Beware of Cash for Clunkers scams

Car buyers quickly snatched all of the $1 billion allotted for the Car Allowance Rebate System (CARS), nicknamed Cash for Clunkers, after President Obama signed it into law in late June. Congress has come up with another $2 billion to extend the program until Labor Day.

But as with any financially popular plan, scammers have moved in, eager to take money from consumers who would be better off without their “help.”

The BBB of Greater Maryland offers this advice to avoid being cheated:

• You don’t need to register or receive a voucher to participate in the program; it’s the dealership’s responsibility to fill out the paperwork.

• Not all dealers are participating. Those that do must register with the federal government.

• The program applies toward new cars and trucks that are either leased or purchased.

• Not all new vehicles will qualify for receiving the credit. The new vehicle must cost less than $45,000; passenger vehicles must have a combined fuel economy value of at least 22 miles per gallon.

• Credits are $3,500 or $4,500 depending upon the difference between the combined fuel economy of the vehicle that is traded in and that of the new vehicle. The credit will be applied toward the cost of the new car.

• Trade-ins that qualify must be no older that 25 years and have had a combined city/highway fuel economy of 18 miles per gallon or less at the time it was originally purchased. Visit www.fueleconomy.gov to learn the fuel economy of specific vehicles.

• The trade-in vehicle must have been continuously insured, in accordance with state law, and registered in the same owner’s name for the one-year period immediately before the trade-in.

For more information, check http://www.cars.gov.