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AutoBlog: REPORT: Dealers now allowed to kill C4C engines after they get rebate checks

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Filed under: Car Buying, Government/Legal


Last week, there were gasps all around as people watched how a Cash-for-Clunkers trade-in meets its smoky end. Even though the program was blessed with a $2B lifeline to continue, there may be fewer silicate glass engine deaths from now on since dealers have been granted the option of waiting to kill engines until after they receive their rebates.

Many dealers complained of having their rebate applications rejected, and if they can't get the rejection overturned, they're left with tons of useless junk on which they've just lost thousands of dollars. In order not to leave dealers in the lurch if their rebate applications are rejected, the National Highway Traffic Safety Administration will now allow dealers to store the car in working order until seven days after they receive their rebate checks.

We don't know the rejection rate for cars that dealers believed would be approved, but we can't help but wonder what a dealer might do with a car that's not worth at least $3,500 on the open or wholesale market if it's not sure that reimbursement for the rebate's a lock.

[source: Automotive News, sub. req'd | Image: Flickr, VJnator CC 2.0]

REPORT: Dealers now allowed to kill C4C engines after they get rebate checks originally appeared on Autoblog on Mon, 03 Aug 2009 10:57:00 EST. Please see our terms for use of feeds.

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