson Auto Mall.

About 20 cars have been sold at Motor Inn Co. through the popular federal program, said owner Dave Christensen. Vershey said 26 cars have been sold through the program at Dave Syverson Auto Mall. As of Friday, neither dealer has had an application approved, and no deals had been approved in the state of Minnesota.

Christensen described the program as a can of worms.

“You do everything you’re supposed to do and just sit and wait,” Christensen said.

“You have to make sure every I is dotted and every T is crossed exactly the way they want it,” Christensen added.

On Friday, the House approved another $2 billion for the project, and the Senate is expected to vote this week. President Barack Obama said he was encouraged by the House action to keep alive a program that had “succeeded well beyond our expectations.”

Called the Car Allowance Rebate System, or CARS, the program is designed to help the economy and the environment by spurring new car sales. Car owners can receive federal subsidies of up to $4,500 for trading in their old cars for new ones that achieve significantly higher gas mileage.

However, dealers are not viewing the program as a success yet. Vershey said there has been conflicting information released about the status of the program, so he said it’s difficult to know where you stand as a dealer.

As of Friday, no more cars were being sold through the program at Motor Inn or Dave Syverson Auto Mall.

Even before the cash for clunkers program, Christensen said business was good at Motor Inn. He said the program has brought new people to car dealerships.

“They’ve stepped things up quite a bit. If the thing was a simple program, it would make things much smoother,” Christensen said.

Tim Charron, maintenance director at Americas Best Value Inn, turned in his 1987 Jeep Comanche and bought a 2009 black Mercury Milan through the federal program.

Charron bought the car July 24 at Dave Syverson Auto Mall, and he said everyone there was very helpful. The jeep qualified for $3,500, Charron said.  

“Very simple — they took care of everything, as long as my clunker met all their conditions,” Charron said.

“Fantastic, saved a lot of money on a new car,” he added.

However, the complicated nature of the program and the application process has led to high stress levels at many local car dealerships.

“The goods of it is we’ve sold vehicles, and people are coming in. The bads of it are: The government has changed qualifications in midstream. The bads are how difficult the submittal process has been. The illegitimacy of turn down. The paperwork. And just the stress factor. We’re sitting on a lot of money that may not come our way,” Vershey said.

Once a deal is done, Vershey said it takes an hour and a half to two hours to submit each deal.

Both auto dealers said many applications have been rejected. When an application is rejected, the dealer resubmits an application, but that vehicle is at the bottom of the list.

If the Senate fails to approve more funding next week, the customers are the ones who will struggle, Christensen said. Before a car can be submitted to the program, the engine needs to be disabled. This means a customer can’t get his or her car back if the money isn’t approved for that sale. Versey said he’s not sure what will happen if the government doesn’t approve additional funding.

All the cars turned in for the program go to salvage yards and must be crushed.

As long as the program exists, Vershey said Dave Syverson Auto Mall would take part in the program.

“If I get confirmation, and it is fact, that there’s $2 billion more and they’re taking more deals, we will gladly help people in anyway we can,” Vershey said.

At Motor Inn, the stock of new cars is dwindling because Christensen said business had been strong before the program and because GM plants were shut down for much of the year.

While Christensen questioned the necessity of the program, he said this program could be a positive one in the future.

“It can be a good thing, but we’re kind of in the twilight zone — we’re in an area we’ve never been in before,” Christensen said.