Transcript National Conference of State Legislators

CARS
Disposal and Reporting of CARS
Trade-In Vehicles
NHTSA Webinar
March 3, 2010
Topics for this Webinar
 Salvage Auction Requirements
 Disposal Facility Requirements
 NMVTIS Reporting
 Certification Forms
 Penalties
Salvage Auction Responsibilities
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Reporting to NMVTIS as “Sold”, within 3 days of
consignment by dealer
Limiting participation in the auction to disposal facilities on
the NHTSA list found at http://www.cars.gov/files/disposalsalvage/ELVS.pdf
Obtain the signed Disposal Facility Certification Form from
the purchasing facility

If known, insert the appropriate CARS invoice number on the
top of the form

Provide the form to NHTSA via email at [email protected]
Disposal Facility Responsibilities

Report to NMVTIS twice.
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
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Within 7 day of receipt of the vehicle (report as “Scrap”)
Within 7 days of crushing/shredding (report as “Crush”)
Remove all environmental hazards consistent with ELVS
Crush or shred the trade-in vehicle onsite

Includes the engine block and the drive train (unless with
respect to the drive train, the transmission, drive shaft, and
rear end are sold separately),


Use a stationary or mobile vehicle crusher
Must occur Within 270 days after receipt of the vehicle from
the dealer or salvage auction
Disposal Facility DON’Ts
 DO NOT sell CARS engines, not even to
engine recyclers
 DO NOT transport CARS vehicles to
other disposal facilities for crushing or
temporary storage
 DO NOT report CARS vehicles as
CRUSHED in NMVTIS until they are
actually crushed
Disposal Facility DOs
 Keep CARS engines with the vehicle for
crushing or maintain records to confirm
they were crushed if audited
 Retain Disposal Facility Certification
(Appendix E to part 599) forms onsite
for 5 years
Keep Engines with Vehicles
Stacking is not Crushing:
This is not Crushed, yet…
Crusher Example
Acceptable Crushed Vehicle
What Parts cannot be resold?

Engine block


NHTSA interprets this to mean the part of
the engine containing the cylinders,
typically incorporating water cooling jacket
Drive Train

Transmission, drive shaft, and rear end
must be sold as separate parts
 Vehicle chassis
Parts
Not a Part
Must be Crushed
NMVTIS Reporting Requirements

Salvage Auction:

Notify NMVTIS 3 days after receipt from dealer, or
prior to auction (whichever is earlier).
 Identify as “Sold”

Disposal Facilities:

Notify NMVTIS no more than 7 days after receiving
the vehicle
 Identify as “Scrap”

Notify NMVTIS no more than 7 days after crushing
or shredding
 Identify as “Crush”
NMVTIS & Disposal Form
Reporting is Required by Law



It is required by the CARS Rule (49 CFR Part 599)
Failure to do so can result in a civil penalty of up to
$15,000 for each violation.
Example of Non-Compliance Risk

Johnny D’s Salvage Auction sells 250 CARS vehicles to
Big Lloyd’s Disposal.

Johnny D does not obtain signed “Salvage Auction
Certification Form” from Big Lloyd Disposal and neglects
to forward to NHTSA at [email protected]

Johnny D is subject to penalties up to $3.75M
Top Reporting Mistakes

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ELVS number is often blank or incorrect.
Invoice numbers are either missing or not matching the
database.
Dealer block and Disposal block are transposed.
Dealer and disposal sections have the same business in
both blocks.
Contact fields are left blank, or are illegible.
Legal Business Name vs. DBA Name.
The Model Field is not consistent with the data base.
The VIN number is not a valid VIN
Altering the certification form
Where Can I Find Disposal Forms?

http://www.cars.gov/dealersupport/required-forms

Disposal Facility Certification form:
http://www.cars.gov/files/disposal-salvage/disposal-facilitycertification-form.pdf

Salvage Auction Form: http://www.cars.gov/files/disposalsalvage/salvage-auction-certification-form.pdf
DO NOT ALTER THE FORMS!!!
How to Report through NMVTIS
Select an
approved
third party
data
consolidator
http://www.vehiclehistory.gov/
Approved Third Party Data Consolidators for
Reporting to NMVTIS

Please contact data consolidators for more information on reporting
methods and technical specifications.

AUTO DATA DIRECT, INC.
Web site: www.add123.com
Telephone: Toll Free: (866)-923-3123; Local (850)-877-8804

Salvage:
Jay Svendsen: [email protected]

INSURANCE SERVICES OFFICE (ISO)
ISO ClaimSearch Customer Support
Phone: 1-800-888-4476
E-mail: [email protected]
Web: www.iso.com/nmvtis

AUTADEX
Phone: 1-800-237-3463
Web: http://www.audatex.us/recycling_solutions/NMVTIS_reporting.aspx