BEWARE OF "CASH FOR CLUNKERS" SCAMS

30 July 2009 2:00 p.m. Eastern
Source: MSNmoney.com

The "Cash for Clunkers" program offers owners of older vehicles up to $4,500 to trade them for a brand-new vehicle. The National Highway Transportation Safety Administration is warning car shoppers that official-looking sites have sprung up, offering information on the program and asking for personal data or preregistration. If a Web site uses the term "cash for clunkers," it's not official at all. The program's name is Car Allowance Rebate System and the only official site is CARS.gov. Buyers do not have to register or apply for the program.

The bill provides $1 billion for the program through November 1, 2009, and vouchers will be issued on a first-come, first-served basis. The likely scenario for their use: Dealers let you know that your trade qualifies, credit the amount to your down payment, then apply for the voucher. Only new vehicles—domestic or imported, purchased or leased—qualify, and they must have sticker prices under $45,000. Trade-ins must be 1984 models or newer, get no better than 18 miles per gallon (according to new calculations at www.fueleconomy.gov), and have been registered and insured for the past year. Trade-ins will be scrapped and have no value to dealers above the voucher amount.

Visit CARS.gov for program details and contact a PEFCU representative at 765.497.3328 or 800.627.3328 to save more with low-rate financing.

Source: MSNmoney.com