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CARS Disposal and NMVTIS Reporting Requirements Reminders

In light of heightened compliance efforts for the CARS program, NHTSA is issuing the following reminders regarding disposal facilities/automotive recyclers reporting and disposal obligations for the CARS program.

Disposal facilities are required to report to the National Motor Vehicle Titling Information System (NMVTIS) within seven (7) days of receipt of each CARS trade-in vehicle acquired from a dealer or salvage auction, using the status "Scrap".

Disposal facilities are also required to report to NMVTIS a second time within seven (7) days of the crushing or shredding of a CARS trade-in vehicle using the status of "crush".

All automotive recyclers, junk yards and salvage yards are required to provide NMVTIS with the following information:

  • The name, address, and contact information for the reporting entity.
  • VIN.
  • Date the automobile was obtained.
  • Name of the individual or entity from whom the automobile was obtained (for law enforcement and appropriate governmental agencies ONLY).
  • A statement of whether the automobile was crushed or disposed of, or offered for sale or other purposes.

    • Disposal facilities must crush or shred the CARS vehicle within 270 days after receipt of the vehicle.

    CARS vehicles must be crushed/shredded onsite, using your own machinery or a mobile crusher. It is a violation of the CARS regulation to transport CARS vehicles to other sites for shredding.

    CARS Trade-in vehicles may not be exported.

    Dealers and salvage auctions are required to send a competed disposal form for every CARS trade-in vehicle they transfer to disposal@cars.gov.

    Failure to comply with the CARS regulation can result in a civil penalty of up to $15,000 for each violation.

    Disposal Facilities & Salvage Auctions

    If you think your company should be on the disposal facility list, or if you have other concerns with the list, please send an email with your issue to salvage@cars.gov and someone will get back to you as soon as possible.

    Dealers, disposal facilities, and salvage auctions should read carefully the regulations to understand their responsibilities.

    Disposal facilities

    Under the CARS Act, the agency is required to provide a list of entities to which dealers may transfer eligible trade-in vehicles for disposal. The list of disposal facilities in all 50 States appears on NHTSA’s “Disposal Facilities List” (see link below). A disposal factility on the list must certify that it will dispose of the trade-in vehicle in compliance with the regulations.

    In all States except Maine, NHTSA’s list is based on participation in the ELVS program. (Maine has a law that provides a substitute for participation in the ELVS program, and NHTSA has obtained a comprehensive list of disposal facilities from that State.) Consequently, entities that wish to participate in the disposal of CARS trade-in vehicles should join the ELVS program (except in Maine), if they are not currently participating. As entities join the ELVS program, NHTSA will periodically update its list to include these new participants. Dealers are cautioned to use NHTSA’s Disposal Facilities List, not the ELVS list, because some ELVS participants may be removed from NHTSA’s list if they are found to be in violation of the CARS program requirements. Those considering joining the ELVS program, in the hopes of participating in the disposal of CARS trade-in vehicles, should read carefully the note below.

    Disposal facilities in the U. S. Territories need not be ELVS participants, and they do not appear on the NHTSA Disposal Facilities List. However, disposal facilities in the territories must make the same certifications as those made by disposal facilities in the 50 States.

    NOTE: While a disposal facility in one of the 50 States must be on NHTSA’s list to be eligible, that by itself is not enough. The listed disposal facility must also make specific certifications for each CARS trade-in vehicle it receives (see the link to the Disposal Facility Certifications below). Disposal facilities in the U. S. Territories must also make these certifications. A dealer may not transfer a CARS trade-in vehicle to a disposal facility unless the dealer receives the signed certifications from the disposal facility.

    These certifications, which are legally binding on the disposal facility, include a certification that the CARS trade-in vehicle will be crushed or shredded onsite within 180 days of receipt of the vehicle, that all toxic or hazardous components will be removed and properly disposed of prior to crushing or shredding, and that the vehicle will not be transferred to any other disposal facility before it is crushed or shredded. There are other required certifications, and dealers and disposal facilities should read all of them carefully to understand what is required of them. Some disposal facilities on NHTSA’s list or in the U. S. Territories may not be willing or able to make the required certifications because they are not equipped to crush or shred the vehicle onsite or for other reason-in that case, they are not eligible to receive a CARS trade-in vehicle.

    Salvage Auctions

    Instead of transferring a CARS trade-in vehicle directly to a disposal facility, a dealer is allowed to transfer the vehicle to a salvage auction. A salvage auction receiving a CARS trade-in vehicle must certify that it will dispose of the trade-in vehicle in accordance with the regulations.

    There is no list of eligible salvage auctions. However, the salvage auction must make specific certifications for each CARS trade-in vehicle it receives (see the link to the Salvage Auctions Certifications below). A dealer may not transfer a CARS trade-in vehicle to a salvage auction unless the dealer receives the signed certifications from the salvage auction.

    The certifications, which are legally binding on the salvage auction, include a certification that the auction sale will be limited solely to disposal facilities that appear on the NHTSA Disposal Facilities List. There are other required certifications, and dealers and salvage auctions should read all of them carefully to understand what is required of them. The regulations also require the salvage auction to obtain certifications from the disposal facility to which it transfers the CARS trade-in vehicle, just as the dealer would be required to do if it transferred the vehicle directly to a disposal facility.

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Disposal and Salvage

This notice is provided pursuant to the Privacy Act of 1974, 5 USC § 552a: This information is solicited under the authority of Public Law 111-32, 123 Stat. 1859. Furnishing the information is voluntary, but failure to provide all or part of the information may result in disapproval of your request for a credit on this purchase or lease transaction under the Cars Program. The principal purposes for collecting the information are to determine if purchase or lease transactions are eligible for credits under the CARS Program, to ensure proper disposal of trade-in vehicles, to prevent, identify and penalize fraud in connection with the Program, and to update an existing government database of Vehicle Identification Numbers. If you complete the optional survey, the survey information will be used to report to Congress on the Program. Other routine uses are published in the Federal Register at 65 F.R. 19476 (April 11, 2000), available at: www.dot.gov/privacy.

Ensuring transaction security is a crucial requirement of NHTSA-CARS clients. Using industry-standard security techniques ensures that your personal and financial information remains confidential. NHTSA-CARS uses security technologies that include your personal customer number and password, government standard encryption, and hardened perimeter protections such as firewalls and intrusion detection systems. The combination of your customer number and password enables you to be uniquely identified to NHTSA-CARS transaction processing. It is your responsibility to keep your password secure. Compromising your password by sharing it with others can have negative consequences for the integrity of your transactions.

You will also need to use a secure browser. Certain browsers have the ability to communicate securely by encrypting the information as it passes across the Internet. This method of communication is called Secure Socket Layer (SSL). NHTSA requires the use of a properly configured browser as a condition for connecting to NHTSA-CARS using SSL. Therefore, SSL must be enabled on your browser to establish a connection with NHTSA-CARS. Additionally, be aware that your transaction passes through multiple security mechanisms, any one of which can halt the transaction if suspicious activity coming from your computer is detected. To avoid this from happening, please keep your anti-virus software on your computer current.

Your Internet Browser – How to Ensure That Your Session is Secure

Once you've downloaded and installed your browser, here's how you can check for yourself that your Online Banking session is secure. As you browse through the resources available on the Internet, you'll notice that your browser's status bar changes with the Web page you have loaded. You should see a padlock graphic, either locked or unlocked, like this:

  • Secure UnSecure
  • Microsoft Internet Explorer N/A
  • Mozilla Firefox

This notice is provided pursuant to the Privacy Act of 1974, 5 USC § 552a: This information is solicited under the authority of Public Law 111-32, 123 Stat. 1859. Furnishing the information is voluntary, but failure to provide all or part of the information may result in disapproval of your request for a credit on this purchase or lease transaction under the Cars Program. The principal purposes for collecting the information are to determine if purchase or lease transactions are eligible for credits under the CARS Program, to ensure proper disposal of trade-in vehicles, to prevent, identify and penalize fraud in connection with the Program, and to update an existing government database of Vehicle Identification Numbers. If you complete the optional survey, the survey information will be used to report to Congress on the Program. Other routine uses are published in the Federal Register at 65 F.R. 19476 (April 11, 2000), available at: www.dot.gov/privacy.

Ensuring transaction security is a crucial requirement of NHTSA-CARS clients. Using industry-standard security techniques ensures that your personal and financial information remains confidential. NHTSA-CARS uses security technologies that include your personal customer number and password, government standard encryption, and hardened perimeter protections such as firewalls and intrusion detection systems. The combination of your customer number and password enables you to be uniquely identified to NHTSA-CARS transaction processing. It is your responsibility to keep your password secure. Compromising your password by sharing it with others can have negative consequences for the integrity of your transactions.

You will also need to use a secure browser. Certain browsers have the ability to communicate securely by encrypting the information as it passes across the Internet. This method of communication is called Secure Socket Layer (SSL). NHTSA requires the use of a properly configured browser as a condition for connecting to NHTSA-CARS using SSL. Therefore, SSL must be enabled on your browser to establish a connection with NHTSA-CARS. Additionally, be aware that your transaction passes through multiple security mechanisms, any one of which can halt the transaction if suspicious activity coming from your computer is detected. To avoid this from happening, please keep your anti-virus software on your computer current.

Your Internet Browser – How to Ensure That Your Session is Secure

Once you've downloaded and installed your browser, here's how you can check for yourself that your Online Banking session is secure. As you browse through the resources available on the Internet, you'll notice that your browser's status bar changes with the Web page you have loaded. You should see a padlock graphic, either locked or unlocked, like this:

  • Secure UnSecure
  • Microsoft Internet Explorer N/A
  • Mozilla Firefox

Code Explanation Reject Percentage Quick Guide to Transaction Submission Page
201 Junk Automobile, Cars.gov not written on Page 1 and 2 of Title 13.58% 16-17
999 3 or More Errors Found***Recheck Entire Transaction 10.42%
302 Proof of Insurance not current and in force for previous 12 months 9.06% 18
701 Missing signature(s) on Summary of Sale 8.62% 21
703 Trade-In VIN Mismatch on Summary of Sale 5.37% 21 & 29
116 Missing Summary of Sale/Lease (Deal Sheet and Buyer's Certification) 4.92% 21
301 VIN Mismatch on Trade-In Proof of Insurance 4.67% 18
704 New VIN Mismatch on Summary of Sale 4.07% 21 & 29
403 Trade-In not registered to same owner for previous 12 months 3.58% 19
108 Missing Trade-In Registration 3.06% 19
101 All Attachments missing 3.01% 14 & 27-28
114

Missing Fuel Economy.gov Side by Side Comparison

Go to http://www.fueleconomy.gov/feg/CarsSearchIntro.shtml to print the correct side-by-side comparison

 2.80% 24
203 VIN Mismatch on Trade-In Title 2.39% 16-17
601 Side by Side Trade in Category Does not Match 2.23% 29-30

Dealers should note that there are three major categories of errors in these leading reasons for rejections: (1) missing documents, (2) missing Junk Auto brands and signatures; and (3) mismatches between VINs on the various documents. The leading cause is the absence of the required CARS brand ("Junk Automobile, CARS.gov") on the trade-in title. Dealers who follow the guidance available on the website should be able to avoid such errors easily. Dealers who receive rejections should review the invoice and all attachments before resubmitting to avoid even further delay in receiving reimbursement. NHTSA is increasing its capacity to deal with dealers' questions about how to submit a proper invoice, but the most important thing dealers can do is use the guidance on the website and review their submissions carefully before submitting them."

  1. Junk Automobile, CARS.gov is not written on the Trade-in Title

    Junk Automobile, CARS.gov needs to be written CLEARLY across FRONT and BACK of the trade-in title.

  2. Incomplete Summary of Sale

    Make sure every field is filled out, including MSRP and incentive amounts. NO fields can be left blank. Dealer and all purchasers MUST have signed the Summary of Sale.

  3. Proof of Insurance

    It is important to show evidence of 12 months of continuous insurance coverage up through the date of the sale.

    • We have received numerous transactions where the VINs do not match, letters are not signed, or documents that only show a fraction of a year of coverage. Please make the following data points clear by circling them in your documentation: VIN, start and end dates of coverage, and company name.
    • You may submit one or more insurance cards, declaration statements, database printouts, or a signed letter from an agent or corporate office on company letterhead.
    • Insurance is NOT required in NH or WI, but dealers in these states should minimize the risk of human error by uploading an attachment named Proof_of_Insurance_Not_Reguired. The attachment can be a single page that reads in bold letters, "Insurance Not Required in this State."

  4. Fueleconomy.gov Side-by-Side Mismatch

    Make sure to pull fuel economy information from http://www.fueleconomy.gov/feg/CarsSearchIntro.shtml Uploading the side-by-side comparison from any other site will not include all of the required information and may result in a returned claim.

  5. Transaction Form/Invoice Screen does not match the data in the attached documents.

    Common data entry errors include transposed VINs and Drivers License Numbers. Do not leave any fields blank.

Dealer invoice # 123456 has been approved for payment by the CARS system and sent to the Department of the Treasury for processing. You can expect to receive a direct deposit in the bank account you specified during registration. The payment should be posted to your account within 2 business days. If payment has not been posted to your account within that timeframe, please verify that your banking information, including the ABA routing number, is correct. If there is an error in your bank information, please send an email with your contact information and the corrected banking information to 9-AMC-NHTSA-CARS-AP-SUPPLIER@FAA.GOV.