WASHINGTON – The federal “Cash for Clunkers” or “CARS” program is now entering its wind-down phase, according to the National Automobile Dealers Association (NADA). Yesterday, U.S. Transportation Secretary Raymond LaHood announced that, within the next 48 hours, guidance will be issued regarding the process by which the program will be brought to a close.

NADA yesterday held a high-level meeting with DOT and NHTSA officials to reiterate dealer concerns about the "Cash for Clunkers" program, and to stress the urgency of fixing these problems. As the first order of business, NADA stressed the importance of addressing – as soon as possible – how the program will end, including the possible suspension of the program. In addition, NADA emphasized that NHTSA must eliminate all dealer reimbursement delays. The failure to make such payments is creating financial hardship and uncertainty for dealers and consumers alike, NADA says.

NADA says it will continue to press NHTSA for clarity on, and resolution of, all open “cash for clunkers” questions, and will provide additional dealer updates when circumstances warrant.

Meanwhile, some leading U.S. automotive retailers are participating in a privately funded stimulus program to help consumers who were left behind by the government's plan. Due to the restrictions of the government's program, more than 90 percent of consumers were not eligible. As a result, some of the largest retailers in the country are promoting a new dealer-funded stimulus program that gives consumers up to $4,500 of additional trade-in value towards the purchase of a new or used vehicle.

The new stimulus plan is more inclusive because all trade-ins older than 2007 are eligible regardless of their current mpg and consumers can purchase or lease any new or used vehicle with an improved fuel economy of 2mpg. This is a contrast to the government program, which excluded trade-ins with more than 18mpg, used cars and short term leasing and some vehicles needed to get at least 4mpg improvement to qualify.

See Program details at www.AutoStimulusPlan.com.