Car Allowance Rebate System (cash for clunkers)
#1
06-29-2009, 04:48 PM
Car Allowance Rebate System (cash for clunkers)
Has anyone looked into this?
It is the government rebate system that says if you trade in a car less than 25yrs old that gets worse than 18mpg combined for a new car the dealership will discount your purchase or lease by either $3500 or $4500 depending on some criteria with the cars. The dealership will then get a full refund from the government within a couple days. This discount is totally separate form anything you negotiate since it is a government program and the dealer is fully reimbursed.
I have been looking into this because I am in the market for a Fit, but I don't own a clunker. I was thinking I could just buy a $800 clunker and trade it in for $4500. That would be nice, but one of the criteria says the car must be insured and registered to the same person for 1 continuous year prior to trade in. HOWEVER, it DOES NOT say, that the person who registered/insured it must be the same person who is buying the new car.
That is where it gets tricky. If I new someone with a clunker, what would stop me from trading in THEIR car (with them there) and splitting the $4500 with them?
The wording of the requirements is a little tricky, I dont know if this would work or not.
Your thoughts?
http://www.cars.gov/flow-chart.html
It is the government rebate system that says if you trade in a car less than 25yrs old that gets worse than 18mpg combined for a new car the dealership will discount your purchase or lease by either $3500 or $4500 depending on some criteria with the cars. The dealership will then get a full refund from the government within a couple days. This discount is totally separate form anything you negotiate since it is a government program and the dealer is fully reimbursed.
I have been looking into this because I am in the market for a Fit, but I don't own a clunker. I was thinking I could just buy a $800 clunker and trade it in for $4500. That would be nice, but one of the criteria says the car must be insured and registered to the same person for 1 continuous year prior to trade in. HOWEVER, it DOES NOT say, that the person who registered/insured it must be the same person who is buying the new car.
That is where it gets tricky. If I new someone with a clunker, what would stop me from trading in THEIR car (with them there) and splitting the $4500 with them?
The wording of the requirements is a little tricky, I dont know if this would work or not.
Your thoughts?
http://www.cars.gov/flow-chart.html
#2
06-29-2009, 04:53 PM
My friend told me about this, you are kind of stone walled unless you have a buddy with shitty cars, then he can just sign one over to you and you can push/pull/tow it in for the discount. I know people that are already scamming this so I'm sure they will be tightening the requirements.
It's almost too good to be true, especially if you get a low bottom line on the new car before the discount. I wouldn't even bring it to the table when negotiating the final price until the last minute.
It doesn't work if it's not in your name and it doesn't work unless you really have owned it for a year.
It's almost too good to be true, especially if you get a low bottom line on the new car before the discount. I wouldn't even bring it to the table when negotiating the final price until the last minute.
It doesn't work if it's not in your name and it doesn't work unless you really have owned it for a year.
#3
06-29-2009, 05:31 PM
My friend told me about this, you are kind of stone walled unless you have a buddy with shitty cars, then he can just sign one over to you and you can push/pull/tow it in for the discount. I know people that are already scamming this so I'm sure they will be tightening the requirements.
It's almost too good to be true, especially if you get a low bottom line on the new car before the discount. I wouldn't even bring it to the table when negotiating the final price until the last minute.
It doesn't work if it's not in your name and it doesn't work unless you really have owned it for a year.
It's almost too good to be true, especially if you get a low bottom line on the new car before the discount. I wouldn't even bring it to the table when negotiating the final price until the last minute.
It doesn't work if it's not in your name and it doesn't work unless you really have owned it for a year.
So which is it? lol. It doesn't make it to clear on the website.
#4
06-29-2009, 06:08 PM
I'm saying that unless you have a clunker in your name for +1 yr then the only way is to have a friend sign it over and literally wait a year. They check for the purchase date and name on the title so its impossible to defraud.
The only immediate way would be to go to a dealer with a spouse who's had the car for a year. My buddy tried with a friends clunker and whether he is there or not that shit didn't fly.
The only immediate way would be to go to a dealer with a spouse who's had the car for a year. My buddy tried with a friends clunker and whether he is there or not that shit didn't fly.
#5
06-29-2009, 07:42 PM
I'm saying that unless you have a clunker in your name for +1 yr then the only way is to have a friend sign it over and literally wait a year. They check for the purchase date and name on the title so its impossible to defraud.
The only immediate way would be to go to a dealer with a spouse who's had the car for a year. My buddy tried with a friends clunker and whether he is there or not that shit didn't fly.
The only immediate way would be to go to a dealer with a spouse who's had the car for a year. My buddy tried with a friends clunker and whether he is there or not that shit didn't fly.
#6
06-30-2009, 10:49 AM
I know, he printed out the day one document and just went probing dealers for info.
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