Cash for Clunkers Scams Posted by AVCU on 9:12 AM

The Car Allowance Rebate System (CARS), more fondly called Cash for Clunkers program, has had a lot of press this summer. CARS provides a rebate for consumers trading qualifying gas guzzlers for more energy efficient cars. It has generated more than $920 million in rebates and more than 220,000 in auto sales. The initial $1 billion set aside for the program is gone, and the Federal government quickly appropriate another $2 billion.

Even before the legislation passed, the National Highway Traffic Safety Administration reported scammer websites soliciting information like names, addresses and Social Security numbers in order to "register" people for the program. The Better Business Bureau (BBB) received reports of phone calls with offers for help in filling out the paperwork to receive a voucher to participate in the program.

BBB suggests the following cautions to avoid CARS program scams:

• There's no need to register or receive a voucher to participate in the program. The dealership fills out all appropriate paperwork.
• Not all dealers participate in the program. Participating ones dealers register with the Federal government.
• The program applies toward new cars and trucks that are either leased or purchased.
• Not all new vehicles will qualify for receiving the credit. The vehicle must be priced less than $45,000; passenger vehicles must have a combined fuel economy value of at least 22 mpg.
• The amount of the credit is $3,500 or $4,500, based on the difference between the combined mpg of the trade vehicle and the mpg of the new vehicle.
• Trade-ins must be no older that 25 years and have a combined city/highway fuel economy of 18 miles per gallon or less. Visit www.fueleconomy.gov for specific vehicles data
• The trade-in must have been continuously insured, and registered in the same owner’s name for one-year immediately prior to trade-in.

Additional restrictions apply. The official website for the CARS program is www.cars.gov There's also a CARS Hotline at (866) CAR-7891.