According to Cars.gov, the federal government’s official website for Cash for Clunkers, a dealership must allow you to take possession of the new car before the clunker application is approved by the government. We’ve heard from buyers saying their new car is stuck in Cash for Clunkers limbo at a dealership, some for weeks. If that’s the case, Cars.gov urges you to report the dealership to the National Highway Traffic Safety Administration by calling 866-CAR-7891.
We can’t completely blame the dealerships because there’s been confusion about this program from every front. However, it’s up to the dealership to make sure your clunker and the new vehicle qualify for the correct credit. As for consumer participation, buyers have to sign a document verifying, “under penalty of law that all information you provide is true,” according to Cars.gov. If an application is rejected because of false information a dealership can take action to recoup their money or the vehicle.
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