Cash for Clunkers rules need revisions

The federal government's Car Allowance Rebate System, more popularly know as cash for clunkers, has been a victim of its own success. As an auto sales professional, I've seen its promise and its problems.

It is unreasonable for the federal government to demand that dealers release cars before the vouchers are paid. The National Highway and Traffic Safety Administration, the agency administering the program, cannot handle the volume of paperwork it demands from dealers.

Very few vouchers have been paid, and horror stories abound of vouchers being denied for trivial reasons.

At $3,500 and $4,500, the vouchers give consumers motivation to act now. Automotive sales is a “now” business, and dealers appreciate the traffic CARS has generated. Unfortunately, the NHTSA seems to be a “sometime next month” agency which has put dealers in a bind.

If we want to encourage consumers to take gas hogs off the road, the program needs to be changed. Reduce the voucher amount to a number closer to fair market value, e.g., $1,500 to $2,500.

Let NHTSA deal directly with consumers: consumers would send registration, insurance, and title information directly to NHTSA. Upon approval, NHTSA would issue a voucher that consumers could take directly to dealers, and which dealers could cash immediately.

Since dealers handle the sale of titled property every day, but NHTSA doesn't, the agency needs to listen to us and trust our expertise on handling paperwork.

The program is a great success, but must be changed to relieve consumer and dealer frustration.

Jeff Klinzman

Coralville