A dealership group said they are pulling out because of delays in getting reimbursed by the government.
The Greater New York Automobile Dealers Association, which represents dealerships in the New York metro area, said about half its 425 members have left the program because they cannot afford to offer more rebates. They're also worried about getting repaid.
The clunkers program offers up to $4,500 to shoppers who trade in qualifying vehicles.
Dealers pay the rebates out of pocket and then wait to be reimbursed by the government. However, administrative snags and heavy paperwork have created a backlog of unpaid claims and the group's dealers have been repaid for only about 2 percent of the clunkers deals they've made so far.