NADA Statement on the End of the Cash for Clunkers Program

WASHINGTON (August 20, 2009) - 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 today 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.”