Cash for Clunkers

BUYER BEWARE OF WHAT YOU ARE SIGNING!

All consumer participants in the Cash for Clunkers program need to be aware of what they are signing.  A specific example is do not sign a “Waiver of Liability” that if the NHTSA rejects the trade transaction, the dealership is not responsible for returning your vehicle in pre-trade-in condition.  In the Cash for Clunkers transaction the dealership is responsible for rendering your trade-in’s engine inoperable or having your vehicle crushed.  If the dealership does this before the NHTSA approves your transaction and for some reason the transaction is not approved your collateral (your vehicle) is now destroyed.  Make sure that if the NHTSA rejects the transaction or your loan is rejected that you will get your car back in pre-trade-in condition or the dealer gives you cash equal to the value of your trade-in.

Another issue to be aware of is to insure the dealership is using the proper data to evaluate the MPG rating for your trade-in.  There is only one official table that is to be used for figuring MPG ratings and that is at http://www.fueleconomy.gov/feg/findacar.htm.  Do not allow the dealership to use anything else.  This is the only table that the NHTSA will use!

Also see my hubpage at http://hubpages.com/t/ab49b.

Be An Educated Buyer!!

It is being reported that we are seeing new car advertisements that are very vague on the detailed breakdown of the incentives subtracted from the new car price that is being advertising.  Advertisements  just state that the new car is$15,000 with all applicable incentives and government voucher.  Do not fall for this.   The dealership has no idea what someone is trading in and the car brought in under the Cash for Clunkers program may qualify for $3,500 or maybe $4,500 if it was an old SUV with a big V8.  Negotiate the sell price of the new car first then subtract what is applicable for incentives and vouchers.  First negotiate the price of the car without incentives.  This way when you go from dealer to dealer to compare prices, and I strongly recommend you shop around, you will be talking apples to apples.  No tricks, no cloaking the price and confusing the buyer.  The potential voucher should have no impact on the base price in which the dealer is willing to sell the car to you for.  There is no reason when you initially discuss a price on a new car that you need to disclose to the sales person that you are going to participate in the Cash for Clunkers program.  Negotiate the price then talk voucher. You, the buyer, must maintain control of this process.