The Rules Are Out - Are You Ready for CARS?
Here it is in all of it's glory 136 pages of it. Feel free to comment as you uncover the little gems in this program. It's a large document so it may take a few minutes.
- Attachments:
-
-
CARS_Rule.pdf, 6.4 MB
-
Replies to This Discussion
-
Permalink Reply by Harlene Doane on -
First find in the ruling
Under the Act, the agency is required to provide a list of entities to which dealers
may transfer eligible trade-in vehicles for disposal. (Section 1302(d)(6)). The Act also
requires the Secretary to coordinate with the Attorney General to ensure that the National
Motor Vehicle Title Information System (NMVTIS) is timely updated to reflect the
crushing or shredding of trade-in vehicles and appropriate reclassification of their titles.
Has anyone seen this list of entities? Because the Web site link that is supposed to have the list is not active yet www.cars.gov/disposal
With this in mind, NHTSA has identified disposal facilities that are ELVS
participants for listing as approved disposal facilities under this program, and these
disposal facilities are listed on the agency’s website at www.cars.gov/disposal. However,
some entities on this list may dispose of mercury switches as part of their business (for
example, auto repair businesses) but do not actually engage in dismantling or recycling of
vehicles. Therefore, the fact that a facility is on the list does not automatically ensure that
it is equipped to dispose of vehicles properly. To be eligible for participation in the
CARS Program, a facility on the ELVS list must be able to crush or shred motor vehicles,
either with its own equipment or by use of a mobile crusher. NHTSA was not able to
obtain accurate lists of all entities that have this capacity within the time allowed, but is
informed that many of the entities on the ELVS list are capable of at least obtaining the
services of a mobile crusher. Dealers will have to inquire of specific entities concerning
their capacity to crush or shred the vehicle. Any facility that does participate will have to
certify that it has that capacity to crush or shred and will dispose of the vehicle through
crushing or shredding.
-
Permalink Reply by Shane Born on -
I'm glad they are allowing you to sell the drive train and engine block prior to crushing. Apparently you can't part out the drive train?
-
Permalink Reply by Becky Hillig on -
Read page 127. It explains how to disable the engine....In other words you run the engine with a sodium silacate solution instead of oil until the engine stops running. I don't think there will be many salvagable parts after that.
-
Permalink Reply by Harlene Doane on
-
dealers must disable the trade-in vehicle’s engine prior to transferring the vehicle to a disposal facility,
the agency believes that the statutory interest in ensuring that the vehicle is not returned
to use on the road in this or any other country is largely met before it leaves the dealer’s
possession.
Beginning to look like all the liability is with the dealer not the disposal facility... let's keep reading
-
Permalink Reply by Harlene Doane on
-
Definition of “Drivable Condition”Do you have your documents in order?
The agency intends that “drivable condition” be demonstrated by several means.
First, it must be confirmed by the trade-in vehicle being operated, under its own power,
by the dealer on public roads on the date the vehicle is traded in. The dealer must then
certify to the operation of the vehicle when it submits its request for reimbursement.
Separately, the person trading in the vehicle must certify that it is in drivable condition.
This latter certification also must be submitted by the dealer with its application
requesting reimbursement. This approach is adopted in section 599.300(b)(1) of the final
rule, and the required dealer and purchaser certifications are contained in the Summary of
Sale/Lease and Certifications (Appendix A, certifications section - see page 122 of original pdf).
Note that the Summary of Sale/Lease and Certifications form has two components—a section for the dealer to input information summarizing the terms of the sale or lease transaction and a
section containing certifications that must be made by both the dealer and the purchaser.
The section summarizing the transaction is discussed later in this notice
-
Permalink Reply by Harlene Doane on
-
Continuous Insurance Coverage for one Year - Hurdles
... not all States require vehicle owners to purchase automobile insurance coverage. Several States provide vehicle owners with the option, for example, to post a surety bond, leave a cash deposit or self-insure in lieu
of purchasing automobile insurance. Two States have little or no insurance requirements.
Page 29 goes on to state
This proof may take one of three forms.
1. The proof may consist of one or more insurance cards containing the make, model, model year, and vehicle identification number (VIN) of the insured vehicle, but
only if, taken together, the cards display on their face a continuous one-year period of
insurance coverage.
2. The proof may also consist of insurance policy documents (e.g.,
declarations pages) showing the same information.
3. Finally, the proof may consist of a signed letter, on insurance company letterhead, identifying the same vehicle identification information (i.e., make, model, model year, and VIN) of the insured vehicle and the period of continuous coverage, which must be for at least one year prior to the date of the trade-in. In addition, for each of the three options, the consumer must certify that the
trade-in vehicle has been continuously insured for the requisite period. This proof of
insurance, along with the consumer certification, must be submitted by the dealer in its
application to the agency requesting reimbursement.
-
Permalink Reply by baby hewy on -
so quick question, my state does not require insurance on vechicles, so most people do not keep it. from what I am reading they have to have insurance.
-
Permalink Reply by Barry Rodenberg on -
I've been up since 4am trying to get into the site to register. After hundreds of failed attempts, I got in....three times and it kicked me out mid registration!! Welcome to the Government program!!!! Arghhhh!!!!
-
Permalink Reply by Harlene Doane on
-
proof of registration
1. a current State registration document or
series of registration documents in the name of the purchaser evidencing registration for a
period of not less than one year immediately prior to the trade-in
2. a current State registration document showing registration in the name of the purchaser and a document
of title that confers title on the purchaser not less than one year immediately prior to the
trade-in
3. or a current State registration document showing registration in the name of the
purchaser and a document from a commercially available vehicle history provider
evidencing registration for a period of not less than one year immediately prior to the
trade-in.
In addition, for each of the three options, the consumer must certify that the trade-in vehicle was continuously registered for the requisite period. This proof of registration, along with the consumer certification, must be submitted by the dealer in its application to the agency requesting reimbursement.
-
Permalink Reply by Harlene Doane on
-
The CARS Act allows the new vehicle to be either purchased or leased.
In the case of a lease, the Act requires the lease to be for a period of not less than 5 years.
A lease that incorporates a balloon payment at any time prior to five years does
not meet the statutory requirement.
How much leasing is really going on these days?
-
Permalink Reply by Mark Feazel on -
leasing is still being done, but a 5-Year Lease completely cancels the value of leasing to both the customer and the dealer!
-
Permalink Reply by Harlene Doane on
-
How to handle titles of scrapped vehicles
Prior to submitting a copy of the title along with its request for reimbursement, the dealer clearly mark the title on both sides with the words,“Junk Automobile, CARS.gov.” Section 599.300(d)(3) implements this requirement.
The marking must be placed so as not to obscure the vehicle owner’s name, VIN, or other
writing. Having this special label or brand on the title will inform all who subsequently
handle it that the vehicle is a trade-in under this program and should not be registered or
titled for further use as an automobile.
Keep those trade titles very separate from the new vehicle titles!
© 2010 Created by Greg Goebel.
