NADA Update on 'Cash for Clunkers' Claims Submission Issues

Cash For Clunkers

NADA and Automotive Trade Association Executives (ATAEs) from all over the country participated in a conference call on Wednesday, Aug. 12, with the National Highway Traffic Safety Administration (NHTSA) regarding the "Cash for Clunkers" (CARS) program. NADA and the ATAEs reiterated a number of dealer concerns about the program, its implementation, and the financial burden it has placed on many dealers across the country. NHTSA recognizes that the CARS program has had a number of technical problems, and indicated that it is working hard to address those technical issues. NADA can report the following:

I. NHTSA currently has 225 employees processing reimbursement claims. They are working to increase staffing, with the goal of eventually having 1,000 people reviewing claims.

II. NHTSA stated that they would post a list of the Top 10 reasons that dealer reimbursement submissions have been rejected to date. The most common reasons for rejected deals NHTSA stated are:
-Absence of a brand, written or stamped on the front and back of the trade-in vehicle’s title that states “Junk Automobile, CARS.gov.”
-Lack of proof of continuous insurance
-Summary of Sales Agreement has missing signatures
-VIN mismatches

III. NHTSA has provided a contact e-mail for dealers to submit questions about reimbursements and other technical assistance. The e-mail address is: 9-AMC-NHTSA-CARS-AP-SUPPLIER@FAA.GOV. NHTSA stressed that this address should not be used for general concerns or questions.

IV. NHTSA stated that its computer system would be conducting an automatic review of the CARS reimbursement submissions on August 12, which will likely result in a large number of rejections. Submissions will be rejected for more obvious errors, such as a failure to include any attachments. Dealers should not be surprised to see a larger than normal number of rejections, and are encouraged to closely review all of those rejected transactions, identify the errors or omissions, and re-submit them once they have been properly completed.

V. Several recent entries on the CARS.gov Web site, including issues relating to transaction contingency agreements and the timing of vehicle delivery, have created confusion. These issues were raised with NHTSA and are under review. NADA will report any clarifications received from NHTSA.