Consumer Warning – Beware of What You Are Signing!!
Sunday, July 26th, 2009
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.