CARS (Consumer Assistance to Recycle and Save)
The CARS program, also known as Cash for Clunkers, is a federal program that helps consumers purchase a new, more fuel-efficient vehicle by trading in an older, less fuel-efficient vehicle. Under the federal guidelines, the CARS trade-in vehicles must be reported to the National Motor Vehicle Title Information System (NMVTIS), have all hazardous material removed from them, and be destroyed within 6 months, so that they will never return to the road. Auto Data Direct (ADD) can help you with your CARS reporting requirements!
The NMVTIS reporting requirement for the CARS program falls under the larger requirement for recyclers, dismantlers, salvage pools and insurance companies to report ALL the salvage/junk vehicles that they handle. Any business that deals in salvage vehicles must report specific vehicle information to the national database on at least a monthly basis. ADD is an approved NMVTIS data consolidator, and we can help you report not only your CARS vehicles, but all vehicles affected by the NMVTIS rules. Detailed NMVTIS information is available at www.nmvtis.gov .
With an activation fee of $100.00 and pre-paid account balance of $50.00 ($150.00 total) you will have access to all of ADD's online tools, including NMVTIS inquiry, reporting, tracking and receipt generation. Our web-based NMVTIS upload tools send salvage vehicle information securely and directly to the NMVTIS database.
Account activation is available at www.add123.com . Click the button that says Sign Up Corporate Accounts and let ADD help you!
The final CARS Program (commonly known as Cash for Clunkers) requirements and procedures were issued on July 24, 2009 by the National Highway Traffic Safety Administration (NHTSA).
The full requirements are available on the government website at www.cars.gov .
Dealers, disposal facilities, and salvage auctions should carefully read the regulations to understand their responsibilities. Auto Data Direct is providing this information to assist its customers in understanding the basic guidelines of the CARS program. There are other required certifications listed on the CARS Certification Forms, and dealer, salvage auctions and disposal facilities should read all of them carefully to understand what is required of them.
CARS (Cash for Clunkers) FAQs
How do I qualify to accept vehicles for disposal under the CARS program?
For Disposal Facilities, a company must be participating in the ELVS mercury switch collection program (for all states except Maine), must be able to report the vehicles to the NMVTIS database, and must certify that your company meets all applicable state and federal laws and has a currently active state license to operate as a disposal facility in your state.
For Salvage Auctions, your company must meet all applicable state and federal laws, must have a currently active state license to operate as a salvage auction in your state, and must be able to report the vehicles to the NMVTIS database.
How do I sign up for ELVS?
Businesses can fill out an email application online at www.elvsolutions.org . You must be able to participate in the mercury switch removal to register, and if you register but do not participate your business will be removed from the list.
How do I sign up to report to NMVTIS?
NMVTIS reports must be made through a data consolidator; Auto Data Direct (ADD) is an approved data consolidator currently submitting data to the NMVTIS database on a daily basis. Account sign-up for Auto Data Direct (ADD) is done online at www.add123.com . Click the button that says "Sign Up - Corporate Accounts." You will need a valid credit card and some specific company information, and ADD can have your account up and running within hours.
How do I know if my disposal facility can accept Cash for Clunkers cars?
Disposal Facilities that can accept Cash for Clunkers vehicles will appear on the CARS.gov website. Appearing on the list is not enough. The disposal facility must also make specific certifications for each CARS trade-in vehicle it receives using the Disposal Facility Certification Forms from the CARS.gov website.
How is CARS different from the regular NMVTIS program?
The CARS Program is a separate program from NMVTIS with its own guidelines and regulations. NMVTIS reporting is only one of the requirements for participation in CARS.
While the CARS program requires that vehicles be reported to the NMVTIS database, the reporting timeline is more stringent than under the regular NMVTIS reporting requirements. The CARS reporting timeline takes precedence.
Like NMVTIS, under the Cash for Clunkers program, each entity may make up to 2 reports to the NMVTIS database as they process vehicles.
I'm an Auto Auction, how will this benefit me?
If you plan on handling any Cash for Clunkers vehicles, an account with ADD could be beneficial. With an ADD account you will be able to report your CARS vehicles free of charge, search the NMVTIS database at the discounted ADD customer price, track your CARS reports in your archive of reported vehicles and be able to verify the acceptance of your report (and your compliance) within 24 hours with our printable confirmation receipts.
Who is responsible for disabling the engine on a clunker?
Dealers must disable the trade-in vehicle's engine prior to transferring the vehicle to a disposal facility and attach a label to the engine that legibly states the following:
This engine is from a vehicle that is part of the Car Allowance Rebate System (CARS). It has significant internal damage caused by operating the engine with a sodium silicate solution (liquid glass) instead of oil.
Will NHTSA update the ELVS (Disposal facility) list on cars.gov?
Yes. ELVS will send an updated list to NHTSA, who will assign each company a Unique ID number and post new lists periodically.
Is there an approved Dealers List or a Dealer Certification that dealers will provide Salvage Auctions and Disposal Facilities with each trade in vehicle?
The list of registered dealers by state is posted on cars.gov. Click on the "Dealer Locator" tab. There is no dealer Certification Form for dealers to provide for disposal facilities.
Who is responsible for the physical transport of the trade in vehicle from the dealer to the disposal facility?
The vehicle transportation arrangement and cost should be determined by the dealer and the disposal facility, but the cost cannot be passed back to the consumer from the dealer.
How long do I have to keep records of the CARS trade-in vehicles processed at my facility?
Manufacturers, dealers, salvage auctions, and disposal facilities are required to keep records of all transactions under the CARS program for five years from the date on which they were acquired.
Who is responsible for turning the trade in vehicle title in to the state, or is it necessary to apply for a salvage title for the vehicle before it is destroyed?
Disposal Facilities need to follow their existing state regulations for salvage titles. The rule requires that, before turning in a copy of the title along with the request for reimbursement, the dealer must clearly mark the title on both sides with the words, "Junk Automobile, CARS.gov." The marking must be placed so as not to obscure the vehicle owner's name, VIN, or other writing.
For Disposal Facilities (Shredders, Crushers, Salvage Yards):
A list of facilities eligible to receive Cash for Clunkers vehicles is available on the cars.gov website. A dealer or salvage auction may not transfer a CARS trade-in vehicle to a disposal facility unless the facility is on the list and the dealer or salvage auction receives a signed Disposal Facility Certification Form from disposal facility. These forms are available on the cars.gov website (Click "Dealer Locator," then click the gray "Disposal and Salvage" button on the right- lists and forms are all at the bottom of the page).
Disposal Facility Guidelines:
The Cash for Clunkers vehicle must be reported to the National Motor Vehicle Title Information System (NMVTIS) within 7 days after the date of receipt and with 7 days after crushing or shredding.
The disposal facility may sell any parts of the vehicle other than the engine block or drive train (unless the drive train, the transmission, drive shaft, or rear end are sold as separate parts) for up to 6 months.
The Cash for Clunkers vehicle must be crushed or shredded on site within 6 months (180 days) of receipt of the vehicle.
The Cash for Clunkers vehicle must not be transferred to another disposal facility prior to its crushing or shredding.
All toxic or hazardous components must be removed and properly disposed of prior to crushing or shredding.
Disposal Facility Reporting through ADD:
Report the "clunker" to NMVTIS within 7 days of receiving the vehicle.
If you will destroy the vehicle within 7 days of receipt, make one NMVTIS report with a disposition of CRUSH after you have crushed the vehicle, and enter the name of the crusher or shredder you transferred the vehicle to, or if you are a crusher or shredder, enter your company name to designate that you had possession of the vehicle at its "end-of-life."
If you will be using the vehicle for parts (for up to 6 months) report the vehicle with a disposition SCRAP, and your company name will populate the "transferred to" the field.
If you will hold the vehicle for more that 7 days (you will not be using the vehicle for parts, but will not crush the vehicle within 7 days of receipt) report the vehicle to NMVTIS with a disposition of UNKNOWN. When you do crush the vehicle (up to 6 months later), report the vehicle with a disposition of CRUSH after you have crushed the vehicle, and enter the name of the crusher or shredder you transferred the vehicle to. If you are a crusher or shredder, enter your company name to designate that you had possession of the vehicle at its "end-of-life."
After you have made your NMVTIS report, click "View Record Manifest" to see the status of your report. When the status changes from "Pending" to "Accepted," print out your receipt to provide to dealers as proof of reporting, if required.
For Salvage Auctions:
A dealer is allowed to transfer a CARS trade-in vehicle to a salvage auction instead of transferring the vehicle directly to a disposal facility. There is no list of eligible salvage auctions. However, a dealer may not transfer a CARS trade-in vehicle to a salvage auction unless the dealer receives a signed Salvage Auction Certification Form from the salvage auction. These forms are available on the cars.gov website (Click "Dealer Locator," then click the gray "Disposal and Salvage" button on the right- lists and forms are all at the bottom of the page).
Salvage Auction Guidelines:
The Cash for Clunkers vehicle must be reported to the National Motor Vehicle Title Information System (NMVTIS) within 3 days after date of receipt and within 3 days of sale to an approved disposal facility.
The auction must limit any auction sale of the trade-in vehicle solely to disposal facilities that appear on the CARS program Disposal Facility List.
The auction cannot remove any parts from the trade-in vehicle.
The auction must obtain a Disposal Facility Certifications Form from the disposal facility to which it transfers the "clunkers."
Salvage Auction Reporting through ADD:
Report the "clunker" to NMVTIS within 3 day of receiving the vehicle.
If you will sell the vehicle within 3 days of receipt, make one NMVTIS report with a disposition of SOLD and the name of the disposal facility to which you transferred the vehicle.
If you will not sell the vehicle within 3 days of receipt, first report the vehicle to NMVTIS with a disposition of UNKNOWN within 3 days, and then report the vehicle with a disposition of SOLD and the name of the facility that you transferred the vehicle to within 3 day of selling the vehicle.
After you have made your NMVTIS report, click "View Record Manifest" to see the status of your report. When the status changes from "Pending" to "Accepted," print out your receipt to provide to dealers as proof of reporting, if required.
