NADA Working with DOT to Fix Dealer Reimbursement Issues

SEE ALSO: Cash for Clunkers Consumer Guide-Qualifying Vehicles

Washington DC August 12, 2009; Auto dealers from around the country are reporting that reimbursement issues continue to plague the popular “Cash for Clunkers” program.

“While problems with application submissions have been significantly reduced, getting approval for dealer reimbursement requests is still facing significant hurdles,” says John Lyboldt, NADA vice president for Dealer Operations. “NADA is currently working with transportation department officials to streamline the process and help dealers get paid in a timely fashion.”

The Department of Transportation (DOT) has reported that it’s individually reviewing every “clunkers” application with a staff of 225 people. NADA has learned that there are still a significant number of “clunkers” transactions that have yet to be approved.

Lyboldt added that the burdensome amount of documentation required for submission is causing many applications to be rejected.

“Resubmitted applications are making a bad situation worse by adding to the backlog,” Lyboldt added. “It is critical that before submitting the paperwork to the DOT that every dealer double and triple check that every ‘i’ is dotted and every ‘t’ is crossed,” Lyboldt said.