The Senate finally voted to approve the $2 Billion dollar funding bill for the popular NHTSA CARS program. The funding will carry the Cash for Clunkers program through the Labor Day weekend.

We anticipate that the $2 billion in funding is already partially spent so the monies approved today will not last very long.

Car shoppers who qualify are encouraged to get out to a local car dealer as soon as possible.  This word of advice is to avoid being stopped out of the Cash for Clunkers program.

Automotive dealers have been pleased with the showroom traffic and interest in the CARS program but the funding can not last much past Labor Day based on current sales numbers released by the NHTSA and survey that we have taken.

Cash For Clunkers Checklist

Qualifying consumers are reminded to check program requirements BEFORE going to a local car dealers.  Here is are suggested steps for success:

1. Download our Cash For Clunkers Checklist
2. Using our checklist, go to www.cars.gov and qualify your clunker.
3. Understand that if you don’t qualify, your local dealer cannot change the rules.
4. If you want a local dealer to contact you, complete the form on the left or you can call ANY local dealer to see if they have the car you want in stock.
5. Review all factory rebates that may be added to your CARS credit. Check our list
6. Negoitate your best deal.
7. Keep in mind that you may not be able to drive away with your new car untill all your paperwork is approved by the government.

Video Snapshots From C-SPAN Video Coverage

Senator Richard Shelby says the Cash for Clunkers program is a “clunker”. He claims that many clunkers that were traded in would have been traded in normally without any stimulus needed.		Senator Johnny Isakson is an advocate for a Home Buyer Tax Credit plan to help stimulate the housing and real estate industry. Refers to Cash for Clunkers as a successful program and wants a similar plan for housing.
Senator Debbie Stabenow encouraged the Senate to continue the stimulus bill saying it is a tangible program that consumers can see and feel. She calls the bill a winner. She also asks that no ammendments be adopted which would derail the bill since House is out of session.		Senator Carl Levin urged the Senate not to add any ammendments to the House Bill which would put the death spike in the heart of the Cash for Clunkers Bill. He pointed out that many good amendements would have to be considered when the Senate returns in September.
Senator Jon Kyl wanted to introduce an amendment that would put the CARS program on hold to review spending and make sure deals that were submitted get paid. If the amendment was approved the CARS funding bill would be killed.		Senator Judd Greg claims that his amendment would make sure that the $2 billion in CARS funding debt is not passed to our children. If the Gregg amendment was approved the CARS $2 billion funding bill would have been killed for immediate future.
Senator Tom Coburn’s amendment proposed to give the clunkers to the poor and not to crush them. If his amendment was approved it would have killed the Cash for Clunkers spending bill since the amendment would require a House vote.		Senator David Vitter proposed an amendment on the TARP program which has nothing to do with the CARS program but any new amendments introduced today would kill the Cash for Clunkers funding measure.

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.

The bill is NOT yet law as the finalized bill must be passed by Congress.  It is expected that a vote could come next week and then President Obama would sign it into law.  Stay posted because the bill seems very likely to pass.

Since the funding is only 25% of what was originally requested, the bill may only be able to provide vouchers for consumers for a limited time.  The thought seems that lawmakers wanted to get the bill started and that the one billion dollars could hold the program until the end of the fiscal year, which is September 30, 2009. 

Democratic supporters of the bill are obviously pleased with the compromise and commitment to fund the program.  A final vote is expected next week.

Consumers are encouraged to connect with a Particiapting Dealer if they are interested in purchasing a car this summer before the funding runs out.  the form on the left can expedite the process of contacting a local dealer who can assist you with your trade in and new purchase.