The recent passage of the "Cash For Clunkers" bill has sparked a nationwide wave of interest in the program, which provides up to $4,500 to car-owners who trade in their old "clunker" for a new, more fuel efficient alternative. However, the flood of enthusiasm for the program has led to the emergence of scams targeting car owners looking to benefit from the program. CashForClunkersInformation.org, a consumer information site that has educated the public about the new program since its inception, has issued a warning to consumers and is providing specific instructions on how to avoid scams on their Web sites.
Because the C.A.R.S. legislation was fast tracked as a part of the war supplemental bill there was not a lot of information available to the public. As a result, a few information sites provided important information that encouraged the public to support the bill. As thousands of these online visitors already know, their support of this legislation is a big reason this bill was signed into law. This is a perfect example of the public using the Internet to have a collective voice to influence government policy. Unfortunately, some other Web sites emerged online and apparently used this tool to attempt to fraudulently capture personal information to be used illegally.
While there are a lot of legitimate sites that have been around well before the bill was signed into law, consumers are being advised to be wary of any site that says you have to "register" to participate in the program, or asks you for any personal financial information. Some consumer information sites will offer a service that allows consumers to get price quotes or pre-approved financing from dealers so they can avoid wasting gas money driving around town. Sites offering such services should have a clearly defined privacy policy and visitor agreement (located at bottom of site) that assures consumers that their contact information will remain private and secure.
However, the group is cautioning consumers, if any Web sites ask for your personal information to "register" you or to "issue a voucher," do not give any information to them because NHTSA reminds consumers, "You do not need a voucher and you are not required to sign up or enroll in this program. Participating new car dealers will apply a credit, reducing the price you pay at the time of your purchase or lease, provided the vehicle you buy or lease and the vehicle you trade in meet the program requirements. The dealer will then obtain reimbursement from the government." For this reason, www.cashforclunkersinformation.org is connecting consumers directly with licensed new car dealers so they can follow the process the NHTSA is establishing with licensed dealers. To protect our visitors we will continue to report on any online scams on the home page of our website.
New Government Web site
Prospective car-buyers can qualify their cars at the www.cars.gov Web site, which is the only official government portal to the program. Once qualified, car buyers need only visit a participating dealer to purchase a voucher-eligible vehicle. The dealer will handle all official government documentation to secure and deliver the appropriate funds towards the purchase of the vehicle for the car buyer. The website provides detailed information about the bill and simple steps you can take to determine if you qualify and for how much. Since the program has just been signed into law by Obama the NHTSA has 30 days to post final details of the program on their website. The NHTSA is encouraging consumers and retailers to wait for them to release the final rules on or around July 23rd. If you qualify we encourage you to visit their site and click on "Sign up for Updates" to give your personal information so you can receive program information as it's released. As stated before, this website is ok to provide "personal information" because it is secure and protected by their privacy policy and visitor agreements.
Also, here is a list of non-government independent consumer Web sites that provide consumers with information about this program and who can connect consumers with dealers, according to the organization:
