Cash for Clunkers Update

President Obama has not yet signed the Cash-for-Clunkers legislation, passed by Congress last week, into law. However, it is anticipated that he will do so soon.

Once signed by the President, the government has 30 days to create rules to implement the cash-for-clunkers program and an informational Web site for consumers and dealers. NADA is working with the Department of Transportation (DOT) to implement a program that makes sense for both dealers and consumers. In the interim period, dealers are encouraged to advise consumers to consult the DOT's website, http://www.cars.gov/ and EPA's http://www.fueleconomy.gov/.

Dealers are advised that "clunker" transactions completed prior to the publication of DOT regulations may not qualify for reimbursement by DOT. At this time, there is no procedure for dealers to register as a participating dealer and no approved affidavit indicating that the vehicle has been sent to a scrap yard. Until regulations are promulgated, dealers accepting vehicles under this program do so at their own risk. Dealers are not obligted to participate in the program and are advised to wait until the final regulations are published sometime in mid-to-late July so they can be certain to comply with the program.

We will provide additional information as soon as it becomes available.