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If you were wrongly denied we want to hear from you: clunkededmunds.com
#1 of 32 Were you wrongly denied your CARS (ie, Cash for Clunkers) rebate?
by Karen@Edmunds HOST
Aug 25, 2009 (3:46 pm)
Edmunds.com will be approaching the National Highway Traffic Safety Administration (NHTSA) on behalf of consumers whose clunkers applications were rejected for reasons outside the spirit of the qualifications. For example, if someone had a name change, or traded in a clunker before the mileage refresh was announced, or was otherwise surprised by a rejection and is now struggling with their dealer resolve the situation.
If you have a story to share, please email us at clunkededmunds.com
#2 of 32 Re: Were you wrongly denied your CARS (ie, Cash for Clunkers) rebate? [Kare
Aug 27, 2009 (4:54 am)
I was denied -- this is a great story.
My girlfriend of 7 years successfully traded in her clunker and purchased a new car. Her clunker was titled and registered exclusively to her. However, she wanted to have my name on the title of her new car so that I could deal with estate issues should that become necessary. So she recorded my name as a co-owner of the new car at the time of purchase.
A week later, when I attempted to trade in my clunker, my application was rejected by the CARS computer system due to my name being recorded as having already participated in the program.
One simple change would have avoided the rejection -- if girlfriend had NOT put my name on the title of her new car as a co-owner.
The irony is that the clunker I wanted to trade in had been purchased many years ago by my son when he was too young to legally purchase a car. It was "actually" his car, just titled and registered to me.
This was very sad for him and his girlfriend. The three of us had driven his clunker many miles to dealership, had negotiated and finalized the deal, purchased the new car, left the dealership with new car, and had just sat down and ordered at a nice restaurant to celebrate when we received the call from dealership saying "hold on, there's a problem with your CARS application". We had to return the new car that minutes earlier had been ours -- or so we thought.
#3 of 32 denied 3 weeks later after bought car
Aug 27, 2009 (11:07 am)
Purchased car 3 weeks ago, got 3500 cash for clunker, dealer called monday said
govt denied car. Reason my registration expired for 2 months. Daugher had car a school, recieved no registration in the mail, went to illinois license dept to get my registration had to pay 50 late fee for registration. owned car for over 4 years.
Think this is happening alot.
#4 of 32 dealer failed to process the application 4 weeks after bought the car
Aug 29, 2009 (1:12 pm)
Bought a new car 4 weeks ago under cash for clunker program and got $4500 deduction from purchase price. Gave dealership all documents they needed (whatever they asked for) - proof of year long insurance, year long DMV registration card, pink letter (lien release paper from bank). Signed all paper which included release of liability of my old car, DMV papers, purchase contract. Particularly asked dealer before I left dealership if they got all needed documentations for cash for clunker program. They said yes.
Got several phone calls from dealership this week said that I provided them incomplete documentation. Therefore, they can not process my transaction under cash for clunker program so they will need to estimate my car as trade-in (of course they gave me low price). I found out they failed to get DMV certificate of title for my old car by using pink letter from bank before the clunker for cash expired on 8/24 (however dealership said they will handle the paper work before I drove away the new car).
The points are:
1. Dealership is responsible to collect all needed documents for cash for clunker before allowing customer drove away the new car. Most of customers do not know what type of documentation will be needed for the claim.
2. Dealership failed to use pink letter to got DMV certificate of title before 8/24. They have at least 3 weeks to get it done but they failed to process it.
3. Both of my old car transaction and new car transaction had been completed and I had nothing to do with dealership any more.
4. I would not purchase new car if my car were not qualified for cash for clunker in the first place and will still dive my old car till it die.
Not quite sure what is next step in this situation - may be legal action. Too sad, It is bad experience.
#5 of 32 Re: dealer failed to process the application 4 weeks after bought the car [niteknight]
Aug 29, 2009 (5:06 pm)
I don't see what the big deal is. Surely they submitted it knowing they were short documentation. Now all they need to do is get the title and resubmit it.
#6 of 32 Re: Were you wrongly denied your CARS (ie, Cash for Clunkers) rebate? [KarenS]
Aug 31, 2009 (1:47 pm)
Found out today that my application for the program was denied - even though I met all of the qualifications - continuous insurance, continuous registration, clear title etc. My application went in on August 1st and found out today (Aug 31st) that it was denied.
It was rejected because there were 2 other applications in the system for the same vehicle. There had been two other deals on the car before I purchased it that fell through because the people weren't able to produce all of the necessary documentation (the dealer had shared this). The dealer said that they weren't able to cancel those applications but once they were rejected - which they were certain they would be, mine would go through. Mine came back denined on Saturday because there was already an application submitted for the vehicle - one of the deals prior to mine on 8/1.
I called the 800# on the cars.gov website and talked to a customer service rep - when I explained what had happened she said that even though the 2 previous deals were rejected they would still be in the system and needed to be cancelled for mine to go through - she gave me a phone number for a group that would help the dealer walk through how to do this - I've passed this info onto the dealer but am not optimistic that anything will come of this.
The dealer attempted to save the deal but only offered minium blue book for my trade in - the only reason I was considering a new vehicle was because of the program and the $4500 rebate. Without it, the deal didn't make financial sense. Very disappointing - because this took an entire month to play out, I've missed any opportunity to go somewhere else to take advantage of the program.
#7 of 32 Re: Were you wrongly denied your CARS (ie, Cash for Clunkers) rebate? [shelleem]
Aug 31, 2009 (5:36 pm)
All of these BS reasons are killin me. If I called every customer who had the claim denined I would be on the phone all day. The first 37 we submitted got rejected. We are just fixing them. Its not that hard. All your dealer has to do is cxl the sale in the supplier payment system and resubmit your claim.
BTW, the money is starting to flow now. We are getting approvals everyday.
#8 of 32 Re: Were you wrongly denied your CARS (ie, Cash for Clunkers) rebate? [joel0622]
by Kirstie@Edmunds HOST
Sep 01, 2009 (7:57 am)
Yes, joel - the reasons some of these were denied DO seem like BS, and outside the intended spirit of the program. I'm glad you noticed. We asked people to post their experiences here in order that we might provide some help.
#9 of 32 Registration Lapse
Sep 01, 2009 (9:45 am)
I was denied for similar reasons. I owned my vehicle for over 4 years. When the registration expired in December, I didn't get the notice due to a change in address. I re-registered in Februray, paid a late RENEWAL fee and went on my way, but the lapse in registration caused the deal to fall through. My deal was signed the weekend before C4C was set to end, so there was no time to go to DMV and get it fixed, if I could.
Sep 02, 2009 (8:46 am)
So, if the dealership poured the motor destroying goo in the engine before the deal was finalized, how will the compensate the original owner if they have to return the new vehicle?