CARS Program off to a Strong Start

Wednesday, 29 July 2009 11:19

After months of planning and speculating, the government's CARS program, also known as Cash for Clunkers, is finally in effect. Registration for the program has been open to dealers since last Friday at 7 a.m. Right away, the response was phenomenal. Already, more than 21,000 dealerships have registered as participants in the program.

Of course, there have been a few hitches along the way. Overwhelmed at the start, the CARS registration website was uncooperative through much of Friday. That night, the site was bulked up to handle the traffic, and by the weekend things were running smoothly. Since then, the site has received 1.5 million hits, while a government hotline has handled 45,000 calls.

Throughout the CARS roll-out process, AIADA has been in near-constant communication with OEM's, other dealer and manufacturer associations, and the National Highway Traffic and Safety Administration. The goal has been simple: to smoothly implement a coherent, navigable program that will benefit dealers and consumers.

So far, the plan seems to be working. The $1 billion dollar program is off to a good start, increasing foot traffic in dealerships, and helping dealers move vehicles. Already, more that $5 million in vouchers has been allocated, and there is plenty of money left. Soon, a ticker will visible at www.cars.gov showing how much money is left in the program. Beyond that, it's too early to report any solid numbers, but from what I and other dealers have seen, the CARS program could be the spark we need to ignite our recovery.

If you have not already registered, or have run into problems while trying to register, here are a few tips courtesy of the NHTSA:

• Each franchise registered must have a unique e-mail address. Entering duplicate e-mail addresses will cause the registration to be rejected and increase the amount of time it takes to process your registration(s).
• To enter your bank information, please first use the "Existing Bank" option to search for your bank by the routing number. Do not use the "New Bank" option unless you are unable to find your bank in the existing list.
• When entering your address, use the state abbreviation in capital letters instead of typing the full state name.
• To resubmit your registration after receiving a rejection notice, please use the authorization code originally issued to you by NHTSA.

A small number of dealers have not received the letter containing their registration code. If you are one of them, contact your OEM immediately. Manufacturers are working with NHTSA to resend those letters as soon as possible.

For complete guidelines on the CARS registration process, visit the dealer section of the official CARS website by clicking here. For more information from AIADA on the materials needed, and step-by-step guidance on what to expect when registering for the CARS program, click here.

Finally, please be aware that just last week the EPA adjusted fuel economy ratings on some vehicles, pushing about 100 vehicles out of eligibility for the CARS program, and including others that were previously ineligible. Please double check all mpg ratings at www.fueleconomy.gov/cars.

In the meantime, AIADA will continue to keep our members informed as the CARS program gets underway.