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1. C.A.R.S Junkers plan launches in 3 days, maybe…

   07/20/2009 by

   AS the C.A.R.S deadline for program launch looms near, (JULY 24th) there are no official notifications of dealership registration lines, websites or designated salvage yards.  Dealers and consumers are wondering what to do, as 0% interest rates and huge lot clearing rebates disappear with the remaining 2009 model year close-outs. 

    ^{So here is the actual article from the NHTSA website, NHTSA acting with EPA are responsible for overseeing this program until November 1st, 2009 or when the $1 Billion dollars in federal funding runs out, whichever comes first… On June 24, the President signed the Consumer Assistance to Recycle and Save Act of 2009 into law.(3) require that dealers use the credit as an addition to, instead of as a substitute for, other rebates and discounts advertised by the dealer or offered by the manufacturer;} 

   ^{1 The Act directs NHTSA to set up a program in which owners of vehicles meeting statutorily specified criteria may receive a monetary credit for trading in their vehicle and purchasing or leasing certain new vehicles. If all of the conditions of eligibility are met, NHTSA would make an electronic payment to the dealer equal to the amount of the credit after the dealer provides NHTSA with sufficient documentation relating to the transaction. The vehicle that was traded in would then be disposed of (i.e., crushed or shredded) in a manner that ensures it would never be used again, although parts of the vehicle, other than the engine block and drive train,2 may be sold prior to disposal.The Act requires NHTSA to issue final regulations implementing the CARS Act within 30 days after the enactment of the Act, i.e., by July 24. The nearness of this statutory deadline precludes the issuance of a notice of proposed rule-making seeking public comment. The regulations must, among other things:}

   ^{(1) set up a means for registering dealers to participate in the program;}

    

   ^{(2) set forth the procedures for reimbursing dealers participating in the program;}

    

    

   (4) require that dealers disclose to the person trading in an eligible vehicle the best estimate of the scrappage value of such vehicle and authorize dealers to retain $50 of the amount paid for the scrappage value as payment for the administrative costs of the program;

   3

     2.  Under certain conditions, which are explained later in this notice, the drive train too may be sold. 3

   1. The CARS Act is part (Title XIII) of the Supplemental Appropriations Act, Public Law 111-32, 123 Stat. 1859.

   Allocation of any remaining scrappage fees is subject to negotiation between the dealer and purchaser. 3(5) establish, in consultation with the Environmental Protection Agency (EPA), requirements and procedures for the disposal of eligible trade-in vehicles; and

   (6) provide for a means to enforce penalties for violations of the program requirements.

    

   NHTSA must also, not later than July 24, and in consultation with the EPA, make available on an Internet website information about the program, including instructions on

    

   What is the CARS program?

   • how to determine if a vehicle is an eligible trade-in vehicle;
   • how to participate in the program;

   • how to determine if a dealer is participating in the program; as well as a comprehensive list, by make and model, of eligible new vehicles that may purchased as part of the program.

   Because NHTSA will need several weeks to develop and issue a final rule implementing the Act, we are issuing this notice providing general information about the requirements of the CARS Act. NHTSA has already established a website, www.cars.gov,which provides overview information about the program. The agency will periodically update that information. To address additional questions regarding the CARS program, NHTSA has expanded the capacity of the NHTSA hotline (888) 327-4236, TTY: (800) 424-9153 (available Monday-Friday, 8 am to 10 pm). Beginning June 27, the number will be available for CARS calls on Saturdays 10 am – 8 pm. Beginning July 1, we will have a new number, 1-866-CAR-7891, dedicated to calls about the program.

   As appropriate in taking these steps, NHTSA is actively consulting with the EPA.

    

   4.  The Car Allowance Rebate System is a new program from the government that will help you pay for a new, more fuel-efficient vehicle from a participating dealer when you trade in a less fuel efficient one. When does the CARS program begin; how will NHTSA handle trade-ins that are made between July 1 and the issuance of the final rule?  

    If dealer choose to structure a transaction before the final rule is issued, they will bear the risks associated with later demonstrating that the transaction meets all of the specifications of the final rule. The dealers should also give the credit to the consumer at the time of such transaction. The dealer would be reimbursed by NHTSA later if the dealer registers and submits documentation sufficient to demonstrate that the transaction was an eligible one, that the traded-in vehicle was properly disposed of, and that all requirements in the final rule were met.While the CARS Act makes transactions on and after July 1 potentially eligible for credits under the CARS program, interested dealers and consumers may want to wait until all of the detailed issues that must be addressed in the implementing regulations are resolved and the final rule is issued. Issuance will occur around July 23. At that point, NHTSA will have in place detailed provisions about establishing eligibility and a system to ensure the prompt payment of money for credits used under the CARS program.

    When does the CARS program end?

   ^{The CARS Act provides two limitations on the duration of the program. First, the program ends November 1, 2009. Second, NHTSA has been appropriated a fixed sum of money ($1 billion) to fund the program. Thus, under current law, the program will end on November 1, 2009, or when the appropriated funds are exhausted, whichever occurs first. Consumers and dealers are advised that, in the event NHTSA exhausts funds before the end of the program, 5}

    

    

   ^{NHTSA will be unable to reimburse dealers for some otherwise eligible transactions, even if the transactions have already occurred. NHTSA will develop a method of providing consumers and dealers with information regarding the amount of remaining program funds.}

   ^{———————————————————————————————}

    

    

    

    

   

    

   
   

   NEED AUTO FINANCE HELP or CREDIT report repair go to tell them MY CARLADY: Sarah Lee sent you. It’s a free consult and they do the right thing by you, fast, easy, cheap.

   Top learn more about getting your best car deal click here: CAR DEALS

   Sarah Lee is an automotive executive with 20+ years of experience. She writes about Cars, and is a staunch consumer advocate on car related subjects. Her company: MY CARLADY is a car buyer’s service committed to getting you the best deal on your next new or pre-owned vehicle. You can reach her at www.mycarlady.com

   Category: CAR MAKES
   Tags: CARS plan, cash 4 clunkers, junkers for cash, tax credits for cars
   

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2. Auto Dealers Rights Act will throw country into REVERSE

   07/16/2009 by

   Chrysler is out of bankruptcy and GM is following closely behind, anxious to cast-off losing name plates before the government adds another fisher to the auto stimulus bailout fiasco.  Now the House of Representatives is talking possible interference with the brokered automaker deal, in the hopes of placating thousands of constitutes back home. The dealers are up in arms about losing their brands without compensation. The fact is most of these stores would have closed long ago, if not for the credit lines from the factories. The same factories that gave plenty of notice regarding changes to floor plans, production availability, captive financing, sales, service and warranty quotas, long before the scent of bailout money waifed their way.  Gone years ago were franchise buyouts for hobbled makes, or brokered buy-sell arrangements tied to future “point” locations in growth markets.

   The argument that thousands of jobs are going to be lost, is yesterdays news. Most of the employees left the business in the past few years due to shrinking pay and increased hours. The skilled labor force found jobs, the sales people have tailored their pitches to new products and the rest are collecting unemployment for 40+ weeks thanks to the Obama plan.

   The only one’s left are the owners.  Many small business owners look upon this latest attempt to reverse their fortunes with disdain, frustrated by the billions already spent on a shrinking industry. “No one’s paying me for my sandwich shop, ” commented Bill A., when asked about the empty dealerships around the corner from his store. “I lost alot of business when two dealers closed around me, but I just went to work marketing to replace those accounts.  If my franchise corporation comes in and closes me down for lack of performance, who’s fault is that? MINE.  I couldn’t get a hand-out from the feds, no way.  If you do good business, you live to play another day.”

   Still dealership principals are contesting the bailout agreement as trampling on individual state franchise laws. However, the manufacturers control the franchisees, and every operator is held to strict standards of operation. There were no surprises as the economy stalled. The dealers knew what was coming as customers and inventory, credit lines and financing became scarce. The handwriting was on the wall, last year’s models on the lots.

   At this time the House of Representatives Appropriations Committee has passed this latest effort aptly titled  The Automobile Dealer Economic Rights Restoration Act of 2009, (from Bloomberg: )

   “I don’t think Chrysler or GM has been able to demonstrate there is savings associated with fewer dealerships, since the dealers themselves bear the cost of operating their dealerships with little help from the manufacturers,” said Representative Steve LaTourette, an Ohio Republican who sponsored the amendment. “It’s the most un-American thing for the government to help force you out of business.”

   GM spokesman Greg Martin said the amendment would “nullify” bankruptcy court-approved plans to pare the company’s dealer network and “put our long-term viability at risk.” He said GM intends to close about 2400 dealerships in October 2010, leaving the company with between 3500 and 3800 outlets.

   General Motors is expected to exit from bankruptcy proceedings as early as tomorrow.  The entire House will likely take up the bill next week. It will then move on to the Senate.” –from Bloomberg/NPR)  

   IMHO, I hope Congress doesn’t buckle and give in to these demands to reopen the dealerships, as such action will only add a new liability to the reorganized companies, and the country. Imagine the tangled web of lawsuits over every severance package, factory closure and lost pension encompassed in this massive government-induced homicide.  The cost to the taxpayers could be twice the BILLIONS already spent and then some. 

   The President has come out strongly against this effort, his own Car CZARS clearly stated they did NOT want to be involved in running these car companies, and it was up to GM and Chrysler to make themselves viable after BK.  Are the dealers looking for a settlement to go away quietly? Well that remains to be seen, but this economy can’t afford any more automotive extortion.  The best response a closed dealer can have is to look for a competing product; Fiat, Cherry or TATA will be happy to move into these old digs, and prove the dealer can make money selling cars (any brand) in these troubled times. “Work, not welfare,”  has long been the battle cry of business, so now the shoe’s on the other foot. Stop whining, let’s put our heads down, shoulder to shoulder and get to work with the money that’s already been spent. Let the new Chrysler and GM prove they know how to make and market cars American’s want to buy from dealers that know how to treat the customer.

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   NEED AUTO FINANCE HELP or CREDIT report repair go to tell them MY CARLADY: Sarah Lee sent you. It’s a free consult and they do the right thing by you, fast, easy, cheap. eCreditAdvisor

   Top learn more about getting your best car deal click here: CAR DEALS

   Sarah Lee is an automotive executive with 20+ years of experience. She writes about Cars, and is a staunch consumer advocate on car related subjects. Her company: MY CARLADY is a car buyer’s service committed to getting you the best deal on your next new or pre-owned vehicle. You can reach her at www.mycarlady.com

    

   
   

   Category: CAR MAKES
   Tags: auto dealers congress, Dealer Rights Act 2009, house of representatives auto
   

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