Cash for Clunkers Consumers "Lost" Scrap Value
Here’s an excerpt from the CARS.GOV website, spotted by one our eagle-eyed readers:
Do I get any money for my trade in vehicle in addition to the CARS credit?
YES. The law requires your trade-in vehicle be destroyed. The dealer must disclose to you the scrap value of your vehicle. The dealer is entitled to keep up to $50 of the scrap value for administrative fees. You are entitled to negotiate about who keeps the remaining scrap value. For example, you may use that money toward the price of your new car separate from the CARS credit.
How many customers received this federally-mandate disclosure from their dealer? Not many, I’d wager. TTAC writer and used car guru Steve Lang reckons the average clunker was worth between $300 and $350 in scrap. So let’s call it $250 per car. Multiply that by the estimated 700,000 crushed clunkers and you’re looking at some $175,000,000 that may have been left on the table. Oops! Our tipster reckons that money should have gone back to taxpayers, anyway. I reckon he’s right.
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