Cash For Clunkers draws scammers

The Car Allowance Rebate System — also known as Cash For Clunkers — is a $1 billion government program which gives people $3,500 to $4,500 discounts when they trade in old vehicles and purchase or lease new, more fuel-efficient vehicles from participating dealers. The program is so popular that government funds are almost depleted causing lawmakers to scramble for solutions to keep it going.

Cash for Clunkers has several requirements your current vehicle must meet to be eligible. It must have been manufactured fewer than 25 years before the date you trade it in with a combined city/highway fuel economy of 18 miles per gallon or less. The vehicle also should be in drivable condition and continuously insured and registered to the same owner for the full year preceding the trade-in.

Keep in mind, not all dealers are participating in the program and not all new vehicles qualify for the credit. New vehicles must be less than $45,000 and passenger vehicles must have a combined fuel economy value of at least 22 miles per gallon.

While the CARS program offers great incentives for prospective car buyers, it’s given con artists another opportunity to scam the unsuspecting.

If you’re interested in the CARS program, the Better Business Bureau advises you to:

• Visit www.cars.gov or call (866) CAR-7891 to determine if you qualify for the program and locate participating dealers. Visit www.fueleconomy.gov to learn the fuel economy of specific vehicles.

• Check out participating auto dealers with the BBB. Visit www.bbb.org or call (937) 222-5825 or (800) 776-5301.

• If your vehicle’s current value exceeds $4,500, consider selling or a normal trade-in.

• Take the title, registration and insurance papers showing continuous registration and insurance coverage for the past full year to the dealership.

John North is president and CEO of the Better Business Bureau.

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