Automotive recyclers seek trade-in rules clarification
The Automotive Recyclers Association (ARA) is calling
on the United States Senate to clarify an important consumer
provision under the Car Allowance Rebate System (CARS)
program that remains widely unanswered. The clarification
centers on CARS rule language that centers on auto dealers
ability to retain up to $50 of the scrap value of the
vehicle for their administrative costs for participation
in the program.
Under the rules of the CARS program, automobile dealers
are required to give consumers an estimate of the “scrappage
value” of their trade-in vehicle. While consumers are
not expected to receive trade-in values for their vehicles
because of the CARS requirement that will not allow the
vehicles back onto the roads, it is likely that automobile
dealers will receive funds in excess of $50 from either
a salvage pool auction or automotive recycling facility.
What remains unclear, and what the United States Department
of Transportation (DOT) did not specifically address
in the CARS rule, is whether the consumer is entitled
to those additional funds in addition to their $3,500
or $4,500 credit from the government.
Before the Senate passes legislation to provide additional
funding for the program, ARA believes the Senate should
address this important consumer issue and ensure those
funds go to the consumer turning in their clunker vehicle.