CARS Enters Enforcement Phase
WASHINGTON – Recent actions by a government agency, which were reported by USA Today, could mean the $3 billion Cash for Clunker’s program is entering the enforcement phase.
On Sunday, the newspaper reported that the National Highway Traffic Safety Administration (NHTSA) is investigating at least 20 dealerships it claims violated the rules of last year’s Cash for Clunkers program. Quoting government auditors, the report said that up to $94 million in rebates may be ineligible because they lack the proper documentation.
A NHTSA spokesperson told the newspaper that there’s no evidence of widespread fraud and said the violations are a small fraction of the 18,915 dealers who participated in the rebate program, which attracted 678,418 new-car buyers.
In a report issued last April, Joseph W. Comé, assistant inspector general with the U.S. Department of Transportation, said 3.3 percent of the claims it reviewed, or about $94 million in rebates, were missing paperwork.
“We project that almost 22,000 transactions lacked supporting documentation, such as proof of insurance, in the CARS database at the time of our audit,” he wrote.
He added that some of those transactions his office reviewed could ultimately prove to meet the program’s requirements with additional paperwork, which NHTSA confirmed through its own review.
More Industry

World EV Adoption Set to Grow
A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.
Read More →
Black Book: Weekly Market Update
Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.
Read More →
Pricing Transparency Drives Purchase Consideration
An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.
Read More →
Black Book: Weekly Market Update
Used-vehicle market depreciation was the prevailing story in the wholesale market last week.
Read More →
Smaller Is Looking Better
A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.
Read More →
U.S. EV Market Slowly Stabilizes
U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.
Read More →
Global EV Market Entering New Phase
Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.
Read More →
Black Book Weekly Market Update
The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.
Read More →
Auto Affordability in Context
Cox Automotive points out the complex circumstances that have led to eye-popping vehicle prices.
Read More →
Black Book: Weekly Market Update
Automotive auction inventory increased last week, giving choosy bidders even more leeway.
Read More →