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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

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