WASHINGTON (August 21, 2009) - Auto dealers across the country-this afternoon-began reporting slow downs or crashes with the CARS computer system.  NHTSA was aware of this problem and is reporting that it is fixed.  
 
Many dealers are working around the clock to submit their “clunkers” applications to meet the Administration's deadline of Monday, August 24 at 8 p.m. EDT.  Despite these efforts, computer issues may prevent some “clunker” applications from being submitted in time, through no fault of the dealers.
 
NADA has recommended to NHTSA that the submission deadline be extended so every valid deal can be accepted.  NADA would support a policy of no more “clunkers” deals being consummated by Monday at 8 p.m. EDT.  Because of computer problems and other issues, however, the deadline for submissions should be extended until August 31. This later deadline for submissions would help avoid computer slowdowns due to overwhelming demand, and ensure that the President's statement yesterday that every dealer “will get their money” is achieved in a sensible, orderly manner.
 
Computer issues aside, NADA strongly advises dealers to give priority to submitting un-submitted deals to NHTSA.  Although there is still time to initiate new “clunkers” deals, each dealer must recognize the risk of potentially being shut out if the Administration refuses to extend the submission deadline.