Cash for Clunkers scams: Naughty Business of the Week
Cash for Clunkers certainly has been popular, with more than 250,000 vehicles sold with the help of $4,500 from the federal government.
But in your haste to take advantage of the credit, steer clear of any Cash for Clunkers scams, warns the Federal Trade Commission.
Figuring out whether your new car, or your trade-in, will qualify is complicated enough, but the best source of information is the official cars.gov Web site.
And remember, you don't need to register or sign up in any way to take advantage of the deal --- instead, it's the dealer's responsibility to fill out the paperwork to get reimbursed later.
Any sites that ask you to enter your name, address and Social Security Number are just "phishing" for your information. If you find a site like this, report it to the FTC at ftc.gov or 1-877-FTC-HELP.
If you suspect other Cash for Clunkers-related scams or fraud, tell the National Highway Traffic and Safety Administration at 1-866-CAR-7891.
(photo: dno1967/Flickr)
Categories: Cars, Naughty businesses/NBotW, Scams





Comments
Why are we rushing to pass this bill to provide money for the CARS program. This reminds me of the way the first TARP funds were rush through only to be misused. There is time to think this through and see the consequences of our actions.
2010 Jeep Commander 4WD
2008 Land Rover Range Rover Sport
2008 Jeep Commander 2WD
2005 Chevrolet Van 15/25 2WD Conversion
2002 Jeep Grand Cherokee 2WD
According to CARS.gov these vehicles May qualify for cash for clunkers. Although I doubt someone would trade in a 2010 or 2008 for 4500 dollars. However this shows the folly of this program. They can scrap a 1 year old car. Someone is likely scrap a perfectly usable 2005 Chevrolet Van 15/25 2WD Conversion with high miles or cosmetic imperfections or maybe broken Air Conditioning and radio. There are people and business that cannot afford a new car and could otherwise use some of these vehicle that are being scrapped.
CARS program is in fact very wasteful and therefore is not an benefit to the environment. We must also consider the fact that to manufacture a car or truck creates pollution and toxic waste.
Vehicles older than 25 years are not eligible for CARS rebate. These older cars pollute more, use more gas and are less safe. They have no airbags. Does that make sense?
If the new vehicle has a combined fuel economy that is at least 4, but less than 10, miles per gallon higher than the traded-in vehicle, the credit is $3,500. If the new vehicle has a combined fuel economy value that is at least 10 miles per gallon higher than the traded-in vehicle, the credit is $4,500. This means that 2002 Jeep Grand Cherokee 2WD which gets 15 mpg will get a credit if the replacement car gets only 19 mpg.!
The program should require a much higher fuel economy rating.
The program should merely be a tax credit for buying an ultra fuel efficient or electric vehicle.
Instead of trashing the whole car, Why not refurbish it with a more efficient engine. There are also companies that can convert a gasoline powered car to electric. This would make sense!
Some are admitting that this program is merely an economic stimulus plan. I and many others don’t like it. It is going to increase my taxes somehow. It is as if I am giving the money to other people to buy a new car. Even worse is that it is rewarding those who wasted gasoline all these years because they did not care about fuel economy when they bought their car. People who were responsible and bought a fuel efficient vehicle which, for other mechanical reasons, may now be a clunker, have no incentive to buy a new vehicle. However that is far from my primary concern
In the early 1930s during the great depression . Millions lost their jobs and while many went hungry, farmers poured large quantities of milk into ditches and government officials forced farmers to kill millions of farm animals. The economic system stipulated that farm products and other commodities be sold for a profit. Milk, meat , and grain had great value to the poor . However when food could not be sold profitably it was deemed worthless and were disposed of. This seems to be what the CARS program is all about! We are eliminating the supply of usable vehicles to make a demand for new cars at a profitable (higher) price. The rest is just environmental green-washing. This is both wrong and short sighted. It is setting a bad morale example and is further perpetuating the throw-away society that has evolved around us. It is bound to fail in the end and cause more harm than good.
What happened to the green economy we were promised during the election? These billions of dollars can be used for solar panels on homes instead.
Posted by: Joe | August 4, 2009 9:42 PM