What is Cash for Clunkers (C.A.R.S.) Doing for YOU?

[Jeff Kershner]

@joel - Sounds like you have taken the right measures. If the dealer was unsure of receiving their payment from the gov then they should have not written the deal.

As I have said before over in the forums "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."

"IF THE DEALER HAS THE NEW CAR IN STOCK, THE DEALER MUST ALLOW YOU TO TAKE POSSESSION OF THE NEW CAR BEFORE THE DEALER MAY SUBMIT THE CREDIT APPLICATION TO THE GOVERNMENT. PLEASE REPORT ANY DEALER TO NHTSA THAT DOES NOT ALLOW YOU TO TAKE POSSESSION OF A NEW CAR PURCHASED UNDER THE CARS PROGRAM. PLEASE CALL THE CARS HOTLINE AT (866) CAR-7861."

 

[joel]

@Jeff,
Thank you for your follow-up and support. That text from the Dealer part of the CARS.gov site is exactly what I am going to present to them first. Wish us luck!
-Joel

 

[joel]

@Jeff,
Just a follow-up on the situation with that dealership. They attempted to claim that they were submitting for approvals first and then later would be submitting for the rebate monies. I told them that that is not how I understand how it works from all the research I had done on the CARS.gov website from both the consumer and dealer sides. From what I understand is that it is one form/one filing. You apply for the program and it is both for approval and the rebate. I then said that the rebate money is between them and the gov't as they tried to claim that the girlfriend would have to sign an agreement to pay back the money if rejected by CARS.gov. I told them that they cannot force her to do that. If she wanted to agree to that, then that is her perogative, but it is not a part of the program. You make the sale, deliver the vehicle, submit to the program, that's it! I then was told that I would have to speak with the mgr, but not too long after the sales person came back and stated that the mgr was 10 deep and stated the they would P/D the car for delivery Monday evening - so they knew I had done my homework and gave in. Hopefully, she will take delivery Monday night (I will be there, too) without any added tricks. I did not get to the point of stating the I would be reporting them to the various factions I noted earlier. It is unfortunate how many other consumers this dealership has pulled this off on. There were many vehicles there with the "Sold" sticker on them, but not as many "clunkers" there (could have scrapped many already). But, it could be that others have challenged them and the been delivered the vehicle, but many don't even know what is happening to them. I am still debating on reporting them even after she receives delivery on Monday. I was not rude or insulting in any manner, just had done my homework and therefore had plenty information as my weapon against their lies.
Thanks again,
Joel

 

[Shirley (blog)]

I signed a deal for a car back on July 31. My old vehicle has been owned and insured by myself since 1997 with absolutely no lapses in insurance or registration.
My dealer WILL NOT release any cars under the program until they get paid. I called the cars hotline and was told that they were only collecting information and weren't really doing anything against the dealers at all.
She kept saying that the dealer would be paid in 10 days. She didn't say whether the 10 days started when I signed the deal or after the rebate was approved. I tried to get it clear, but she just kept stating the program was designed for payment within 10 days.
So, here I am 22 days later, still waiting for my vehicle. I also still have my clunker. I'm worried that somehow my deal will eventually become invalid and I will have to start all over with a 13 year old car with over 218,000 miles that won't get my any kind of trade in value like this program.

 

[Jon Groenig]

This is a great example of why the government should stay out of the car business or any private business. Dealers are basically fronting the government thousands of dollars, the government isn't paying out in a timely manner, and of course the dealers get to take crap from everybody, no wonder dealers started walking away from this well thought out program.

And let's not forget the best part, the low income people in our nation get screwed again. I hear daily from customers how they can't believe how many really nice cars are being destroyed in this program, you guys taking these vehicles in know what I am talking about. This program has also driven prices up at the auctions, because instead of taking in a trade in that can be retailed they are sending them to the wreckers, so now dealers are fighting to stock up their lots, which in turn raises prices, screwing our lower income citizens again.

 

[chris (blog)]

I recently traded in a "clunker" for a new car. The CT Dealership told me what I needed (title, past two registrations, insurance card and letter from Agent stating coverage last year). I supplied these. We completed paperwork including a contract , loan, and temp. registration. (they said could not print final reg. as system was down). I asked if everyting was in order. They say "yes, and if we find any issues that will be our problem. Once you drive off we are done". I signed over my title too. I then drove home with the car. They call the next day and say that there was laps in my registration that they just noticed. I do not recall any but they say DMV insists and they want the car back. There was no conditional clause in the contract and just states $4500 trade in. Can they do this? They are saying that they can do this and will refuse to now register the car (lucky for them their system was down). I do have the temp but only good for 2 weeks. Doesn't issuing the temp imply they are bound to put through a "real" registration? Would that be a breach of contract? Also, if my registration did, in fact, have a laps (not sure how but anything is possible) does that play into things even if there was no condition stated or signed on the contract, nor “Summary of Sale and cerification” form signed? Lastly, if I do have to give the car back am I liable for mileage driven (when I left the dealership I went on a weekend vacation driving 400 miles each way!! I wanted to get used to the car as well as break it in)

 

[John Quinn]

Long story short, if the dealer is saying that you are not eligible because of a lapse in registration, it means that you need to either return the vehicle or reimburse the dealer for the voucher amount. If you are not elibible for the program, then the dealer has every legal right to pursue you for the return of the vehicle or for reimbursement. All that "other" stuff is irrelevant.

 

[chris (blog)]

Thanks! I did call an attorney just to see where I stand. He said that since I had a signed contract, and loan contract, with no mention of contingency and I had signed no paper saying I was guaranteeing that I was eligible it was very bad on the dealership's part (for them) to make the deal, and sign all paperwork. And since there is a registration fee on there he said they could not refuse to register it. He did say that to be sure he wanted to see the paperwork but that based on what he heard, in CT the car is mine if I choose to force the issue. The documents I submitted were all original and the fact that they missed what the DMV claims is the renewal date is their ultimate responsibility (because they went ahead and finalized the deal, including delivery). I do have a cancelled check showing renewal on time but, per the dealership, that does not count - only what is on the registration and what DMV says. That said, I am not trying to be a jerk about this. If I really did have a laps (still TBD) I think the right thing to do would be to work out a deal in which it is fair for all parties, as opposed to "punishing" the dealership for less than quality practices. Maybe that the $4,500 minus the blue book value of my trade and then split that with them? Justlooking to find a way we can all live with this mess.

 

[chris (blog)]

btw- when I say "what he heard" I mean what he heard from me as to the facts, not that he is basing his opinion on "what he heard" elsewhere as to the law.

 

[Jon Groenig]

I am glad the government is out of the car business tomorrow, I wonder what kind of losses the dealers will be left with when this is all over. I am sure everybody on the car business side has noticed how all the customers feel the dealers are the assholes in all this, when most of the problems are on the government end or from lack of truthfulness from customers.

Customers need to realize the dealer is on their side in all of this, if there is any way possible to keep them in the car they will bend over backwards to make it happen. I can assure you they don't want a new car back with miles on it, scratches, dings, or stains.