NEW YORK According to Cuomo, some advertisements for the rebate are misleading and deceptive and he has officially put them on notice to stop. Today, the office issued a cease-and-desist letter to 40 dealers regarding how they're advertising for program.
The office took action after reviewing a number of advertisements from various car dealerships that omitted significant requirements that had to be met in order for a consumer to be eligible to get the rebate. The A.G.'s office said the ads mislead consumers into believing their trade-in vehicle qualifies for the program when it doesn't, or they're eligible for thousands of dollars in rebates when they are not. The letter orders the dealers to modify the promotions and ads to clearly explain how the program works.
The "Cash for Clunkers" program provides dealerships with money to credit consumers $3,500 or $4,500 for their trade-in clunkers that may be worth a lot more. The intent of the program is to give the economy a boost and to promote clean air by getting consumers to buy more energy efficient vehicles.
"This new federal program not only allows consumers to buy new vehicles that they otherwise might not be able to afford, but creates an enormous incentive for people to choose environmentally-sound, fuel-efficient cars," said Cuomo. "This program could be a boon for both our economy and our environment, as well as provide much-needed financial assistance to consumers. Businesses that fail to advertise honestly and try to take advantage of this federal program will face legal action by my office."
The Attorney General said some advertisements by several auto dealerships aggressively promoted the program without fully disclosing its limitations, while other dealers advertised similarly named "cash for clunker" promotions that have
nothing to do with the federal program. Mr. Cuomo is urging consumers to become familiar with the general requirements of "Cash for Clunkers".
It applies to the purchase or lease of a new vehicle;
The trade-in must be in drivable condition;
The trade-in vehicle's fuel efficiency must not exceed a combined
city/highway fuel economy of 18 mpg;
The trade-in vehicle must have been insured, and registered to the
current owner, for at least one year prior to the trade-in;
If a transaction falls within the CARS program, the amount credited
to the consumer is $3,500 or $4,500 depending on the type of vehicle
being traded in, the type of vehicle being purchased, and how much the
fuel efficiency of the new vehicle exceeds that of the trade-in. For
example, in the case of a passenger vehicle being traded in and a new
passenger vehicle being purchased, if the new vehicle has a combined
fuel efficiency of at least 4 mpg but less than 10 mpg better than the
trade-in vehicle, then the credit is $3,500; if the difference is at
least 10 mpg, then the credit is $4,500.
Dealerships must register with the National Highway Traffic Safety
Administration.
Dealerships that received cease/desist letters, include, by region:
New York Metro: Plaza Hyundai, Ltd.; City World Toyota; City World
Hyundai
Nassau County: Garden City Jeep Chrysler Dodge; Hassel Volvo; Karp
Volvo; Millenium Toyota and Nissan of Garden City
Suffolk County: Competition Toyota; Security Dodge; Town & Country
Jeep; Chrysler Dodge and Atlantic of Bay Shore
Westchester: Smith Cairns Ford, Inc. of White Plains; Central
Avenue Chrysler Jeep Dodge
Poughkeepsie: Healey Chevrolet; Healey Ford; Newburgh Park Motors
Buffalo: Basil Resale Sheridan; Basil Toyota; Cappellino Buick;
Dave Smith Ford; Emerling Chevrolet; Paddock Chevrolet
Rochester: Lessord Chrysler Products; Bob Johnson Chevrolet
Syracuse: Fayetteville Dodge; Royal Nissan-Subaru; Summit Dodge
Binghamton/Southern Tier: Delhi Motor Company, Inc.; Gault Toyota;
Miller Auto Team; Stafford Chevrolet
Utica: Victory Chrysler Dodge Jeep; Cooper Kia; Steet Ponte
Chevrolet; Don's Superstore; Davidson Chevrolet Cadillac Buick Pontiac
GMC of Rome; Carbone Nissan; Carbone Dodge Chrysler Jeep
Plattsburgh: Dannemora Ford; Garvey Hyundai
Consumers may determine if a dealer is registered and get more information by going to www.cars.com or calling 866-CAR-7891. Consumers
may also ascertain mpg ratings of vehicles at fueleconomy.gov
Attorney General Cuomo urges any consumer who believes they are a
victim of fraudulent or deceptive business practices to contact his
office at 800-771-7755.
NEW YORK AND TRI-STATE AREA NEWS
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