CARS (Cash for Clunkers) RULES & PROCEDURES ISSUED
Update Below

www.cars.gov (Official link) Final Rules for Program Expected by July 23, 2009

Dear TARA Members,

I have tried to condense the information I have collected on this new program. Please note that this program was "affective" on July 1, 2009, but the specific regulations for the program will not be made available until July 23, 2009. I have already seen car dealers advertising this program. Until the regulations are posted, all the specifics set out below could change. Thanks Cheryll - Ex. Director TARA

One Billion Dollars in Vouchers

In June 18, The Senate passed H.R. 2346 which includes the Consumer Assistance to Recycle and Save Act of 2009 (CARS), more commonly known as "Cash for Clunkers: The stated purpose of the house version of this is to create motor fuel savings nationwide and provide incentives to registered owners of high polluting automobiles to replace such automobiles with new fuel efficient and less polluting automobiles. One Billion dollars worth of vouchers to offset the lease or purchase price of new cars and trucks will be given starting July 1, 2009. Car buyers, who have a trade-in that qualifies, will be able to go to dealerships with $3500 - $4500 in retail incentives provided by the federal government.

Qualifying Vehicles

Trade in vehicles that qualify for these incentives must be in drivable conditions, model year of 1984 or newer, if a car, a combined fuel economy rating of 18mpg or less, have been continuously insured and registered to the same owner for at least one year prior to trade-in date and be valued at less than $3500-$4500 as determined by the dealer.

Dismantlers Requirements

Similar to the Texas Air Check Program that started last year, there are procedures for the disposal of trade-in vehicles to ensure the proper removal of fluids, mercury switches and other toxic or hazardous components prior to crushing or shredding of these vehicles . The law specifies that dismantlers can sell parts from these vehicles except for the engine and the drive train, unless the transmission, drive shaft, or rear end are sold as separate parts . However, unlike the Texas Air Check Program, the dismantlers can retain the profits from the proceeds of the residual scrap metal sent to the recycler.

UPDATE

Members Urged to Register for Mercury Switch Program

The regulations and procedures for the Car Allowance Rebate System (CARS) program were released.  The list of facilities to which dealers may transfer trade-in vehicles consists of recyclers who have registered with the national mercury switch removal program. To access this list, go to www.cars.gov/dealer/disposal-and-salvage.

Members who want to participate are urged to register for the national mercury switch program by completing the online registration form located at www.elvsolutions.org/contact.html.

As a requirement for participating in the CARS program, the disposal facilities and salvage auctions are also required to provide the federal government with certain information and certifications regarding each eligible trade-in that they receive. These forms are available on the CARS website link provided above. More updates will be issued as when further clarification on these regulations is received.