Gray Market Cars, a Cash for Clunkers Stumper

Even before Transportation Secretary Ray LaHood held a news conference Monday to explain the Car Allowance Rebate System (C.A.R.S.), also known as “cash for clunkers,” it was a busy weekend at the National Highway Traffic Safety Administration. The agency’s hot line received around 45,000 calls from folks eager to learn more about the government’s program to create an economic stimulus for the troubled auto industry and encourage the move to more fuel-efficient cars.

“We’ve gotten thousands of thousands of questions regarding issues that Congress never dreamed of,” said Rae Tyson, a spokesman for N.H.T.S.A., when I called to find out if my 1985 Mercedes 230E would qualify. The car is gray market, meaning it was privately imported after being purchased outside of the United States and brought into compliance with Department of Transportation and Environmental Protection Agency regulations.

The eligibility of gray market cars is one of those issues that Congress did not plan for, but will certainly have to be addressed as more than a half million cars have been imported into the United States over the last 25 years. Bringing European cars to America was big business in the mid-1980s and again in 2001 and 2002.

Don’t let the brand name fool you. My Mercedes is hardly deluxe. It’s a manual transmission, four-door sedan with thin fabric seats and rubber mats for carpeting. Nevertheless, over the years it has been a reliable means of transportation. Three of my four children learned to drive in it, and with the car’s reputation for crashworthiness, I don’t worry when they are at the wheel. These days, my 17-year-old son Sam is driving the car and complaining about never having enough money to pay for gas.

I dismissed this as typical teenager griping until he spent a few weeks calculating the mileage he was getting — barely 12 miles a gallon. So we were primed to explore our options when the cash for clunkers program was announced.

After an hour on the user friendly Web site, I learned that to qualify for the rebate a car has to be rated at 18 miles a gallon or less on fueleconomy.gov, the Web site of the E.P.A. (and the source for determining eligibility in C.A.R.S., according to Mr. Tyson). But because my Mercedes 230E was not sold in the United States, the model is not listed.

“It’s a question of determining if there’s a comparable model being sold in the U.S. that can determine fuel economy,” Mr. Tyson said. “Our lawyers are going to have to make a decision.”

Gray market cars like mine aren’t the only vehicles falling through the cracks in the new program, Mr. Tyson told me, while admitting my particular question did have him stumped. The common industry practice of badge engineering is also causing problems, where one car is listed and a nearly identical car is not.

“If the question has stumped me, it’s going to stump the hot line too,” Mr. Tyson said. “It’s going to require an interpretation that we’re not equipped to make right now.”

Having once worked for lawyers, I did not find the idea that determining eligibility for my clunker might require a legal opinion to be welcome news, and I reminded Mr. Tyson that the program is designed to expire in November. But he hastened to reassure me and others in a similar situation.

“We look upon it as a challenge,” he said. “We’ve just created an entire program in 30 days. You don’t think we can answer a question quicker than that?”