Cash for Clunkers

[mirak]

I'm replacing my 98 Mustang with a Ford Fusion Hybrid.

 

Sadly, even though I'm upgrading from a combined 21mpg to 39mpg, that doesn't get me squat from the Cash for Clunkers program.

 

It's clear that the law doesn't allow you to trade-in a junkyard car that's already off the road. The car has to be registered and insured for the full year immediately before trade-in.

 

The hot topic is whether you can buy a cheap car on craigslist and trade that in for the rebate. I don't think the law is 100% clear on this point, but I think it's pretty clear that the answer is no.

 

Quoting the law, to be an eligible trade-in, the car:

( A ) is in drivable condition;

( B ) has been continuously insured consistent with the applicable State law and registered to the same owner for a period of not less than 1 year immediately prior to such trade-in;

( C ) was manufactured less than 25 years before the date of the trade-in; and

( D ) in the case of an automobile, has a combined fuel economy value of 18 miles per gallon or less.

 

A, C, and D are easy. It's B that's the snag. I've heard it argued that the car doesn't have to be registered in the name of the person trading it in - it just has to have been registered to the same person for a year prior to trade-in.

 

I don't think a dealer (they're the ones that bear the risk of not being reimbursed by Uncle Sam) will buy that. The problem are the words "same owner" and "immediately prior to such trade-in." Clearly, the intention is to prevent people from doing exactly what I propose.

 

If the intent was simply to prevent people from trading in cars that were already off the road - say, in junk yard - then why would it matter that the car be continuously registered to one owner for a period of a year? The law could have just said "continuously registered and insured" - no matter how many different owners - and accomplished that. The only purpose I can see of the "same owner" language is that the person trading in the vehicle must have been the owner of the car for the last year.

 

Agree? Disagree?

Edited July 13, 2009 by mirak

[bbf2530]

I'm replacing my 98 Mustang with a Ford Fusion Hybrid.

 

Sadly, even though I'm upgrading from a combined 21mpg to 39mpg, that doesn't get me squat from the Cash for Clunkers program.

 

It's clear that the law doesn't allow you to trade-in a junkyard car that's already off the road. The car has to be registered and insured for the full year immediately before trade-in.

 

The hot topic is whether you can buy a cheap car on craigslist and trade that in for the rebate. I don't think the law is 100% clear on this point, but I think it's pretty clear that the answer is no.

 

Quoting the law, to be an eligible trade-in, the car:

( A ) is in drivable condition;

( B ) has been continuously insured consistent with the applicable State law and registered to the same owner for a period of not less than 1 year immediately prior to such trade-in;

( C ) was manufactured less than 25 years before the date of the trade-in; and

( D ) in the case of an automobile, has a combined fuel economy value of 18 miles per gallon or less.

 

A, C, and D are easy. It's B that's the snag. I've heard it argued that the car doesn't have to be registered in the name of the person trading it in - it just has to have been registered to the same person for a year prior to trade-in.

 

I don't think a dealer (they're the ones that bear the risk of not being reimbursed by Uncle Sam) will buy that. The problem are the words "same owner" and "immediately prior to such trade-in." Clearly, the intention is to prevent people from doing exactly what I propose.

 

If the intent was simply to prevent people from trading in cars that were already off the road - say, in junk yard - then why would it matter that the car be continuously registered to one owner for a period of a year? The law could have just said "continuously registered and insured" - no matter how many different owners - and accomplished that. The only purpose I can see of the "same owner" language is that the person trading in the vehicle must have been the owner of the car for the last year.

 

Agree? Disagree?

 

Hi mirak. :D The Cash for Clunkers rules are plain and simple: The "clunker" being traded-in must have been registered insured, etc etc etc in the name of the individual purchasing the new vehicle. Does not matter how anyone tries to parse the words or spin it otherwise, the Dealer will not be reimbursed.

 

Hypothetically, might someone be able to slip one by an unwitting Dealer? Sure, possibly. Maybe even hypothetically slip one by with forged/faked paperwork? Maybe, but figure in the price of up to a $15,000 fine and possible jail time along with it, since you can be sure that you will likely be hauled into court by the same Dealer (or the Government, since they will jump on the chance to make public examples of law breakers) when they catch on. And they have Lawyers on retainer, most private citizens don't.

 

Good luck. :beerchug:

Edited July 13, 2009 by bbf2530