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Just How Many Cheated? Feds Start Cash For Clunkers Dealer Audit

Agent009 submitted on 9/2/2009 Official Bell & Ross Timestamp: 4:34:53 PM

10 user comments | Category: Misc News | Source: www.autospies.com

The federal government is starting to make random, unannounced visits to dealerships to audit their compliance with the cash-for-clunkers rules, dealer associations said.

The Transportation Department auditors' focus is on possible fraud in the disposal of trade-in vehicles, said National Automobile Dealers Association spokesman Bailey Wood.

The $3 billion cash-for-clunkers program had detailed requirements aimed at ensuring that the engines of trade-ins were destroyed rather than resold.


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Just How Many Cheated? Feds Start Cash For Clunkers Dealer Audit

About the Author

Agent009

"If everything seems under control, you're just not going fast enough."

— Agent009 (View Profile)


User Comments

Invisible

Cheat?
Surely Jesus Obama's plan to give hands full of cash to customers was fool proof!

— Invisible (View Profile)

Posted on 9/2/2009 5:00:53 PM | reply to this comment | Votes: 1   

SP2Hybrid

Spend $10 of my money to provide a $1 benefit to somebody else.
Kinda like any other government program, no?

— SP2Hybrid (View Profile)

Posted on 9/2/2009 5:41:14 PM | reply to this comment | Votes: 4   

lexusrox123

absolutely, either that or they take it altogether.

— lexusrox123 (View Profile)

Posted on 9/2/2009 8:31:49 PM | | Votes: 1   

quizz

But if the government is giving it away, why not get in line right? Why let somebody else collect my HARD EARNED TAX DOLLARS!!!

Needless to say I made my father-in-law trade in his beater for an 09 4-cyl. Camry in the first week of the clunker program ($17,000 out the door, fully loaded). He can drive this thing for the next 15 years.

— quizz (View Profile)

Posted on 9/2/2009 6:36:02 PM | reply to this comment | Votes: 1   

sdcarguy

12,000 miles/year / 10 miles/gallon x 15 years x $3/gallon = $54,000 saved.

— sdcarguy (View Profile)

Posted on 9/2/2009 7:08:43 PM | | Votes: 1   

cdoke

Your analysis is faulty for two reasons: 1) It is a nominal analysis and as such does not include the necessary consideration of time value of money. Your nominal $54,000 is actually only only $35,000 in real money at a 5.8% combination of inflation and opporitunity rate. 2) It assumes that money is completely free. It isn't- most (although not all) of those who engaged in C4C increased their debt load (consequence of older cars for newer cars). There is a minimum amount of time that somone will have to keep the car for the increased fuel mileage to pay off the increased debt load. The actual time to payout is contingent upon manifold things.

— cdoke (View Profile)

Posted on 9/3/2009 11:58:17 AM | | Votes: 2   

sdcarguy

$54K is by definition NPV since I used current year gas pricing over 15 years isn't it? Actual gas money saved would be much more considering inflation over the next 15 years no? Also don't forget sales tax deduction this year for car purchase and savings in maintenance and repair?

— sdcarguy (View Profile)

Posted on 9/3/2009 4:00:28 PM | | Votes: 1   

cdoke

Not quite, but it is an entirely fair point to to say that the gas price needs escalated in order for it to represent reality. In that case, the value of the answer depends upon the relationship of the values of your investment rate, the escalation rate, and the inflation rate.

All of that misses the point, however, as the benefits cannot be removed from the costs and there are issues over such a time period related to upkeep fo the vehicle. Admitedly people generally don't keep their cars for 15 years, and it is not necessarily the case that the same MPG advantage exists for the person who purchases it from the first owner. The problem resets at that point.

— cdoke (View Profile)

Posted on 9/3/2009 5:13:52 PM | | Votes: 2   

Whelan

WooHoo! More stalling so people won't get paid. It's hysterical at this point what this man is doing to our country.

U.S.S.A.

— Whelan (View Profile)

Posted on 9/3/2009 10:01:08 AM | reply to this comment | Votes: -2   

pennfootball

JaWohl Da People's car!! Woops that was Nazi Germany...and everyon in the CARS program bought foreign cars!!! With my hard earned tax dollars. I am so happy for Sista Shaquifa, Shannaynay and Jose Cornhuilo Taco Nacho!

— pennfootball (View Profile)

Posted on 9/3/2009 12:11:27 PM | reply to this comment | Votes: -3   

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