Auto dealers warned about Cash for Clunkers

The Cash for Clunkers – or the Car Allowance Rebate System – no longer guarantees automobile dealers that they’ll be reimbursed for cars sold.

The Colorado Automobile Dealers Association has warned its members to be cautious of selling any more cars under the program, unless CARS receives additional funding.

The program, which offers rebates of $3,500 to $4,500 for buyers who trade in older gas guzzlers to buy new fuel-efficient cars, is likely to be suspended, unless the Senate takes action.

CADA president Tim Jackson warned dealers in a statement not to assume that CARS funding is reliable unless additional funding is appropriated to the program.

During an interview, Jackson said, “We told dealers it was fine to sell through Saturday (August 1), but now they need to proceed with caution.

“Dealers are being sent mixed signals about the reliability of the funding of the program,” Jackson said.

“As of this morning, CADA recommends that dealers not sell cars under the program unless or until one of three things happen:

“The Senate acts to fund an additional appropriation to continue the program, or the Obama administration makes a new assurance that deals will be honored, or the Department of Transportation confirms that the original CARS funding is not yet exhausted.”

Visit for guidelines about successful registration.