BEWARE of CASH for Junkers SCAMS!
1996 CHEVY Corsica
It never ceases to amaze me how someone can ruin a good thing. Here our government has created yet another form of automaker stimulus in the form of CASH for CLUNKERS. CARS, as it is properly called, is designed to get old, gas guzzling cars off the road in favor of more fuel efficient vehicles. It doesn’t hurt the economy that you have to buy a NEW car or truck, suv or van, to get the $3500-$4500 rebate.
HOWEVER, in less time than it takes to say, “START YOUR ENGINES!” along comes a dealership using the CARS: CASH for JUNKERS program to RIP-OFF the public.
Read below the inquiry I received just days ago, and my response…
John asks, “Question on auto sales tax in NJ. We just signed a sales contract based on cash for clunkers in NJ and found that the dealer wrote the contract and estimated (charged us) taxes based upon the MSRP and not the sales price agreed upon or using the cash for clunkers trade in of $4500. The red sales sticker price on the 2009 car was $15,300 not 18300 etc but 7% was charged on $18300. Should not the tax have been charged on the actual sales price of $10,555 rather than the msrp that was never even discussed?
Will buyers be required to pay taxes on the $4500 cash for clunkers trade in to state taxing authorities? Looks like NJ auto dealer we purchased from taxed us as the tax was figured on MSRP?”
MYCARLADY answers:- “You ARE NOT subject to federal income tax on the CARS rebate. Having a trade-in of $4500.00 should give you some sales tax credit in most states. The dealership “estimating” sales tax on the rebate is pulling a SCAMto get more profit by adding the “estimated tax” to the selling price. Futhermore, MSRP has NOTHING TO DO with it. Selling Price is the NEGOTIATED Price.
I think dealerships advertising the CARS program and telling consumers they are getting the $4500.00 from the government program NOW, are setting themselves up to be banned from authorization, as consumers need to COMPLAIN to the www.cars.gov, their local DMV or Attorney General dealer licensing division, about the specific dealerships and their tactics. This should NEVER have happened.–slm
If you or someone you know has experienced this type of B.S. email me the name of the dealership and the consumer and I will forward it to the appropriate authorities!
READ MORE HERE ABOUT CASH for CLUNKERS.
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Sarah Lee is an automotive executive with 20+ years of experience. She writes about Cars, and is a staunch consumer advocate on car related subjects. Her company: MY CARLADY is a car buyer’s service committed to getting you the best deal on your next new or pre-owned vehicle. You can reach her at www.mycarlady.com
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