Cash for Clunkers creates problems for dealer, driver

Cash for Clunkers creates problems for dealer, driver

By WHITNEY HOLMES
6 News Anchor/Reporter

KNOXVILLE (WATE) -- A local man has a warning about the government's "Cash for Clunkers" program.

He cashed in on the deal and then a dealership asked for the trade-in money back.

"It's the very first car I have ever bought brand new from the dealership," says Josh Burgett. "With the voucher, I thought it was worth it because I had an old grandma clunker car."

Two weeks ago, Burgett turned in his '97 Chrysler Concorde for a brand new car. Under the "Cash for Clunkers" program, he got $3,500 toward his purchase.  

Everything was great until he got a phone call from the dealership.

"I get a phone call this morning stating that because EPA made some changes, the car no longer qualifies for the voucher," Burgett says.

It turns out, his Concorde was no longer considered a clunker by the government.

Even though the government's program went into effect on July 1, new rules came out last Friday taking 78 vehicles off the clunker list.

The EPA says it made changes to its miles-per-gallon ratings to comply with a requirement in the legislation that the ratings be accurate up to four decimal places.

A clunker must get 18 miles per gallon or less.

When Burgett bought his car, his Chrysler had a rating of 18 MPG. Now, it has a rating of 19 MPG.

That means many dealers who thought they'd be reimbursed by the government for buying clunkers, are not.

"I'm not the only person that is going to be in trouble with this," Burgett says. "They are qualified and then all of a sudden, it doesn't qualify and they get calls from the dealer saying 'hey we need to work something out.'"

At first, the dealer wanted Burgett to pay the money back, but then decided to honor the deal and take the $3,500 loss.

"I understand their position, but I feel that we had a deal in the very beginning and the $3,500 is something I couldn't afford to do," Burgett says.

There's no word on whether the government will pay back the dealership.

After almost losing his first brand new car, Burgett has never been happier to be behind the wheel.

To see if your vehicle qualifies for the program, visit www.cars.gov/.