The National Automotive Dealers Association and the National Highway Transportation Safety Administration hosted a webinar covering the law and developing rules associated with the Car Allowance Rebate System (CARS).

The National Highway Transportation Safety Administration has until July 24, 2009 to implement the program that was created by the Cash for Clunkers bill.

Consumers can get their questions about the CARS program answered on the only official NHTSA website located at http://cars.gov.  There is also an official hotline number: 1-866-CAR-7891.

 The final outcome of today’s educational session left two popular questions unanswered. The third question, which was never submitted to this website, was brought up in the webinar and does pose an interesting inquiry.

CARS Questions Unanswered

Here are three questions that the NHTSA still has to issue a ruling on:

1. Can a parent who has a qualifying “clunker” use it as a credit toward a new car purchase that will be titled in the name of their child?
2. Can a consumer trade-in a qualifying “clunker” if it has a lien?
3. Can non-US citizens who own a qualifying “clunker” participate.

These three questions remained unanswered . The NHTSA said that their attorneys will be reviewing the law to determine the right course of action and to form a rule.

Cash for Clunkers Funding: Will It Last?

We surveyed a number of car dealers after the webinar and many expressed their concern that the CARS funding would run out by the end of August. Everyone was unclear of how additional funding may be secured. If this is the case, consumers who delay in making a decision could be left out of the program. This is not the first time we are hearing concerns about Cash for Clunkers funding.

CARS Dealer Registration Process

Dealers learned today that all major OEM manufacturers have provided the NHTSA with their dealer mailing lists. New car dealers will receive a letter from NHTSA in the mail which will advise them how to register. The official letter will be part of the official registration process.

NHTSA has promised to keep automotive dealers in the loop as the law is interpreted by NHTSA lawyers and asked for their patience. The review process to implement a law and create operational rules normally takes a much longer time. Everyone at the NHTSA is doing the best they can to get the program rules in place by the end of the month.

Tags: car allowance rebate system rukes, cash for clunkers rules