HOLD YOUR WATER ON CASH FOR CLUNKERS

Hyundai Motor Co. is apparently advancing money to U.S. dealers so they can immediately take advantage of a “cash for clunkers” program. The payments cover new-vehicle credits for consumers until the federal government completes rules for the program later this month. We recommend that Montana Dealers follow the advice and recommendations of the NADA strongly cautioning dealers from attempting any ‘cash for clunkers’ transactions until the Department of Transportation finalizes the program and implements the rules around July 24. Dealers not in compliance with the program may be held liable for any penalties and may have to fund the government’s incentive out of their own pockets if the sale does not meet the program’s requirements. According to Bloomberg, Dealers could be fined $15,000 for each sale for violating the rules.