Despite, or because of, the assured availability of the “Cash for Clunkers” rebate money, consumers should be careful that they do not fall into traps set by scammers – that pretend to be dealers – trying to steal their identity.
According to the Better Business Bureau (BBB), only dealers registered with the federal government participate in the program.
And at no point do consumers need to register or receive a voucher because the dealership will handle all the appropriate paperwork.
“Not only were some consumers quick to take advantage of the new program, but scammers didn’t waste any time either,” said Claire Rosenzweig, president and chief executive officer of the BBB serving metropolitan New York.
“Because the program is new, identity thieves know that they can cull sensitive personal information from consumers while looking like they are actually trying to offer assistance to participate in the program,” Rosenzweig said.
According to the BBB, even before the legislation passed, the National Highway Traffic Safety Administration (NHTSA) reported that web sites were soliciting information like names, addresses and social security numbers in order to register people for the program. Some BBB offices have heard that consumers received phone call about help filling out paperwork.
Patricia Swift-Oladeinde, a spokesperson for the NHTSA, also suggests that if consumers feel that a dealer, whether registered or not, might be taking advantage of them they should leave that dealership and contact their State Attorney General.
To avoid becoming a victim, follow this advice:
• You do not need to register or receive a voucher to participate in the program; it is the responsibility of the dealership to fill out all appropriate paperwork.
• Not all dealers are participating in the program. Participating dealers must register with the federal government. Check www.cars.gov to learn which ones.
• 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 new vehicle must be priced less than $45,000 and passenger vehicles must have a combined fuel economy value of at least 22 miles per gallon.
• The amount of the credit is $3,500 or $4,500 depending upon the difference between the combined fuel economy of the vehicle that is traded in and that of the new vehicle. The credit will be applied toward the cost of the new car.
• Trade-ins that qualify must be no older that 25 years and have a combined city/highway fuel economy of 18 miles per gallon or less at the time it was originally purchased. Visit www.fueleconomy.gov to learn the fuel economy of specific vehicles.
• The trade-in vehicle must have been continuously insured, in accordance with State law, and registered in the same owner’s name for the one-year period immediately prior to the trade-in.
Consult the official website for the CARS program at www.cars.gov for more information. Consumers can also call the CARS Hotline at 866-CAR-7891 or TTY at 800-424-9153. For more advice on purchasing and maintaining an automobile, visit www.bbb.org.
