WASHGINTON – The National Highway Traffic Safety Administration (NHTSA) amended its rule implementing the CARS program. Dealers may now choose to disable the engine of the trade-in vehicle after they receive payment from the government for the credit (not more than seven calendar days after payment). However, until the vehicle’s engine is disabled, the dealer must store the vehicle at a location under the control of the dealership.

In addition, because New Hampshire and Wisconsin do not have an insurance requirement under State law, trade-in vehicles registered in these two States are exempt from the one-year insurance requirement.

Click here to view the agency's amendment to the rule.