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A trade group representing most of the nation’s car dealerships has asked the federal government to end its wildly popular Cash for Clunkers rebate program, worried that the pile of unprocessed rebate applications may be unmanageable for the government agency tasked with processing them.

CNN Money reports, “The National Automobile Dealers Association is urging the federal government to begin shutting down the Cash for Clunkers program immediately. In a statement released Wednesday evening, NADA said that, given the rapid pace at which deals are being done, it will be difficult to say when the program’s funds may run out.”

The program requires dealers to complete transactions assuming that the federal government will then reimburse them for up to $4,500 for each gas guzzler dealers take in – but many say they haven’t seen payment yet. The AP reports, “The president of the Greater New York Automobile Dealers Association says about half its 425 members have stopped offering rebates from the program because they can no longer afford them.” The group claims that “dealers have been repaid for only about 2 percent of the clunkers deals they’ve made, leaving many short on cash.”

Automotive News reports, “An informal NADA survey of its 18,000 members this week found that all the U.S. money had been committed,” with dealers reporting that they had applied for as much as $3 billion in total reimbursement. The organization is warning its members “that they may not be reimbursed by the government for any more cash-for-clunkers deals.”

Some dealers may continue accepting Cash for Clunkers deals, however, as some dispute the NADA’s calculations. Jalopnik reports, “Given the current “burn rate” of dollars it’s been estimated that there’s less than 19 days left of the program. The latest figures from the Department of Transportation show 435,102 submitted with a dollar value of $1.814 billion used. This should, in theory, leave $1 billion left.” That figure, however, doesn’t include as-yet-unprocessed transactions.

The government is preparing a plan for managing the end of the program. The Detroit News reports, “Transportation Secretary Ray LaHood said his department would unveil plans by Friday to wind down the program, and he sought to reassure dealers.” LaHood told reporters, “The dealers are going to get their money. There will be no car dealer that won’t be reimbursed.” But, in a statement, the NADA worried, “Given the rapid pace at which ‘clunker’ deals are being done, it is difficult, if not impossible, to accurately project the ‘burn rate’ of available funds.”

It wasn’t clear whether lawmakers might seek another funding extension. “Asked whether the administration would seek a third round of funding, Mr. LaHood played down the prospect,” according to the Wall Street Journal. “We’ve got our hands full right now,” he said.

Shoppers interested in a Cash for Clunkers deal should be cautious. Some dealers have reportedly begun asking buyers to sign two sales contracts – one that will be in effect if the government provides reimbursement for their trade-in, another that will require the buyer to pay the voucher’s value if the government does not. Transportation department regulations require dealers to assume the risk in a Cash for Clunkers transaction – shoppers may want to walk away and find another dealership if they are asked to take it on themselves.

If you’re interested in the Cash for Clunkers program, check out our Cash for Clunkers page. If you’re ready to buy, contact local dealers. For the latest news on the program, check out Cash for Clunkers news.