Law and Rights
Some car dealers are having consumers sign "waiver" forms that say if their trade in doesn't get "approved" for the Cash for Clunkers program, then the consumer will pay the dealer the difference. Well, now the government is telling consumers not to do it.
Bloomberg News is reporting that the U.S. Department of Transportation is advising consumers taking advantage of the "Cash for Clunkers" program not to sign contingency agreements promising to pay back up to $4,500 if dealers don?t receive payment from the government.
No contingency agreement is required to participate, the Transportation Department, which administers the $3 billion Car Allowance Rebate System, is reported to have said on its Web site.
To enable its dealers to get more money out of consumers, the Minnesota Automobile Dealers Association apparently posted a form on its Web site that car dealers can use to make new car buyers reimburse the dealership the incentive amount if the dealer is unable to obtain the credit from the government "for any reason." The consumer can also return the car to the dealership and pay "a reasonable charge" for use of the new vehicle, according to the form.
Consumers signing the agreement also acknowledge their trade-in vehicle may have been destroyed and can?t be returned. The result? You sign and you're stuck. You give them back the new car and get zippo in return.
Be careful with this Cash for Clunkers program. We are hearing stories of car dealers getting consumers to sign everything and then calling the consumer up days later and saying their trade in wasn't "approved" for the program and now the consumer has to either come up with more cash or return the new car and (surprise, surprise) the consumer's trade in is already been sent off to the crusher and can't be returned.
The whole thing reminds us of the spot delivery yo-yo "your financing wasn't approved" rip off scam where the only thing that really wasn't approved was the amount of greed running rampant at the dealership.
The simple fact is that if the car dealer does it right, they should know immediately whether or not you will get approval and a credit. So don't trust any car dealer who calls you back and wants more money down, no matter what the excuse.
If you think you're the victim of a Cash for Clunkers rip off, call us. We help consumer protect themselves every day. It's what we do.
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Law and Rights
The Cash for Clunkers Car Dealer Rip Off
Some car dealers are having consumers sign "waiver" forms that say if their trade in doesn't get "approved" for the Cash for Clunkers program, then the consumer will pay the dealer the difference. Well, now the government is telling consumers not to do it.
Bloomberg News is reporting that the U.S. Department of Transportation is advising consumers taking advantage of the "Cash for Clunkers" program not to sign contingency agreements promising to pay back up to $4,500 if dealers don?t receive payment from the government.
No contingency agreement is required to participate, the Transportation Department, which administers the $3 billion Car Allowance Rebate System, is reported to have said on its Web site.
To enable its dealers to get more money out of consumers, the Minnesota Automobile Dealers Association apparently posted a form on its Web site that car dealers can use to make new car buyers reimburse the dealership the incentive amount if the dealer is unable to obtain the credit from the government "for any reason." The consumer can also return the car to the dealership and pay "a reasonable charge" for use of the new vehicle, according to the form.
Consumers signing the agreement also acknowledge their trade-in vehicle may have been destroyed and can?t be returned. The result? You sign and you're stuck. You give them back the new car and get zippo in return.
Be careful with this Cash for Clunkers program. We are hearing stories of car dealers getting consumers to sign everything and then calling the consumer up days later and saying their trade in wasn't "approved" for the program and now the consumer has to either come up with more cash or return the new car and (surprise, surprise) the consumer's trade in is already been sent off to the crusher and can't be returned.
The whole thing reminds us of the spot delivery yo-yo "your financing wasn't approved" rip off scam where the only thing that really wasn't approved was the amount of greed running rampant at the dealership.
The simple fact is that if the car dealer does it right, they should know immediately whether or not you will get approval and a credit. So don't trust any car dealer who calls you back and wants more money down, no matter what the excuse.
If you think you're the victim of a Cash for Clunkers rip off, call us. We help consumer protect themselves every day. It's what we do.
Burdge Law Office
www.CarSalesFraud.com
Because someone needs to be on your, side for a change.
Subscribe in a reader- Motor Vehicle Title Late? Maybe You Don't Own Your New Car After All
Buying a motor vehicle can be risky for reasons you didn?t even know about. Are you giving away your money if you don't get a title?When a car dealer sells a new or used motor vehicle, most states require that the dealer transfer the title into the...
- Don't Let Your Car Dealer Steal Your Car. There's A Shortage Of Good Used Cars And Dealers Are Promising The Moon To Get Your's, But Is It Real?
The used car market is constantly changing. But the one constant is that more used cars are sold retail, every year, than new cars. In fact, usually there are at least 3 used cars sold for every new car sold - and that's in a normal year. With credit...
- Ford Loses $2 Billion Judgment - Sued By Its Dealers
Ford, which argues long and hard over having to buy back a lemon car, and then nickels and dimes its customers over every penning of the refund, just lost big time in a case where it was sued by a group of its dealers. A $2 Billion judgment was just granted...
- Car Sales Fraud Rising
New car sales are slowing down and that can mean an increase in fraudulent practices in the used car department, just to keep the money flowing. For the first time ever, the US automakers are predicted to drop to less than a 50% share of the market in...
- New Web Site To Complain (or Applaud) Your Car Dealer
MyDealerandMe.com just might work. It can't hurt. There's a new web site that promotes itself as the place where consumers can complain about the treatment they receive at their local car dealership. Or, they can applaud how their dealer treated...