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WN Bottomline Clunker Sale


There is an agreement from the U.S government which has the same opinion to allow dealers to submit cash-for-clunkers transactions for vehicles ordered from industries instead of just those purchased ones at a dealership.

The verdict from the National Highway Traffic Safety Administration in reply to dealers’ complaints about decreasing inventory on loads today. The reports say that the agency has abandoned about 80% of cash-for-clunkers transactions.

NHTSA said in a statement that traders who want the first obtained vehicle must have the new car’s Vehicle Identification number (VIN) from a firm. Repayment requests still must have all the documents for the exchanged vehicle who announced after a NHTSA conference call which came today with trader group leaders. It is said by the NHTSA administrators to three trader group heads who heard that the government is rejecting 4 out of 5 deals made under the incentive. Jim Appleton, president of the New Jersey Coalition of Automotive Retailers said that NHTSA dealers have only got payments for 2% of the processed voucher requests. He further said that dealers should get paid in order to continue their work. Also, some of the dealers are flipping out. The payments in their bank accounts do not indicate their transaction number. They just get $4500, but it is unknown fact that they do not know the deal.

Karen Aldana, a NHTSA spokeswoman said that she could not have any news from the conference call. Traders must apply the clunkers program which gives consumers up to $4,500 for trading in gas-gulping vehicles for replacements with better fuel efficiency who must apply for repayments for the consumer vouchers.

Pete McNamara, president of the New Hampshire Automobile Dealers Association who was also on the call said that the rejections are because of “an indication of a broken system”. He further said that if 80% of one’s kids fail a test which means that neither someone is not teaching them nor it might be a confusing test.

The government, NHTSA and according McNamara said the No. 1 reason that traders are watching the rejection of transactions is that they are not writing “junk automobile, cars.gov” on trade-in vehicle’s title on both sides. Many dealers thought that they were following instructions and making sure that the titles had a label on both sides of which stickers could be stripped off and need to write the words. He gave a suggestion as “break out the permanent marker” to his dealers. He further added that Dan Smith, NHTSA’s associate administrator for enforcement was one among on the call.

Reasons for rejection Missing signatures on paperwork, absent proof of insurance for the trade-in vehicle or mismatched vehicle identification number for the trade-in are one among the top most Reasons. For example:- A top 10 list is posted at cars.gov/dealersupport with explanations of how to avoid making a mistake on a transaction. McNamara said that NHTSA rejected 13,000 deals overnight for having at least 3 errors their summary of sale form.

The dealers should follow the whole thing and got to start from scratch. NHTSA, said that the dealers have submitted $1.4 billion for which it overseas the $3 billion cash-for-clunkers program. The officials of NHTSA told in a conference call that they increased the number of people processing the transactions to 1,200 from about 200. They further said that they are seeking a possibility to wind down the program before funding runs out.

McNamara suggested that it will be fine with him even there is money left in the program and just not to let it run out and have dealers and consumers harmed at the end of it.

Congress approves $2B for cash for clunkers program

The congress on Friday on a unanimous vote passed the popular “Cash for clunkers” program by infusing two million dollars to keep alive the popular program which has been running out of funds. In a quick response within hours, Obama administration approved it when they came to know from Transportation secretary, Ray Lahood.

According to President Obama, “ I was encouraged by the house action to keep alive the program which was  very successful beyond our expectations”. The senate is also ensuring the program wouldn’t be affected by shortage of funds.

The program called the Car Allowance Rebate System, aka CARS was designed to boost the auto industry and increase the car sales. Car drivers can get federal subsidies in terms of electronic vouchers up to $4,500 to trade in old cars for new cars which give better mileage.

The funds for the program would be met by economic stimulus bill which was sanctioned earlier. Some dealers complain continuous rejections and have to be satisfied with chaotic clunker program. The program which was launched officially last week with one million dollar budget has been heavily publicized by government and automakers

There had been a $1 billion budget for rebates for new car sales in the program that was officially launched last week and has been heavily publicized by government and automakers, and the program was short of funds in the first week itself.

It is still very vague how many cars have been sold under this program and congress has asked the transportation department on the program progress to determine the future plan. The government assured the consumers that the program would run and be alive and encouraged buyers to buy new cars this weekend

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