Although the general parameters of the clunker program are defined by the legislation, the legislative branch has placed the Department of Transportation in charge of writing the fine print—a daunting task, say officials involved.
“It’s complex and not like anything we’ve ever run before,” said Rae Tyson, a spokesman for the National Highway Traffic Safety Administration. “We’re starting from scratch.”
Tyson says key parts are already in place for dealers to offer buyers up to $4500 towards a new, more fuel-efficient car when trading in an older vehicle with worse fuel economy. Think you can pick up a jalopy for a quick buck towards a new car? One of the few details established thus far mandates that the trade-in vehicle must be less than 25 years old, and owned by the individual purchasing a new vehicle for at least one year.
Still, details surrounding how to ensure the so-called “clunkers” are scrapped and not resold are still up in the air. Some suggest dealers remove key driveline components, such as the engine and transmission.
“Dealers already have mechanisms for disposing of vehicles that they don’t want to resell,” said Tyson. “We’re going to require some foolproof means of proving that the vehicle will never be on the road again.”
The National Automotive Dealers Association is advising dealerships to refrain from participating in the program until the final details are laid out.
Source: Automotive News