R i g h t a r d i a: NADA appreciates the Administration’s effort to continue the CARS program

Tuesday, August 4, 2009

NADA appreciates the Administration’s effort to continue the CARS program

Rightardia comments: I would expect the the National Auto Dealers Association (NADA) to be sticking some hot pokers up some GOP Senators arses after Republicans threatened to slow down the 'cash for clunkers' or CARS supplemental funding bill. NADA has contributed big bucks to the GOP for years. Auto dealers have very long memories and if the GOP Seantors don't come to their senses, NADA and the state auto dealers will cut off their contributions in a heart beat.

Here are a few more updates on the "cash-for-clunkers" program:

• The U.S. House of Representatives with support from the White House, on July 31 passed a bill (H.R. 3435) to transfer $2 billion in energy stimulus funds to the cash-for-clunkers program.

• The legislation — approved by a vote of 316-109 — would ensure that dealers with pending deals get reimbursed.

• The Senate is expected to take up the measure this week. NADA has sent a legislative alert calling on dealers to contact their Senators as soon as possible seeking their support of the bill.

• NADA appreciates the Administration’s effort to continue this program and to continue helping consumers and the auto industry contribute to an economic recovery.

• Regarding auto sales going forward, one possible alternative is for dealers to take deposits in lieu of consummated sales with an eye toward legislative success this week.

• NADA understands the extraordinary difficulties dealers are having registering for the program and filing reimbursement claims. We continue working with the White House, DOT and key legislators to ensure these problems are corrected as soon as possible. (Story continues below)

Dealers across the country are finding innovative ways to advertise the cash-for-clunkers program, like the display above at the Lujack Northpark Auto Plaza in Davenport, Iowa.

"NADA aggressively supports such additional funding and is working to secure it," said NADA Chairman John McEleney, a multi-franchise dealer in Iowa. "Moreover, NADA has been given specific assurances by the Administration that all transactions consummated through today will be honored based on their belief that sufficient funds remain available. Nonetheless, until further definitive guidance on the availability of funding is provided by the Administration, dealers who accept additional ‘clunkers’ deals may face a risk that they will not be reimbursed." (Continued below)