The Obama Administration is having a hard time convincing the American people why the government should take over our health care system. Look no further than the Clunker Program.
The government runs out of money, the Senate approves an additional $2B, perfectly good used cars are destroyed, most of the dealers have not been paid, used car prices have risen, and now the showrooms are empty however the couple below have their feelings hurt.
Would someone please explain basic Economics and “Profit” to these liberal fools….
OC Register – Posted by Teri Sforza, September 21st, 2009
The sapphire blue 2001 Nissan X-Terra was still in pretty fine shape – but, getting only 17 miles or so a gallon, it had “Cash for Clunkers“ written all over it.
So in August, Dan Hoang and girlfriend Tara Bui gathered up all the paperwork required by “Cash for Clunkers” – registration, title, proof of insurance – and went to Volkswagen of Garden Grove to ditch the gas guzzler and replace it with a more environmentally friendly VW Jetta.
They wanted the clean diesel Jetta – which would have qualified for the maximum $4,500 credit – but alas, the dealer didn’t have any. So they went with the regular model, got a $3,500 credit, and drove away content in the knowledge that the old Nissan would be destroyed, and that they had done their little part to make the planet a better place.
So imagine Hoang and Bui’s surprise when they breezed by the dealership days later, and saw its flashing sign advertising a pre-owned 2001 X-Terra for sale. Current price: $5,995.
Noooooooo. Could it be?
Hoang and Bui did some investigating, and yes, indeed, it was the very same sapphire blue 2001 Nissan X-Terra they had owned and thought was headed for the scrap heap.
“I had come to the dealership specifically because of the cash for clunkers program, but to see that the dealership trying to sell my old car strikes me as some sort of violation of an agreement,” Hoang wrote in a complaint last week to the U.S. Department of Transportation.
“I had brought in my car registration, the car title, and 1 year of auto insurance proof for the clunker, fulfilling my end of the cash for clunkers, the other was for the dealer to sell me a new car and to destroy my old one. One of the major reasons for me to bring the Xterra to the car dealer was due to the program’s requirement that all clunkers were to be destroyed…. If I had known that the dealership was using the car as a trade-in, then I would not have brought the car in, but simply kept the car for another year or two.”
We at The Watchdog contacted VW of Garden Grove to clear this up. There seems to have been a misunderstanding.
“They came in for the cash for clunkers, but we went out and looked at the car and decided it’s a pretty clean car, so we took the car on a trade-in,” said Ken O’Donnell of VW of Garden Grove. “We decided we’re going to give them the $3,500 they would have gotten from the clunker program as the trade-in. We’re not asking the government for any reimbursement.”
Indeed, the feds confirm that the dealership did not seek money for the Nissan under the cash-for-clunkers program. Hoang’s complaint was forwarded to the National Highway Traffic Safety Administration’s Enforcement and Justice Services Division, which told him this by email:
“I certainly appreciate your feelings with respect to the transaction you had purchasing your new car. Because the deal was not submitted to the CARS program for a rebate, we have no jurisdiction. However, you have the option of referring the issue to Attorney General’s office in California, or local authorities for review.”
Hoang and Bui are contemplating doing just that, but don’t expect much to come of it. “I suspect many people are being deceived,” said Bui.
It’s unclear just how often this has happened – but we know of at least one other case of a Ford Explorer heading to a dealership as a clunker, and turning into a trade-in because of incomplete paperwork.
We’ve got calls in to a couple of consumer expert types about the ethics of all this, and will update this when we hear back.
Perhaps the people who wind up buying that X-Terra – and the Explorer – will be upgrading from their semis?
Related Previous Post:
Boston Globe: Car showrooms quiet after clunkers clamor ends