Cash For Clunkers

Posted by Cindy on July 31, 2009

Just last week, those looking to trade in their old cars for perhaps a new smaller, more gas efficient sports car for sale, found they no longer qualified for the rebate offered called Cash for Clunkers.  This is due to the standards that were changed by the EPA regarding fuel economy.  And in many cases the dealerships are backing out of transactions that were already begun.  One man received a call from a dealership stating that unless he paid forty five hundred dollars more than originally agreed, he would need to bring back the new car, and take his old car in exchange.  He had not filled out all the proper paperwork and so the contract was not valid.  Unless a car meets the standards set out by the Environmental Protection Agency of nineteen miles to the gallon, the car is not eligible.  One man looking to trade in his Toyota found that over the weekend the limit was raised, to one mile over his eighteen miles to the gallon, and again, no longer qualified.

Congress passed the rebate offered by the Cash for Clunkers program on July 24 of this year, and moved up the mileage within one week of the program going into effect.  In determining the miles per gallon, tests were conducted on over thirty thousand different makes and models of cars in order to ensure quality and in the effort to control the emissions of the cars on the roads today.  Many of those looking to trade in their cars are frustrated with the sudden change, as just when the program had started, the rules immediately changed rendering their vehicles ineligible.  Those affected were encouraged to contact the Traffic Safety Administration, but there are no guarantees that they will bend the rules.  Some dealers had been offering advances on the rebate as early as July 1, 2009, however now the retroactive effect is that those who did trade in their 18 mpg clunkers, now owe that $4,500 back to the dealer.  Although some are honoring the original terms of purchase, and the EPA had made it clear to the dealers, that to offer the advance rebates was risky and that the dealers are responsible, the consumers should not be retroactively charged.