Your customers may be interested in the following information should they pursue the "cash for clunkers" deal marketed by the government and car dealers. Hidden amongst the pile of paperwork a buyer is quickly urged to sign without reading is a form that I am still wondering whether or not it is a government form or a dealer form. I suspect a dealer form. The dealer informed me that this form is required by the government but like the many questionable things that came out of their mouths, I suspect it is a dealer form designed to completely protect the dealer and not the buyer. I did not sign this form as the dealer would not guarantee my traded clunker (which was a very usable vehicle and had a value of about $4500) would be available again should the government for whatever reason (ANY REASON) deem my trade invalid. As you can read for yourself, by signing this form, the buyer agrees to pay the dealer $3500/$4500 within 10 days and only accept salvage fee for payment of their trade (usually $50) in the event the government chooses not to pay the dealer reimbursement for the cars/clunker deal. To me, this form is going to "catch" a lot of people that go ahead and sign deals with dealers and then find out the government money has run out and they end the program without reimbursing dealers for deals made. I have attached a copy of the form - I had to scan this form with minimal scanning software. If you can't read it let me know. For some reason, my software would not scan this into microsoft word to allow it to be a text document.
The local dealers are also padding the tax, title and tags fees with their own "processing fee." This is a bogus fee of $100 or more they throw in at the last minute of financing in a one lump package with tax, title and tags.
Please share with your readers that they can save themselves a lot of angst in the car buying process by doing a few minutes of research on the internet at Edmunds.com to find dealer invoice prices and manufacturer incentives and rebates. All rebates, incentives, manufacturer marketing support - new term for dealer incentive are intended by the manufacturer to come off of the invoice price, not the sticker price. Edmunds also lists TMV pricing to show what other people in your buying area are currently paying for invoice pricing (interesting how invoice prices fluctuate!).
Also, another tidbit of hard learned information. Suggest to your readers that they negotiate any accessories for their vehicle including a 3rd or 4th ignition and door lock key before they sign any paperwork. Dealer pricing on key fobs and programming fees run over $300 per key if you wait until after the deal is signed. However, with a little research and savvy, you can pay a local car locksmith for the same service at about $100. You can do even cheaper yourself by obtaining a blank transponder key (not a key fob), obtaining a service bulletin for your vehicle under the title "keyless entry system" (internet search), having the key cut by a locksmith for about $5-$10, use the service bulletin directions to program your new key yourself and whala, you save a bundle. To program yourself, you initially need to have 2 programmed keys before you can program a 3rd key yourself.
Hope this is helpful.
AVN
Just go and buy a used car you will save even more money than this deal. 4500 you lose that in the first year.
ReplyDeleteBecause of the time it takes for the dealer to upload all the forms associated with a vehicle sale made through the Cash for Clunkers program, as well as the time it takes for the government's subcontractors to approve or deny the sale, this addendum was prepared to protect the dealers. Because of the huge success of the program and its limited funds, and the fact it can take up to five hours simply for the dealer to prepare and upload all the paperwork associated with a sale, dealers were concerned that the program's funds would be exhausted before the paperwork from one of their sales made it to the approving authority. In the event they received a reply back that funds were no longer available, this addendum allowed them to come after the buyer for either the $3,500 or $4,500, and to cover their asses in the event the traded clunker had been disabled (as is required by the program)and scraped.
ReplyDeleteIf the government can't even run a trade-in vehicle program, what in the hell makes anyone think they'll be able to run a national health insurance program? America, please get real!
Just keeps on coming doesnt it.
ReplyDeleteSomething for nothing eventually leaves someone holding the bag! While I think the concept was initially a thoughtful intent, the outcome is going to hurt someone. At the rate this program took off, us taxpayers are yet again being screwed. If the dealers aren't prudent and thorough with their end, they be left holding the bag. On the same note, if the customer has done their research and their part, they may get a sweet deal for a POS trade. However, like any kind of govt cheese, the money has to come from somewhere...now where did I put that money tree??
ReplyDeleteu lose that 4500 when u drive it off the lot. there's a reason people drive clunkers. they either love them or they can't afford a new one. isn't this just like the mortgage business. why would anyone go BORROW more money they can't afford?
ReplyDeleteit's not like you get to pocket any money.