Who would have ever thought that the “Cash for Clunkers” program would run through a billion dollars in a few days by simply offering an incentive to turn in your gas guzzler for a new fuel efficient automobile AND to be part of the economic solution by jump starting the auto industry?
I never dreamed this program would be such a success – but here at BBB, we don’t so much as dream as have nightmares of the potential scams and fraud that results when consumer demand is high!
What’s our CARS (Car Allowance Rebate System) nightmare? Let me count the ways!
(1) Advertising – There are websites popping up each day with sound-alikes and look-alikes designed to entice you to provide personal identifying information to either make unauthorized charges on debit/credit cards or literally steal your identity.
· Official government websites end in .gov; there are legit websites about this program, but those advising you to “pre-register” for the incentive program or to submit any identifying information may be the one waiting to drive off with your identity and drive you into debt.
· Avoid online sites that attempt to conduct car deals online as the CARS program incentives are only available through direct contact with your local registered dealer.
· Watch out for dealers advertising they are “official” or “government approved” dealer – any NEW CAR (not used) dealer is eligible for the program IF they register. A list of registered dealers can be found www.cars.gov.
(2) Sales Presentations – Beware of that slick “used car salesman” speech translated into today’s new car sell. The new car dealer:
· CANNOT offer you a money order, check or direct deposit for the rebate. You will only benefit from CARS by getting the reimbursement amount reduced from the purchase price of a new vehicle.
· MUST disclose the estimated scrap value of your clunker which you can use to negotiate the new vehicle price. Remember, the scrap value will be in addition to the rebate and not in place of the rebate.
· SHOULD fully disclose which vehicles qualify and DON”T qualify for incentive, the number of vehicles eligible for the purchase, and any other qualifiers identified by the official website www.cars.gov
(3) Agreements/Contracts – as with all contracts, READ ALL FINE PRINT, ask questions, and know what you’re signing before you sign!
· The dealer does NOT need your social security for this program.
· REMEMBER – the dealer must submit documentation, including proof that the car has been disabled and is “salvage yard ready” to the CARS.gov website and then actually has to wait to see if the incentive has been approved for your purchase. Your contract should specify what your obligations are for your new car purchase IF your incentive is not approved.
As you know by now, the only site authorized for official government information is www.cars.gov. Don’t be fooled, protect your personal information and understand your contract before signing. For more tips on purchasing a car, visit www.bbb.org. AND to find a car dealer you can trust, visit www.abc2news.com/bbb for our roster of trustworthy businesses.
Talk soon - Angie
