• Stop being a LURKER - join our dealer community and get involved. Sign up and start a conversation.

Cash for Clunkers

Why would a dealer complete a deal with me for my new hatchback subcompact, complete all the paper work, and then at the last minute ask me to leave a deposit (which he said he would not cash "unless something happened") for the $4500 amount that my trade in already represented in the deal and completed paper work. Foolishly, tired after three hours in the dealership, I signed such a check and left it. I also wrote a separate check for the amount of money I was to pay for the car after deducting the $4500 from the Out The Door price. It kept nagging me for two days--the sale was last Saturday, in Florida. I drove the new car home. I'm very happy with it. Then yesterday I called the Main Office of the Brand, in California, and they said that dealer's practices are up to the dealers and their market, but "if I had any doubts about an unnecessary check being out there like that, to put a stop to it." I did. I called the dealer to tell him that the deal was complete without that extra "contingency $4500 check being in his hands." The person at the Corporate Headquarters for the Manufacturer said, "If they're not going to cash in a check then they don't need it."

Now I'm left with this nagging thought that something was not up to snuff with whatever this dealer was doing, and that a surprise will be sprung on me because of whatever relationship that dealer has with the Govt. office in charge of Cash for Clunkers.

I think what they did was some sort of malpractice, something off the cuff. What were they planning to do if "something went wrong with the Cash For Clunker thing," return my old car to me after two or three months?

I've already put the new car under my insurance. I'm driving it. I paid for it, including a check for $10880, plus another $3000, plus the Trade In Value of $4500 for my Mazda MPV.

Something doesn't smell right. The dealer has not returned my calls. I called them yesterday, three times.

Appreciate any clues, hints, or ideas on why they did this.
 
The check was a most likely measure of safety for the dealer. The CARS program requires approval from NHTSA in order for the dealer to get re-imbursed the $4,500. But what happens if your deal does not get approved? Then the dealer is out $4,500.

Trust me when I say that the lengthy Cash for Clunkers guidelines are very specific and have raised much confusion and questioning from dealers across the nation.
 
Ouch, that's crossing the line big time. That's som short sided thinking at that store. What if a local TV nees station got ahold of that practice. Ouch. The dealer is a registered rep. of the US govt program. It is the dealers responsibility to execute the plan. I'd call my attorney and put a stop payment on that check.
 
Word on the Web today....

The NHTSA is estimating $858 Million is left, but over 65% of the deals have not been reported. $17.1 Million was used up on July 24th sales, and $75 Million from the 25th based on deals already submitted. That means there is an estimated $300 Million in funding left. They claim their systems are not adequate enough to handle all the claims as they only had 30 days to put things together.

According to other dealers, they have been able to report less than 5% of what they've sold due to time-outs on the registration process pages. Frustrations are very high as dealers can get through quite a few steps but then it just times-out on them 3/4's of the way through. Nobody has received an approval yet, but nobody has received a rejection either.
 
Word on the Web today....

The NHTSA is estimating $858 Million is left, but over 65% of the deals have not been reported. $17.1 Million was used up on July 24th sales, and $75 Million from the 25th based on deals already submitted. That means there is an estimated $300 Million in funding left. They claim their systems are not adequate enough to handle all the claims as they only had 30 days to put things together.

According to other dealers, they have been able to report less than 5% of what they've sold due to time-outs on the registration process pages. Frustrations are very high as dealers can get through quite a few steps but then it just times-out on them 3/4's of the way through. Nobody has received an approval yet, but nobody has received a rejection either.

:thumbup: That's all I'm finding as well...beat me to the punch.
 
Our dealership submitted 28 deals yesterday evening. Doing them after 5 pm PST seemed to be the key to having good functionality on the site. We hope to submit another 37 today. All of the deals are currently listed as "Under Review" on the View Invoices screen and the Status is listed as "In-Process" on each individual invoice.

Has anyone had their transaction get further than this point. If so, what was the time frame and the different statuses?

I am told that there is a dealership in the Portland, OR area that has already received payment on a transaction. I am receiving this information third hand so I have no proof. Has anyone received funds on a transaction yet?

Steve
 
Last edited:
Why would a dealer complete a deal with me for my new hatchback subcompact, complete all the paper work, and then at the last minute ask me to leave a deposit (which he said he would not cash "unless something happened") for the $4500 amount that my trade in already represented in the deal and completed paper work. Foolishly, tired after three hours in the dealership, I signed such a check and left it. I also wrote a separate check for the amount of money I was to pay for the car after deducting the $4500 from the Out The Door price. It kept nagging me for two days--the sale was last Saturday, in Florida. I drove the new car home. I'm very happy with it. Then yesterday I called the Main Office of the Brand, in California, and they said that dealer's practices are up to the dealers and their market, but "if I had any doubts about an unnecessary check being out there like that, to put a stop to it." I did. I called the dealer to tell him that the deal was complete without that extra "contingency $4500 check being in his hands." The person at the Corporate Headquarters for the Manufacturer said, "If they're not going to cash in a check then they don't need it."

Now I'm left with this nagging thought that something was not up to snuff with whatever this dealer was doing, and that a surprise will be sprung on me because of whatever relationship that dealer has with the Govt. office in charge of Cash for Clunkers.

I think what they did was some sort of malpractice, something off the cuff. What were they planning to do if "something went wrong with the Cash For Clunker thing," return my old car to me after two or three months?

I've already put the new car under my insurance. I'm driving it. I paid for it, including a check for $10880, plus another $3000, plus the Trade In Value of $4500 for my Mazda MPV.

Something doesn't smell right. The dealer has not returned my calls. I called them yesterday, three times.

Appreciate any clues, hints, or ideas on why they did this.

Ouch, that's crossing the line big time. That's some short sided thinking at that store. What if a local TV nees station got ahold of that practice. Ouch. The dealer is a registered rep. of the US govt program. It is the dealers responsibility to execute the plan. I'd call my attorney and put a stop payment on that check.

Yeahh...I can understand the dealer wanting to protect themselves here but I agree with Joe. That's crossing the line and I would pay the $20 to stop payment on the check.

Cash for Clunkers is bringing the dirty out of many dealers....It's almost like the government has written a ticket for dealers to (basically forced to) play their old school tricks again.
 
Are any of your dealerships saying F*#k it to the cash for clunkers program? Mine is worried about never getting paid, so pulling back from the madness. We did really well with the selling part, but like usual the government makes everything impossible due to lack of preparation and intelligence. Maybe they should have used some of the stimulus money to buy the proper amount of servers and staff....just a thought.
 
We sell new Chevys. Our owners saw the chaos coming and wanted nothing to do with it.

"For every action, there is a reaction".
I'm not grinding any axe here, but, this is why Obama has to slow the pace of change down to let the operations people see where and how new programs impact.

"We never seem to have enough time to get it done... but somehow, we always find time to do it over"