New Car bought through Cash for clunkers

[Sheri7138]

What is the name of your state (only U.S. law)? Colorado

My 86 year-old Dad bought a new car through the Cash for clunkers program. (My Mom just passed away on July 2nd and He also had significant funeral expenses, so could not have afforded to get the car without the cash for clunkers deal. The old car has been costing him a lot for repairs.)

At the time of the transaction the dealer assured him that his car, a 1991 Oldsmobile Eighty-eight qualified. Dad bought the car with the cash-for-clunkers discount from them on July 25 and paid in full. The dealer cashed the check on July 27. On August 10, yesterday the dealer called to tell my Dad that his car did not qualify so they would not give him the title he needs for licensing, unless he pays the difference of the discount.

If the deal was completed in good faith on my Dad's part, is he in any way responsible for the fact that the dealer did not check into the qualification and sold him the car, a done deal, with the cash-for-clunkers discount? Is my Dad in any way obliged to pay more to get the title? Is there another way, like my brother suggested to me, to get the title with just the deed of sale and fulfilling the Colordo requirements, without relying on the dealer to do it? Can the dealer put a lein on a paid for vehicle?

Thank you for any information you can give me.

 

[dad43]

i don't know what answers you will get here. the one i have is not a legal, so much as an FYI...

i had no idea about this credit, but i read on aol, that some dealerships were more or less having to "suck it up" if they made deals before the qualifications were revised. meaning, if a car originally qualified, but was then cut from the list, the dealer was left holding the stick so to say, b/c they proceeded on their own accord, on limited knowledge...from what i read, it was more along the lines of, "if the dealership was dumb enough to buy/sell a car w/o reading the revised qualifications then the dealership was more or less at fault, and just stuck". i paraphrased, of course. i don't know who you'd have to contact, maybe another dealership? or the fair trade comission?(the FTC is probably wrong, but it might be correct).

 

[justalayman]

did the sales agreement state anything such as:

total price contingent upon customers vehicle being acceptable under the cash for cars program

or any other such disclaimer that would allow them an out?

 

[Sheri7138]

Response to question

did the sales agreement state anything such as:

total price contingent upon customers vehicle being acceptable under the cash for cars program

or any other such disclaimer that would allow them an out?

No! there is nothing in the sales agreement that the dealer can refer to. They just keep trying to convince my Dad that, since the car does not qualify as a clunker, it is now his problem to pay, after the fact, not theirs. But the transaction was complete.

 

[justalayman]

I hesitate to say they have no recourse because not having all the germane paperwork and information but unless the sales contract stated something as I had suggested previously, I find it difficult they can now come back and claim they were in error and your father has to pay more because of their error.

the problem is: what do you do now?

You have no way to obtain the title unless the dealership transfers it or you end up in court and the court mandates the transfer.

I honestly do not know who to contact concerning problems with the program as it is so new there is very little info I can find. You might try contacting the folks listed below or your states attorney general office and inquire there.

http://www.cars.gov/images/sponsors.gif

 

[Country Living]

The program moved some cars in and some cars out of the clunker program around July 24th. It's possible Dad's car qualified one day and didn't qualify the next day.

Here's the hotline for the CARS program: (866) CAR-7861.

 

[BL]

I believe another poster had some good luck over the cash for clunkers deal by contacting their local Office of Attorney General - Consumer Affairs .

As was previously stated ,they moved some vehicles in/out of the programs cash for clunkers qualifications.

But if the dealer was ignorant of that fact on your Dad's vehicle ,I agree ,I have heard - maybe from another post on the forum ,the dealer has to suck up the cost.

Contact your local OAG.

Here's the link to the other post.

https://forum.freeadvice.com/consumer-contracts-guarantees-warranties-22/clunker-deal-478139.html

Here's a couple a link of calculators .I haven't looked at them to see if there's anything in there about your issue .

Http://tinyurl.com/mmauxp and http://tinyurl.com/kvzbk9 .

 

[xylene]

I sympathize with your dad's situation - BUT

Your dad's inability to afford the vehicle without the Clunker Cash does not prove he was ripped off or form a basis for not paying the difference if he is required to.

Consult a lawyer.

 

[tranquility]

But, it *may* allow for recission and for him to get his old car back in the condition it was when he turned it in. (Although it will probably be a different car if it was "killed" to government specs.)

Let's face it. No one really knows here. The facts on the ground are very important in the first place and the legal issues have not been litigated in the second. I'd sue on a promissory estoppel theory as well as a breach of contract theory.

I believe a car owner can reasonably rely on the representation of an auto dealer the car is in the program (and funded). If he then does rely and that reliance causes damages...

 

[Country Living]

According to CNN, as soon as a car is turned in as a clunker the dealership immediately puts gunk in the engine that freezes it. Dad may not have been able to get his car back even if it was later that day.

IMO, the dealership is responsible for verifying the eligibility of the trade-in. If that was done correctly and all the paperwork was completed in a timely manner, and Dad got caught up in the July 24th eligibility change, then the dealership should be arguing with the CARS program folks.