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65% of CARS Sales Are Still Offline

Cash for Clunkers Sales Submission

I would like to remind all dealers on this forum to get their Cash for Clunkers sales posted in the NHTSA system for reimbursement as quickly as possible. The reason is simple; by keeping these transactions offline, the NHTSA record keepers can not properly account for the depletion of CARS funding.


In a survey I conducted today, only 35%of the cars sold under the CARS program were submitted into the NHTSA online reimbursement system as of July 28, 2009. Of those submitted, only a percentage have been approved by the NHTSA since all sales have to be manually reviewed.


By extrapolating the survey data would indicate that thousands of cars sold under the Cash for Clunkers program are still offline. When the dealers get around to submitting these car sales this week, the funding dollars can evaporate quickly. Some dealers reported selling 20, 30 and 40 cars and had submitted zero to the NHTSA system. How many dealers on this forum are in the same place?

This begs the question of how long will the $1 billion in funding last. We predict that it will be gone in early August because of the delay in processing the data. This will be an expensive game of musical chairs for car dealers that have unsubmitted sales when money runs out.

CARS Submission Delays


The CARS submission backlog according to dealers polled in the survey is being caused by a number of factors which include:
  • New forms released on Friday require consumers to come back to dealership to sign paperwork.
  • Dealers are getting booted off the web based submission system.
  • The submission process is lengthy and staffing is an issue.
  • The sales will be rejected for incomplete documentation so compliance review is needed.
  • Some car dealers still do not have a proper login to submit their sales.
  • Some deals are waiting for NHTSA approval since cars are missing from Fuel Economy website.

NHTSA Initial Sales Data


The NHTSA released numbers today saying that 4,026 sales have been processed totaling 17 million dollars but has to be only a fraction of what has been submitted and an even smaller fraction of the outstanding cars that are still not submitted.
We believe the public is underestimating the incoming flood of car deals over the next week. We encourage consumers to make their buying decisions quickly.

We also believe that car dealers should be very concerned about has fast they can submit their sales for reimbursement. Those who wait may find themselves holding a deal that can not get reimbursed.

For real-time updates on CARS you can follow me at; http://twitter.com/cashclunkers

Views: 5

Tags: augustsales, cashforclunkerssales, julysales, offlinesales

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Comment by Brian Pasch on July 29, 2009 at 11:50am
I just got a call from a Honda dealer that has 18 sales and can't figure out how to submit the sales. I hooked him up but there number of offline sales is huge.

And the national media is not covering the story that the NHTSA web based CARS submission system is practically broken if dealers have to plan on submitting sales after midnight to get them to go through reliably.
Comment by Rob Fontano on July 29, 2009 at 6:38am
After finally making it through the registration period, we are now working through the actual transactions. If this is any semblance of how health care reform will be run, We're screwed!
Comment by Brian Pasch on July 29, 2009 at 5:56am
Oh they are...they are complaining that the NHTSA website boots them out during the submission process. I dealer emailed me that did his first submission yesterday and the first one took 1.5 hours. If you have 52 deals to enter I don't envy you. Think Xanax
Comment by Mike Warwick on July 29, 2009 at 4:01am
Can't submit them until we get our authorization emails. I'm confident that there are very few dealers sitting on deals who have their authorizations.
Comment by Brian Pasch on July 28, 2009 at 6:24pm
Have you submitted the 52 deals?
Comment by Mike Warwick on July 28, 2009 at 4:50pm
Still haven't received confirmation emails. Sitting on 52 deals. Massachusetts sales tax increases 25% this weekend. This is shaping up to be pretty interesting. Where do I sign up for government run health care?

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