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Were you wrongly denied your CARS (i.e., Cash for Clunkers) rebate?

32 messages,  Last post on Mar 22, 2010 at 12:25 PM

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If you were wrongly denied we want to hear from you: clunkededmunds.com

Messages Page 2 of 4

#3 of 32 denied 3 weeks later after bought car by dgissel_98

Aug 27, 2009 (12:07 pm)

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 by niteknight

Aug 29, 2009 (2:12 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] by joel0622

Aug 29, 2009 (6:06 pm)

Replying to: niteknight (Aug 29, 2009 2:12 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] by shelleem

Aug 31, 2009 (2:47 pm)

Replying to: KarenS (Aug 25, 2009 4:46 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] by joel0622

Aug 31, 2009 (6:36 pm)

Replying to: shelleem (Aug 31, 2009 2:47 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_h HOST

Sep 01, 2009 (8:57 am)

Replying to: joel0622 (Aug 31, 2009 6:36 pm)
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 by troybataille

Sep 01, 2009 (10:45 am)

Replying to: dgissel_98 (Aug 27, 2009 12:07 pm)
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.

#10 of 32 rejected by blueiedgod

Sep 02, 2009 (9:46 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?

#11 of 32 Re: Registration Lapse [troybataille] by joel0622

Sep 02, 2009 (10:00 am)

Replying to: troybataille (Sep 01, 2009 10:45 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
 
All the program calls for is proof of registration for a year, there are some ways around your proplem. If the dealer reads the check sheet it say "Proof of vehichle registration for one year. It then goes on to say that if you don't have a full years proof then a copy of a CURRENT registration and a copy of the title showing over one years ownership or a copy of a carfax showing a matching title # older then one year."
 
The reason for this is that not everyone saves there old registrations. When one expires you throw it away and put the new one in your glove box. Here in TN Registrations are good for a year and I would say that 70% of my claims did not have the old registration showing a one year track record..
 
Where you may run into problems though is that they have already submitted it with the lapse in registration. If you go by the letter of the law you don't qualify. If they would have submitted it like I said earlier it never would have been questioned.

#12 of 32 Re: dealer failed to process the application 4 weeks after bought the car [joel0622] by niteknight

Sep 02, 2009 (7:41 pm)

Replying to: joel0622 (Aug 29, 2009 6:06 pm)
I called my lawyer in CA. My laywer told me that if the dealer did not get reimbursement from governmnet then it is still a conditional sale and consumer still need to go back to deal with dealer. Either resent the deal or come out some solutions with delaer.
 
Plus, the dealer told me that $4500 C4C is taxable income.

Messages Page 2 of 4

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