Reply to "Cash For Clunkers Program is a Clunker!"

If you, as a dealer, are unable to follow, complete and abide by the rules, then do not participate in the program. The government is GIVING you $3500 or $4500 cash. If the program does not work for you, then do not participate.

Please do not whine about the handout.

Just walk away from the government and sell cars via the old fashioned way-that is to say, with no government intervention.

Jeeez!

From the CARS website:

Rejected Applications: If an application does not fulfill every detailed requirement of the 126 page regulation, it will be rejected. NHTSA has confirmed that approximately 80% of all submittals have been rejected for one reason or another. When an application is rejected, it goes to the back of the processing line, leading to further delays. The top categories for rejection are as follows:

1. Failure to Brand Title: Dealers are required to brand both the front and back of the trade-in title with “Junk Automobile, CARS.gov” using indelible ink either by hand or with a stamp. Failure to do so will result in the rejection of the application.

2. Failure to Submit Documents: Be sure that you submit all required documents as part of the transaction—this will be the first thing that the reviewers will look for on their checklist. Do not use a color scanner to copy application documents – the file will be too big for them to receive by email.

3. Summary of Sale/Lease & Certifications Form Incomplete or Not Signed: Pages 4 and 5 of this form contain places for the dealer and customer to sign certifications under the penalty of law. Several dealers merely fill out the form afterward without getting the customer’s signature. Also, a dealer may not merely include the front pages and signature pages when submitting the transaction.

4. VIN Mismatch: With staff manually inputting 17 digit VINs into the system several times (without an automated VIN check feature), mistakes can and will happen. Be sure to advise your staff to pay close attention while entering this data—one wrong key stroke will result in rejection of the deal.

NHTSA has released the following table listing the most common rejection codes as of August 6th. These continue to be the main reasons for rejection:

Error Code
Reason for Rejection
Reject %
Quick Guide Page

201
“Junk Automobile, Cars.gov” not written on Page 1 and 2 of Title
13.58%
16-17

999
3 or More Errors Found***Recheck Entire Transaction
10.42%


302
Proof of Insurance not current and in force for previous 12 months
9.06%
18

701
Missing signature(s) on Summary of Sale
8.62%
21

703
Trade-In VIN Mismatch on Summary of Sale
5.37%
21 & 29

116
Missing Complete Summary of Sale/Lease
4.92%
21

301
VIN Mismatch on Trade-In Proof of Insurance
4.67%
18

704
New VIN Mismatch on Summary of Sale
4.07%
21 & 29

403
Trade-In not registered to same owner for previous 12 months
3.58%
19

108
Missing Trade-In Registration
3.06%
19

101
All Attachments missing
3.01%
14 & 27-28

114
Missing Fuel Economy.gov Side by Side Comparison
2.80%
24

203
VIN Mismatch on Trade-In Title
2.39%
16-17

601
Side by Side Trade in Category Does not Match
2.23%
29-30




NHTSA advises dealers who have pending applications to review their outstanding transactions against this list and be prepared to resubmit the application with any necessary corrections.