U.S. allows clunker rebates on factory orders after dealer complaints


U.S. allows clunker rebates on factory orders after dealer complaints
Chrissie Thompson
The U.S. government has agreed to allow dealers to submit cash-for-clunkers transactions for vehicles ordered from factories instead of just those purchased at a dealership.
That decision came today from the National Highway Traffic Safety Administration in response to dealers’ complaints about dwindling inventory on lots. The news came amid reports that the agency has rejected about 80 percent of cash-for-clunkers transactions.
Dealers who want to file deals for an ordered vehicle must first obtain the new car’s vehicle identification number from a manufacturer, NHTSA said in a statement. Reimbursement requests still must have all required documents for the trade-in vehicle.
The announcement came a day after a NHTSA conference call with dealer group leaders. During the call, NHTSA officials said the government is rejecting four out of every five deals made under the incentive, according to three dealer group heads who listened.


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