DOT Says "Cash for Clunkers" Program Still in Effect

Editors Note: As of 10:48 AM the websites of C.A.R.S, and the NHTSA sites show business as usual for the Cash for Clunkers program. At 11:30AM EDT I spoke with a representitive of the NHTSA who told me there has been no official notification of any changes in the program...stay tuned!

Washington DC July 31, 2009; The AIADA newsletter reported that despite widespread reports yesterday evening, Cash for Clunkers has not been suspended.

However, NHTSA has expressed concern over the program's funding levels. "Clearly, this has been a very stimulative program that's got consumers back into the car market.

It's our hope that possibly more funds can be made available," AIADA President Cody Lusk told the Washington Post, noting that AIADA has fielded hundreds of calls from frustrated dealers who have had problems entering vehicle data into the program's Web site. He said frequent crashes of the site have made it harder for car sellers to complete deals.

DOT is currently reporting that registered dealers should continue conducting transactions since all deals concluded before a suspension is announced will be honored.

The administration is currently looking at all options to add funds to the program and NHTSA is doubling the number of personnel reviewing transactions, in order to speed up the reimbursement process.

AIADA said it will continue to monitor the Cash for Clunkers situation and provide details when they become available.