NADA: 'Clunkers' Money Going Quickly

WASHINGTON, July 31, 2009; Due to substantial consumer interest in the "Cash-for-Clunkers" program, the funding allocated for the program is being claimed very rapidly. In response, NADA Chairman John McEleney, a multi-franchise dealer in Iowa, issued the following statement:

"Without question, the Cash-for-Clunkers program has been very successful in accomplishing its goal of boosting new car and truck sales. However, based on the results of a spot dealer survey NADA conducted earlier this week, the $1 billion appropriated by Congress for the program may already have been - or will soon be - spoken for.

The U.S. Department of Transportation (DOT) could be forced to reject any transaction after it has paid out the $1 billion. At the same time, there are statements coming from officials in Washington indicating that the government is actively seeking additional sources of funding and encouraging sales under the program to continue.

NADA aggressively supports such additional funding and is working to secure it. Moreover, NADA has been given specific assurances by the Administration that all transactions consummated through today will be honored based on their belief that sufficient funds remain available.

Nonetheless, until further definitive guidance on the availability of funding is provided by the Administration, dealers who accept additional 'clunkers' deals may face a risk that they will not be reimbursed.

"NADA will continue to work with NHTSA to emphasize the importance that every dealer is reimbursed for a valid deal. In this regard, the White House and DOT have emphasized to us the need for dealers to make every effort to ensure that their applications are complete at the time of initial submission. We will also continue to work with the Administration and members of Congress to meet the demonstrated consumer interest in the Cash-for-Clunkers program."