• Stan Posted: 9/23/2009 8:49am PDT

    Not a factor in CA (it varies state-by-state); but in NY and other states, sales tax was collected on the cash-for-clunker amount; but is not collected on trade-in values. So, if this happened in NY, the couple would have overpaid by the sales tax on the $3500.

  • sioux falls honda Posted: 9/23/2009 8:10am PDT

    Wow. That's not kosher at all.

  • fb_768069541 avatar fb_768069541 Posted: 9/23/2009 3:28am PDT

    Has anyone thought that maybe the Cash for Clunkers claim may have been denied? If the dealership takes the vehicle in under C4C, and that claim is denied, they obviously don't get the government money, so what other option is there, than to try to sell the vehicle. Afterall, they did give the customer 3500 for it. Now if the vehicle was worth more than 3500, then the people were stupid for trading it in!!!

  • Tom Posted: 9/22/2009 7:05pm PDT

    If these folks traded-in a vehicle worth considerably more than the $3500 CARS allowance, what's to stop the dealer from giving them the $3500 for their trade - it's all they expected from the deal - and then reselling the vehicle in the open market? If the dealer got the $3500 from the government and then re-sold the vehicle that's clearly wrong - but in this case it appears he just took advantage of a chance to profit from his customer's ignorance.