'Clunkers' Computer Out-of-Order for Monday Night Filing, NHTSA Reports
Dealers advised to go home and try again Tuesday morning
NADA received the following message from the U.S. Department of Transportation on Monday evening concerning the "cash for clunkers" program:
"We continue to address technical problems with the CARS website, and have determined that the website will not be fully functional before tomorrow morning. Dealers should be assured that they will be provided time to submit pending deals equivalent to the time that was lost this? afternoon while the system was down."
NADA understands that many dealers have been working well into Monday night to upload their “clunkers” transactions. NADA appreciates NHTSA allowing dealers to go home tonight and start afresh tomorrow on Tuesday, August 25. NADA urges NHTSA to set a new, sensible deadline that allows all dealers to enter their "clunkers" transactions in a reasonable time period.
NADA also reminds dealers that with the expiration of NHTSA’s original deadline of tonight at 8 p.m. EDT now past, under no circumstances should any new "clunkers" deals be consummated.
Finally, with this announcement, NADA advises dealers that they no longer need to send any e-mails regarding unsubmitted deals to either NADA or the CARS e-mail address help@cars.gov.
NADA Statement on the End of the Cash for Clunkers Program
With nearly $2 billion currently logged into the Cars Allowance Rebate System (CARS) and an unknown number of backlogged deals, the U.S. Department of Transportation announced Thursday that the “cash for clunkers” program will end at 8 p.m. EDT on Monday, August 24.
In response, John McEleney, chairman of the National Automobile Dealers Association (NADA), issued the following statement:
“Today, the Administration announced the submission deadline for all ‘cash for clunkers’ applications. Regardless of when the transaction is consummated, the application must be submitted before the deadline to be considered for funding.
“However, the National Highway Traffic Safety Administration (NHTSA) has advised NADA that any applications submitted prior to the deadline and then rejected may still be funded if the applications are subsequently corrected (even if the corrections are submitted after the deadline). This opportunity to cure the application is an essential element of the wind-down of the program.
“Both consumers and dealers participating in the ‘clunkers’ program now have clarity. And now dealers around the country can begin implementing an orderly wind-down of the program, while managing their customers’ expectations.
“With a date certain, NADA is strongly recommending that all dealers now focus their attention and efforts on submitting reimbursement claims prior to the looming deadline.
“Additionally, NADA will continue to work with DOT and NHTSA to reduce the backlog of pending applications and ensure that all dealers are reimbursed for valid ‘clunkers’ deals.”
Click here for the news release the Administration released regarding Thursday's announcement. Click here for the government's Wind Down Strategy.
NADA Works with DOT to Speed Up
'Clunkers' Reimbursements
NADA has stressed that the number one priority of the “clunkers” program is ensuring that dealers are reimbursed in a timely manner for pending deals. The U.S. Department of Transportation (DOT) is aware that many dealers have hundreds — and in some cases thousands — of “clunkers” applications pending that are worth hundreds of thousands or millions of dollars.
To address dealer concerns with a backlog of reimbursement claims, DOT has informed NADA that it will commit to deploy an additional 1,000 employees to speed up its processing efforts.
DOT recognizes these challenges, and indicated that it is working hard to address them. NADA continues to work closely with DOT, which includes the National Highway Traffic Safety Administration, on a daily basis to make sure that both consumers and dealers get the most out of the “clunkers” program.
NHTSA recognizes that the program has had a number of technical problems, and indicated that it is working hard to address those technical issues. An update on the status of these issues can be viewed here (see the "Claims Submission Issues" link).If you have technical questions, please visit our FAQ page (updated Aug. 7) or email us at clunkers@nada.org.
TIME Magazine to Launch New Site for Dealer of the Year Program
TIME Magazine, NADA's partner in sponsoring the annual Dealer of the Year award, is launching an interactive Web site to accept nominations for the 2010 award, to be presented at NADA's Convention and Exposition in February.
"We are excited to bring NADA and its members a streamlined, user-friendly new Web site, which will make the nominating process even easier," says Robin Bigelli, TIME's Dealer of the Year program director. Bigelli says the site will launch sometime in the coming weeks. Anyone with questions about the program may contact Bigelli at robin_bigelli@timeinc.com or (212) 522-0346. (Read more)
Heavy Media Coverage Highlights the Tragedy of Dealership Closings
McLEAN, Va. – The issue of dealership closings has received an unprecedented amount of news coverage recently, according to a new report from NADA-TV. “In newspaper after newspaper and broadcast after broadcast, TV, radio and online, the dealer story is being heard everywhere,” said Dale Early, chairman of NADA's public affairs committee. Watch the video below.