The "cash for clunkers" program may be a victim of its own success.

Reports this morning indicate the program may have to be suspended after a rush of sales depleted the program’s budget.

Yesterday, the National Automobile Dealers Association (NADA) released a survey of its dealers indicating more than 200,000 sales had been made since the program began. Based on initial data from the National Highway Traffic Safety Administration (NHTSA), which runs the program, the average credit consumers have received for their old clunkers so far is $4,215. Based on that amount, the government may already have spent $843 million of the $950 million allotted for the program. ($50 million of the $1 billion was allocated for administrative purposes.)

Today, NHTSA and the NADA are reviewing the program to determine whether to suspend it until all sales can be accounted for. In the mean time, the program will continue at least for today.

The Obama administration and some Congress members are looking for ways to extend funding for the program. Senators Diane Feinstein (D-CA) and Olympia Snowe (R-ME) have called for the program to be extended with higher mileage targets than before, which would effectively stretch out the program.

Meanwhile, the supply of eligible new cars on dealers lots is diminishing. The Toyota Prius now has a waiting list, and we have heard reports that Toyota RAV4s, Subaru Imprezas and Foresters, Volkswagen diesels and other high-mileage cars are in short supply.

So if you’ve been considering taking advantage of the clunkers program, we suggest you get down to your local car dealership today. But approach with caution and read the fine print. Should the program be halted soon, you need to make sure you are not commited to a purchase you would not want. Likewise, you want to make sure your junker isn’t deactivated before the credit is approved.

—Eric Evarts

For more information on the cash for clunkers program, see our guide. Also, check out our forum to share your buying experience.

Also read:
Cash for clunkers: Recommended cars that qualify for a voucher
Cash for clunkers: The best gas guzzlers to junk
Cash for clunkers: Compare the fuel savings
Cash for clunkers: Fuel and owner costs
Cash for clunkers bill cuts fuel consumption–running the numbers