Car Allowance Rebate System (CARS)
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NHTSA Approves 90-Day Crushing Extension Vehicles
ARA SUCCESSFUL TO SECURE ADDITIONAL CASH FOR CLUNKERS
PROCESSING TIME FOR AUTOMOTIVE RECYCLERS
"NHTSA Approves 90 Day Crushing Extension — a Win-Win for Consumers"
The National Highway and Traffic Safety Administration (NHTSA) has issued its final ruling which allows automotive recyclers an additional 90 days, for a total of 270 days, to crush or shred vehicles traded in under the Consumer Assistance to Recycle and Save (CARS) program. The final rule amends regulations implementing the CARS program - also known as “Cash for Clunkers” - initially published on July 29, 2009.
ARA Executive Vice President Michael E. Wilson comments, “The additional processing time allows the Cash for Clunkers program stimulus effects to continue. By providing the consumer increased access to economical ‘green’ recycled automotive parts harvested from vehicles that were traded in under the program, consumers will benefit along with the businesses that sell those parts.” Without this extension, some cars with quality parts might have been crushed in order to meet the original deadline.”
The NHTSA final rule states that “the additional time will allow the public to benefit from the availability of lower cost used vehicle parts from vehicles traded in under the CARS program and will provide disposal facilities with an opportunity to derive more revenue from those vehicles prior to crushing or shredding.” Wilson adds, “We are appreciative of the Agency’s understanding and acknowledgement of the many consumer benefits that the professional automotive recycling industry provides.”
NHTSA initiated an official agency proposed rulemaking on November 27, 2009, that lasted 20 days to allow for public comments. The Automotive Recyclers Association (ARA), along with many ARA members, offered the Agency overwhelming support for the extension. NHTSA’s actions are a direct result of these concerted efforts seeking to alleviate the challenges that were created by the extension of the original program to the consumer without addressing the backend vehicle processing time allowances.
By extending the consumer program, three times as many cars were traded in than were expected, almost 700,000 in all, but the disposal period remained the same. This ruling now offers automotive recyclers more time to process the cars, which in turn keeps more recycled parts available to the consumer, as well. The NHTSA final rule states that “the additional time will allow the public to benefit from the availability of lower cost used vehicle parts from vehicles traded in under the CARS program and will provide disposal facilities with an opportunity to derive more revenue from those vehicles prior to crushing or shredding.” Wilson adds, “We are very pleased with NHTSA’s final ruling, and their willingness to consider our position in this matter.”
For a complete copy of the NHTSA final rule, click here.
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CARS Disposal Facility Numbers
To access the current list of entities to which dealers may transfer eligible trade-in vehicles for disposal, please CLICK HERE! You may also access the official CARS Disposal Site Certification Form.
QUICK RESOURCE LINKS
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ARCHIVED NEWS SECTION
Cash for Clunkers to End Monday at 8:00 PM
On Thursday, the U.S. Department of Transportation (DOT) announced that it will suspend the "Cash for Clunkers" auto rebates on Monday as the program nears its $3 billion budget, one month after it was launched. The announcement comes a day after the National Automotive Dealers Association (NADA) warned dealers that rebates back to them from the federal government on additional auto sales could be in jeopardy.
As of yesterday, the Agency said that it has handled 167,000, or 37 percent, of the 457,476 dealer requests submitted. The DOT didn’t say how many of the processed transactions have been paid out and how many were rejected or returned for further information. A senior administration official indicated yesterday that some $145 million, or less than 8 percent, has been paid out so far to auto dealers.
ARA will continue to update the membership on the latest news on cash for clunkers.
Automotive Recyclers Seek Clarification on Clunker Trade-In Revenue
Industry Stands Ready to Properly Process Retired “CARS” Vehicles
The Automotive Recyclers Association (ARA) is calling on the U.S. Senate to clarify an important consumer provision under the Car Allowance Rebate System (CARS) program that remains widely unanswered. The clarification centers on CARS rule language that centers on auto dealers ability to retain up to $50 of the scrap value of the vehicle for their administrative costs for participation in the program... READ MORE...
NHTSA Clarifies Key CARS Processing Issue
On August 6, 2009, the National Highway Traffic Safety Administration (NHTSA) provided clarification to question from the Automotive Recyclers Association (ARA) regarding the agency’s amendment issued on August 1, 2009. In their response, NHTSA stated that it “has not interpreted property ‘under the control of the dealership’ to permit a dealer to transfer the vehicle to a salvage auction or other party before the engine is rendered inoperable.” ...READ MORE...
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| New NHTSA Amendment Allows Automobile Dealers to Disable Engine |
| After Receiving Payment From the Government |
| Click Here for Revised Rule |
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NEW ARA Q & A RELEASE! CLICK HERE (Updated August 4, 2009 6:15 am EST)
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