Cash for Clunkers Program

[ZenGum]

So, ya feelin stimulated?

[lumberjim]

OVERstimulated

[ZenGum]

Groundskeeper Willie! I want you to remove all the coloured chalk from the classrooms.

[richlevy]

It looks like some dealerships are trying to cover their asses. From here.

I waited patiently for about a half hour when I submitted my CARS documents to the business office, and waited another 45 minutes until it was my turn in front of the business manager to finalize paperwork. Everything was going smoothly and I was asked to sign some forms. Instead of just signing away, I recalled a few tricks I had heard dealers were pulling and started examining the documents carefully. He suggested that I could "just sign this page" and he'd fill in the rest later. I relayed that I was uncomfortable with that, considering he could write in whatever he wanted to and it had my signature on it, so he agreed to have his assistant fill it out before I signed it. Most of the other pages were fine, until I reached a carefully worded statement regarding specifically the CARS program. If I signed this page, the language was as such that if for whatever reason the government didn't provide the dealer with the proper refund, I would be held accountable for the $4,500.
This was a deal breaker and things quickly became heated. While my car was old and needed some work, it was drivable and I was perfectly willing to leave without the Sentra. He informed me that he had to protect his dealership, in case the money from the hundred or so cars he already sold didn't come in. I thought to myself, while that is fair, why are you selling cars under this program if you're uncertain about the refund? Thankfully, the www.cars.gov website was at my fingertips and I was able to quote, verbatim, the language indicating that they could not make me sign this form. I'm not sure if he didn't believe me, but he still refused adamantly. I informed him I would leave with my money and I was expecting my deposit back as well... then I mentioned I would tell people about my experience at his dealership and what he was expecting people to sign.

Here is the exact answer from the CARS site.

A dealer has included in the purchase agreement a requirement that I return the new car or pay the dealer the amount of the CARS program credit if the CARS program credit application is rejected. Do I have to sign this in order to participate in the CARS Program?

NO. You are not required to sign an agreement like this to participate in the CARS Program. However, you may agree to such a term, but your choice to agree is between you and the dealer.

Would anyone buy a car if they thought they might get stuck paying an extra $4500? I think not.

[lumberjim]

If you buy a car from us, and it's a cash for clunkers deal, you will sign a letter like that. I'll tell you what it is that you're signing. Ours is a bit different in that it gives u s a lien on the car. You don't have to pay the $4500, but if you want to keep the car you do. We won't do anything to the trade until we're paid for the rebate. while you don't have to sign this letter....we don't HAVE to sell you a car.

not fair that the dealer get stuck either, ne?

[classicman]

No one should get stuck, you're both right. But I find it disconcerting that a dealership would dump it all on the buyer and in this case what appears to be in a rather underhanded way. Why doesn't the paperwork say "We'll split it with you" instead of You Mr./Ms. Buyer are required to pay an extra $4500...?

[glatt]

But the buyer gets the car itself. Why should the dealer pay $4500 when they get nothing in return? The buyer gets a car in return.

[xoxoxoBruce]

Nay, nay, the dealer gets the pleasure of dealing with lovely people that hate them, don't trust them, and suspect they are all closet pedophiles.

[spudcon]

Haven't read the entire thread, but has anyone considered what this is going to do to the used car market? Because they're crushing all the cars they're taking in, there will be fewer used cars on the market, and those without the credit or resources to buy a new car are out of luck again. Another big government program that screws the poor.

[classicman]

Originally Posted by glatt

Why should the dealer pay $4500 when they get nothing in return?

So the dealer is just there to deliver a car free from profit for the manufacturer? Huh?

They got the business - they made a profit, one could assume. How much depends on a number of factors.

Who would buy something for say $30,000? Then find out the cost was actually $4500 or 15% more? That makes no sense either. Neither should be on the hook for the whole amount.

[monster]

Originally Posted by spudcon

Haven't read the entire thread, but has anyone considered .................

if you had read the entire thread, you'd know whether or not this had been considered *sigh*

[Clodfobble]

As long as the customer has the option to return the car instead of forking over the extra $4500 (and getting their tradein clunker back before it's crushed,) I don't see the problem.

[jinx]

You can't return a new car - it wouldn't be new anymore. And new cars depreciate quickly.

[richlevy]

Originally Posted by lumberjim

If you buy a car from us, and it's a cash for clunkers deal, you will sign a letter like that. I'll tell you what it is that you're signing. Ours is a bit different in that it gives u s a lien on the car. You don't have to pay the $4500, but if you want to keep the car you do. We won't do anything to the trade until we're paid for the rebate. while you don't have to sign this letter....we don't HAVE to sell you a car.

not fair that the dealer get stuck either, ne?

So if I pay $30000 for the car and can't come up with the extra $4500, what happens? The car depreciated the moment it left the lot. Do I get my $30000 back or does the dealership try to give me $26000 back for my 'used' car?

[xoxoxoBruce]

The dealer is selling you the car, with Uncle Sam as your co-signer. If Sam doesn't come up with his share, take it up with him.