Certainly the Car Allowance Rebate System (CARS) and the Cash for Clunkers program has not only increased automobile sales, created great dealership and automaker profits, stimulated the stagnant economy, and provided monetary relief too many consumers such as you and me. It is becoming increasingly apparent that the CARS and the Cash for Clunkers law was written without comprehensive vision and contains several pitfalls, the losses of which dealerships are trying to force on us the consumers. Our law firm now is receiving calls daily concerning the application of the CARS and the Cash for Clunkers program, and as of today we have already been retained by two clients with regard to the application of the law.
The main problem with CARS and the Cash for Clunkers program is when you purchase a new vehicle from a local dealership with the understanding that you will receive either the $3,500.00 credit or $4,500.00 credit from the federal government’s CARS program for the destruction of your “clunker” and then you enter into a contract with a 3rd party financier for the balance (or pay the balance in cash), drive off the lot in your new car, your “clunker” is then crushed, and then the federal government denies credit because the vehicle is in some way ineligible. CARS and the Cash for Clunkers programs do not consider this scenario. The legislature’s comments concerning the law seem to indicate that the loss would fall upon the dealership. However, this has not stopped dealers running promotions they should have known were not going to receive the credit from bullying consumers, wrongfully holding up transfer of title on your new vehicle, leaving harassing messages on your phone, and threatening lawsuits when the $3,500.00 credit or $4,500.00 credit from the federal government’s CARS program even though your “clunker” has already been destroyed.
Don’t let your automobile dealership bully you into reimbursing them $3,500.00 or $4,500.00 for a mistake they made regarding the eligibility of your clunker. Get the facts and know your rights. To discuss your situation or for more information about CARS and Cash for Clunkers Program and to retain Garmo & Kiste, PLC call us at (248) 398-7100 for a free consultation.
Some dealerships burned by CARS and the Cash for Clunkers program now require individuals to sign a contingency agreement concerning the reimbursement of the credit should your clunker be rejected by government under the program. One thing is certain- a consumer does not have to sign the contingency arrangement in order to participate in the CARS program. If your dealer requires you to sign such a contingency arrangement in order CARS program, you need to find another dealer to purchase your car from, don’t let a dealership take advantage of you.
For questions concerning the Cash for Clunker Program, CARS, and your new car’s contract and to retain Garmo & Kiste, PLC call us at (248) 398-7100 for a free consultation.