Government Tells ‘Clunkers’ Buyers Not to Sign Waiver

[Purveyor]

By Jeff Plungis

Aug. 13 (Bloomberg) -- 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, said on its Web site.

The Minnesota Automobile Dealers Association has a form on its Web site that members can use as part of a new-car closing. By signing the form, the buyer agrees to 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.

Dealers may also be acting improperly by asking consumers to keep their old cars until credits for their vehicles are approved by the National Highway Traffic Safety Administration, the Transportation Department said on its Web site. If the new car is in stock, the dealer must allow the buyer to take possession before the paperwork for the credit can be submitted, the department said.

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BLOOMBERG: http://www.bloomberg.com/apps/news?pid=20603037&sid=agbNuHvQk5Y0

[47of74]

1. Would you want to buy a vehicle from those dealers anyways?

They sound a shade dishonest to me to be pulling that sort of crap.

[Obamanaut]

2. I always though 'dishonest' and 'car dealers' go hand in hand. Well,

maybe not dishonest, but not totally truthful.

[TheMadMonk]

3. I thought Danni DeVito in Matida was an example of an honest...

...Used Car Salesman.