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Monday, 03 August 2009 10:04

Dealers Can Wait to Disable CARS Engines Now

The "cash for clunkers" program used to require dealers to wreck the engines with a corrosive solution before the dealer could request reimbursement from DOT. Dealers must certify on their rebate applications that they will corrode the engine and ship the vehicle to an approved disposal facility or salvage auction.

The U.S. Transportation Department changed its requirement on July 31 because dealers were in danger of  ruining engines before discovering that the rebate application was  turned down.

"The government has concerns about how much money is in the program, and it doesn't want to leave dealers high and dry," the spokesman, Bailey Wood, said in an interview Aug 1.

The new rule, posted on the federal Web site, requires dealers to store the vehicle on their property and disable the engine within seven days of government reimbursement for the $3,500--$4,500 credit paid to customers.

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