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Possible clunker program gottcha
08-01-2009, 03:17 PM
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#1
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Recycles dryer sheets
Join Date: Mar 2007
Posts: 236
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Possible clunker program gottcha
Well.... I couldn't resist trading in my clunker for something that achieves better gas mileage - just what Uncle Sam wants me to do.
So after reading all the requirements, gathering my documentation (title, insurance coverage, etc), we pick out a new car and begin the painful process of price bickering and completing mountains of paperwork.
We get to the requirement of proving that the car has been continually insured for the past full year. Hell, I've had the car for 10 years, and it's been insured without lapse for the entire time - and I have my insurance polices in my hand. The dealer rep says, "that's not good enough. Uncle Sam needs an insurance document called a Letter of Experience." DW and I have never heard of this - and we can't remember seeing this on the gov't CARS website. The dealer tells us that some of his clunker clients have been rejected by Uncle Sam because they couldn't produce the Letter of Experience. He says, just call your agent and they'll fax one right over. Other clients are doing this. He shows us one from Farmers Insurance.
We call our agent at Allstate (major, big, huge carrier!). Agent says, no one ever requests these but they could get me one in 10 days!! Holy crap, that's not good enough. Dealer says if Uncle Sam rejects our deal because we can't produce this... we have to return the new car, take back the old clunker and cancel the deal. Can you believe this? DW and I are stunned.
It seems Uncle Sam doesn't want to make this easy. Why wouldn't my policies be proof enough? They show continuous coverage.
Has this happened to anyone else?
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08-01-2009, 03:50 PM
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#2
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Full time employment: Posting here.
Join Date: Dec 2003
Location: San Carlos, CA
Posts: 639
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I only had to show insurance cards covering the last 12 months, no mention of a 'letter of experience'.
I suspect someone has misunderstood something, somewhere. Maybe the letter of experience is to cover cases where the old insurance cards can't be produced. I'm sure a lot of people throw them away.
Peter
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08-01-2009, 04:29 PM
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#3
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Thinks s/he gets paid by the post
Join Date: Jun 2006
Posts: 2,083
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I to would suspect it is an issue with the dealer or even salesman misunderstanding something. May want to check with another sales rep or dealer.
__________________
"We do not inherit the earth from our ancestors, we borrow it from our children.
(Ancient Indian Proverb)"
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08-01-2009, 08:21 PM
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#4
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Recycles dryer sheets
Join Date: Apr 2009
Posts: 93
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I simply had to provide my insurance cards for the last year and proof of registration for the last year...no mention of a Letter of Experience. I agree with Zathras--you may want to call another dealer to see what kind of documentation they're asking for from their clients.
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08-03-2009, 02:13 PM
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#5
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Recycles dryer sheets
Join Date: Mar 2007
Posts: 236
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Thanks for your suggestions.
I did call a few other dealers in my area and they indicated the letter of experience is one way to prove coverage. Most people are using the little cards that get stashed in your wallet or glove box.
At the time, my salesman showed me his gov't cars requirements form. It definitely said "proof of insurance AND letter of experience." Obviously, most dealerships are not requiring both.
Now I feel the dealer shouldn't be calling... asking me to return the new car. But if I see my caller ID indicate it's the dealer, maybe I just won't pick up the phone
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08-03-2009, 06:02 PM
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#6
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Thinks s/he gets paid by the post
Join Date: Mar 2004
Location: Dallas
Posts: 1,211
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What bugs me is the requirement to crunch perfectly good cars traded in.
Why not just ship them to India or some other country? .... suggested by
Kudlow.
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08-04-2009, 03:12 PM
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#7
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2007
Posts: 14,328
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Quote:
Originally Posted by charlie
What bugs me is the requirement to crunch perfectly good cars traded in.
Why not just ship them to India or some other country? .... suggested by
Kudlow.
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According to this video from the Detroit Free Press
Freep.com | Detroit VideoNetwork | Detroit Free Press
The engines are seized and the rest of the parts may be resold.
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08-04-2009, 03:24 PM
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#8
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Thinks s/he gets paid by the post
Join Date: Jun 2006
Posts: 2,083
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Two reasons I can see.
1) prevent an increase in the supply of 'clunkers' so the used vehicle market is not impacted.
2) environmentally, it is very expensive to ship these things overseas AND part of the point is to get some 'clunkers' off the road, not just shift who the driver is to someone else.
Not saying they are good reasons, just possible reasons that have some rational behind them.
__________________
"We do not inherit the earth from our ancestors, we borrow it from our children.
(Ancient Indian Proverb)"
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08-04-2009, 06:00 PM
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#9
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Recycles dryer sheets
Join Date: Jul 2007
Posts: 204
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Quote:
Originally Posted by Zathras
Two reasons I can see.
1) prevent an increase in the supply of 'clunkers' so the used vehicle market is not impacted.
2) environmentally, it is very expensive to ship these things overseas AND part of the point is to get some 'clunkers' off the road, not just shift who the driver is to someone else.
Not saying they are good reasons, just possible reasons that have some rational behind them.
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If you ship it to a third world country and they use the vehicle as a business like public transportation then everyuone wins. They are very resourceful over there.
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08-06-2009, 04:11 PM
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#10
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Recycles dryer sheets
Join Date: Mar 2007
Posts: 236
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I guess the clunker program is not going smoothly for everybody. It sounds like this dealer is having major problems assisting their clients....
Video - Breaking News Videos from CNN.com
Meanwhile, I have not (yet) been asked to return my new vehicle
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08-06-2009, 05:18 PM
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#11
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Thinks s/he gets paid by the post
Join Date: Nov 2005
Location: North of Montana
Posts: 2,769
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Quote:
Originally Posted by steve88
If you ship it to a third world country and they use the vehicle as a business like public transportation then everyuone wins. They are very resourceful over there.
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Vehicles old enough to be used for parts in Cuba are ineligible.
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