URGENT UPDATE FOR DEALERS: NEW RULES ESTABLISHED FOR CARS PROGRAM, EFFECTIVE IMMEDIATELY

Washingtron DC August 1, 2009; AIADA has learned that the National Highway Traffic Safety Administration (NHTSA) has established new rules - effective immediately - for the Car Allowance Rebate System (CARS). The changes made to the rule NHTSA published on July 24, 2009 refer to the engine disablement process and proof of insurance for the states of Wisconsin and New Hampshire.

Because of overwhelming concern from dealers, NHTSA has amended its rule to allow dealers to submit CARS transactions prior to killing the trade-in vehicle's engine block. However, disablement must still occur before the trade-in leaves the dealer's property.

The certifications on the Summary of Sale form have been amended to reflect the adjusted requirement concerning engine disablement, and the certifications on the electronic form submitted by the dealer will be changed accordingly in the near future. You will soon be able to visit www.CARS.gov/dealersupport (http://www.cars.gov/dealersupport) to download this new form.

In addition to the new engine immobilization requisite, NHTSA has made an exception for the states of Wisconsin and New Hampshire with regards to insurance verification - also effective immediately - that proof of insurance is no longer required.

The CARS website will be updated with the following information:

*Car Allowance Rebate System (CARS) still operating.

*Consumers can still take advantage of the government program and receive a $3,500 or $4,500 discount for their qualifying trade-in vehicle when purchasing or leasing a new vehicle.

*A complete list of eligible vehicles and eligibility requirements.

Helpful Resources:

*Allegations of fraud may be reported to the 24-hour NHTSA hotline at 1-800-424-9071.Use this link to