CASH FOR CLUNKERS: DEALERS SAY FEDERAL TRADE-IN PROGRAM STOKED SALES, INTEREST; 'A REAL SHOT IN THE ARM'.

Byline: BOB QUICK

Santa Fe auto dealers Tuesday submitted the last of their Cash for Clunkers sales documents following what one called "an extremely successful" sale that moved hundreds of cars off the lots.

The federal government on Tuesday agreed to give dealers more time to provide the proper documentation and has added extra staff to handle the last-minute rush and computer problems. Troubles with the Transportation Department's computer system were resolved by Tuesday afternoon.

"We sold over 200 new cars in the Clunkers program," said Matt Calavan, general manager of Beaver Toyota in Santa Fe. "We just flat sold out our inventory. We're waiting on about $850,000. We've only gotten paid about 1 percent of what we're owed so far."

He added: "I wasn't complaining about the business. We've just been making sure everything was done according to the requirements."

Calavan said his dealership submitted about four deals Tuesday before the deadline.

As a result of the sales, "our in-stock inventory is about 90 percent less than what we normally stock," he said, adding that the program has been "a real shot in the arm. Let's hope the momentum continues."

Charles Hensen, director of the New Mexico New Car Dealers Association, estimated that as many as 2,000 vehicles were sold in the Cash for Clunkers program statewide.

"Sales ranged from half a dozen at some dealerships to many more at such dealers as Beaver Toyota and Rich Ford," he said. "It's done a great job of moving the industry."

But Hensen added that there was a "substantial failure in the administrative process" of the Clunkers program that was causing a slowdown in the payments process.

"We can only hope it will be corrected in the next few days," he said.

Don Bonar, general manager of Premier Motor Cars of Santa Fe, said he sold about 90 vehicles, most of them Subarus and Hondas. A few Volkswagens were sold as well.

"Right now we're a little slim on Hondas and Subarus," he said. "But a lot of Subarus are coming in. We planned ahead for that."

Bonar called the program "a good shot in the arm for New Mexico auto dealers." But despite that success, smaller auto dealers are still likely to fail because they can't sell enough cars to survive, he added.

At Lithia Chrysler Jeep Dodge of Santa Fe, sales during the Clunker program came to about 20 vehicles, said general manager David Dunn. Most of the clunkers were made between 1985 and 1995 and included several heavy-duty trucks.

In order to maintain the enthusiasm of the Clunker program, Lithia is offering used vehicles for $5 each for three days -- Thursday, Friday and Saturday. The winning buyers will be selected with a drawing from entries received that day.

Dunn described the vehicles to be sold for $5 as trade-ins that will have 60-day warranties. He said he couldn't put a value or a year on them.

At Santa Fe Chevrolet

Cadillac and Saab, general sales manager Dave Craver said

his dealership sold about

15 vehicles in the Clunker program. "The import stores did better because they have a better selection of fuel-efficient vehicles," he said.

His dealership and others selling General Motors vehicles have benefited more from supplier pricing, an incentive that started the first of July and resulted in many sales.

"We started the Clunker program with a low inventory," he said.

Chalmers Capitol Ford Lincoln Mercury sold 58 vehicles in the Clunker program, "a lot more than we thought we would," said Alan Belt, the dealer's Internet manager. "The program generated a lot of excitement. It also brought people in who bought vehicles that didn't qualify for the Clunker program."

After the clunkers are taken over by the dealers, the clunkers' engines are treated with sodium silicate, which freezes them, Belt said.

The vehicles then go to a junkyard, where their parts are removed and resold if there's a market for them, he said. "The one thing that cannot be resold is the engine."

Salvage yards pay dealers $100 to $500 for the cars. They, in turn, sell the car parts to body shops. A transmission can go for as much as $400.

By early Tuesday, dealers had submitted 665,000 vouchers totaling $2.77 billion. Many dealerships worked overnight to submit each trade-in vehicle's 13-page reimbursement application, including the title, proof of registration and proof of insurance.

The Associated Press contributed to this report.