Cash4Clunkers main website update

[DianneWhitmire]

YOU ASKED. WE LISTENED.

We’ve heard that dealers are asking consumers to sign agreements with contingencies when they participate in the CARS program.
CONSUMERS ARE NOT REQUIRED TO SIGN CONTINGENCY AGREEMENTS TO PAY BACK THE DEALER SHOULD THE CARS CREDIT BE REJECTED.
We’ve also heard that dealers are asking consumers to keep their “clunker” until the deal is approved by NHTSA.
IF THE DEALER HAS THE NEW CAR IN STOCK, THE DEALER MUST ALLOW YOU TO TAKE POSSESSION OF THE NEW CAR BEFORE THE DEALER MAY SUBMIT THE CREDIT APPLICATION TO THE GOVERNMENT. PLEASE REPORT ANY DEALER TO NHTSA THAT DOES NOT ALLOW YOU TO TAKE POSSESSION OF A NEW CAR PURCHASED UNDER THE CARS PROGRAM. PLEASE CALL THE CARS HOTLINE AT (866) CAR-7861.
To find out more about dealer contingencies click here.

[urlyadoptr]

I showed this info to the dealer that's holding onto my new Prius pending C4C approval; I was basically told if I don't like it, we can cancel the deal and get my deposit back. In addition, I learned that my deposit isn't actually holding anything. They could sell the car out from under me if someone comes along that wants it without a clunkers trade. (The purchase agreement has no vehicle assigned to it.) When I do get approved, my car might, or might not be, available. And it seems all the dealers in my region are doing this. Yep, I'm a little irritated.

I have an email into two of the dealership's owners. If not resolved to my satisfaction, I'll be calling the CARS hotline.

Dianne, I trust your dealership is not holding deliveries pending approval? Do you know if the law actually prohibits dealers from holding deliveries, or is this only guidance from NHTSA?

Thanks!

[DianneWhitmire]

If you don't have a contract with a VIN then you have air.
I'd find a different dealer who's doing as the CARS program states.

We have 120+ clunkers stacked up like incoming planes over LAX back here. You can't believe the junkers we have. And, I am sure I have seen at least 3 dozen hauled off already. We are doing it to the letter of the law. Why risk $4500 per car or worse: reprimand, broken trust and huge fines?

Find a better dealer. If you read the website text I put there and click the link, you'll have your answers.

Originally Posted by urlyadoptr

I showed this info to the dealer that's holding onto my new Prius pending C4C approval; I was basically told if I don't like it, we can cancel the deal and get my deposit back. In addition, I learned that my deposit isn't actually holding anything. They could sell the car out from under me if someone comes along that wants it without a clunkers trade. (The purchase agreement has no vehicle assigned to it.) When I do get approved, my car might, or might not be, available. And it seems all the dealers in my region are doing this. Yep, I'm a little irritated.

I have an email into two of the dealership's owners. If not resolved to my satisfaction, I'll be calling the CARS hotline.

Dianne, I trust your dealership is not holding deliveries pending approval? Do you know if the law actually prohibits dealers from holding deliveries, or is this only guidance from NHTSA?

Thanks!

[bps]

Dianne,

As always, thank you for the information you provide us every day -- it's awesome! I wish I was closer to California (I'm in Kansas). If I was within a 10 hour drive, I'd drive my clunker out there in a heartbeat and buy a Prius from you. But alas, it's too far and my clunker probably wouldn't make it.

urlyadoptr,

If I were you, I'd show this to your dealer and give them a chance to fix this (and give you your Prius). If they don't, then you need to report them to the CARS hotline. If they don't budge, then they need to be expelled from the program.

Bryan

[cnschult]

dealerships all across this country are struggling so badly that if they asked me to wait a few days for my clunker to be approved by NHTSA I wouldn't mind, even if they are not supposed to.

did anyone notice how when the C.A.R.S. ads first aired, they always said $4500.

but now they say $4500 or $3500, since most people only quality for $3500 (an improvement of 4-9mpg) and very few people actually quality for the $4500 (an improvement of 10+mpg)

[MikeDS]

I'm glad you made this so easy for me Dianne!! Didn't even have to worry about any of it...you're the best!

[urlyadoptr]

Originally Posted by bps

If I were you, I'd show this to your dealer and give them a chance to fix this (and give you your Prius). If they don't, then you need to report them to the CARS hotline. If they don't budge, then they need to be expelled from the program.

I showed the rule from the cars.gov website to the dealer, and the sales manager essentially said they refuse to comply. Last night I emailed the owners, we'll see if I get a response. If not, or if the response is not favorable, I will definitely report them. I was amazed by their arrogance, to insist they have the right to not comply with Federal law because it doesn't suit their interest. They absolutely joined the program voluntarily and agreed to abide by the rules when they did so. I don't think they fully comprehend that they're looking at some HEFTY fines - up to $15,000 per violation. It's a big dealership, so if they have, say, 100 cars they're holding back, that's potentially $1.5M.

Anybody else out there in the same boat?

[mplsman]

Yup. My dealer made me wait a week before giving me the car. At least they wrote the VIN on the sales agreement so they coudn't sell it from under me. However; they actually expected me to write them a check for the amount I owed even though they wouldn't give me the car. I long suspected that they were suppose to give me my car given that my mother in law was able to take her new Honda home. I was very paranoid as they told me to keep my clunker, but they kept the title and proof of insurance. Needless to say I parked that baby until it was time to drive it back to them to get the Prius.

Originally Posted by urlyadoptr

I showed the rule from the cars.gov website to the dealer, and the sales manager essentially said they refuse to comply. Last night I emailed the owners, we'll see if I get a response. If not, or if the response is not favorable, I will definitely report them. I was amazed by their arrogance, to insist they have the right to not comply with Federal law because it doesn't suit their interest. They absolutely joined the program voluntarily and agreed to abide by the rules when they did so. I don't think they fully comprehend that they're looking at some HEFTY fines - up to $15,000 per violation. It's a big dealership, so if they have, say, 100 cars they're holding back, that's potentially $1.5M.

Anybody else out there in the same boat?

[werewolf34]

Thanks Diane! You're a great dealer; I wish more Toyota dealers behaved like you.

[jangell2]

Originally Posted by DianneWhitmire

YOU ASKED. WE LISTENED.

We’ve heard that dealers are asking consumers to sign agreements with contingencies when they participate in the CARS program.
CONSUMERS ARE NOT REQUIRED TO SIGN CONTINGENCY AGREEMENTS TO PAY BACK THE DEALER SHOULD THE CARS CREDIT BE REJECTED.

Unfortunately I found PriusChat after I bought my Prius and I used CARS to the max $4500. The dealer did require (or at least did not tell us it was not required) to sign a contingency agreement saying we'd pay them the money if our deal was rejected by CARS.

My question is now that we've signed the agreement, is it valid? Can the dealer enforce it? I don't expect any problems, but I would be interested in knowing my rights here. It seems to me the dealer violated the CARS program by requiring me to sign the agreement.

As another bit of info, they offered me a 7 year extended warranty for $2K which I declined and a $600 Dent Shield warranty (also declined-I later found out it only fixes small non-paint damaged dents, pretty worthless). I've since seen on this site the extended warranty from Toyota for about $1K.

It is refreshing to see a dealer participating here and being so frank and honest. Sadly, whenever I go into a dealer, I still feel I must assume that the dealer will try to take unfair advantage as they did with me.