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We have the final rules for the NHTSA Car Allowance Rebate System (CARS) in hand and we will continue to post our consumer comments and analysis.

To read commentary:  Click Here

Here is the 136 Page NHTSA Document: Cash for Clunkers FINAL RULES

Many questions remain unanswered.  The final rules may resolve some of the questions that consumers have raised.

Cash For Clunkers Rulings

We are hoping that the published document on the official NHTSA CARS website (www.cars.gov ) will answer some of these questions:

1. What do consumers do when their car is not listed on http://fueleconomy.gov?

2. Will cars with outstanding loans (liens) be able to be traded in for a CARS credit?

3. What procedures will be put in place to ensure that cars are not resold?

4. Will clunker owners that had short lapses in insurance or registration do to unforeseen circumstances be allowed to participate?

5. Will parents by able to pass their clunker credit to their children?

6. What paperwork will qualify as proof of continuous insurance and registration?

7. Will consumers get any part of the cash that dealers will receive from the salvage yard?

8. Will dealers be taxed for the CARS government credit as income?

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.

If you have questions about the Car Allowance Rebate System (CARS) rogram we have created three easy steps to see if you can particpate. Don’t feel bad if you are confused. Many consumers have unanswered questions.  Please be patient.  The program rules are still be finalized. The NHTSA has not been given much time to pull this all together.

The CARS program will implement the provisions outlined in the “Cash for Clunkers” bill that was signed by President Obama into law. The NHTSA is implementing the bill’s language. The NHTSA did not write the rules; our elected officials wrote the rules.

If you want to express your opinions on the language of the bill, you can click on the “SPEAK UP” button on the right and share your thoughts.

	Go to the official government website http://cars.gov for the CARS program and look-up the COMBINED mpg rating for your car.If you need help reading the EPA charts, click here.You can not skip this step. If your car is not listed, contact the NHTSA.	If your car is rated over 18 miles per gallon on the official CARS website, you do not qualify. This rating is not your actual mpg but a standard rating system for the program. There are no exceptions for cars at this time that are rated 19 mpg or higher.
	If your car is rated as getting a combined mpg of 18 or less, you cleared an important first step.Now you have to make sure your car meets the other requirements for the CARS program which includes ownership, drive-ability, insurance and age.	Go back to http://cars.gov and click on the “CARS FAQ” button. You need to read the latest rules for your trade-in.If your cars qualifies based on the latest information provided on the FAQ page, go to step 3.If you have unanswered questions, contact the NHTSA.
	If your car has passed steps one and two, you can use your car as a trade in to purchase a new fuel efficient car. You DO NOT need a voucher in advance of visiting your local dealer. There is no consumer pre-registration needed. Your local new car dealer will handle all the paperwork starting late July.	Contact a local dealer as soon as the CARS program officially is started. It is estimated that the program will start in late July.To be notified when the program starts via email, click here. When you purchase a new car make sure you inquire about additional manufacturer rebates and incentives.

If you would like a local dealer to contact you about purchasing a new car with your qualified trade-in, complete the form on the left. You can call any local dealer yourself and ask if they will be participating. You can also have us do the work for you and ask them to contact you.