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Cash For Clunkers Tax Deduction Rumors

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In the past few weeks, several rumors have circulated among car dealers and car buyers relating to the Cash for Clunkers (Cash 4 Clunkers or C4C) program.  Some of those rumors have claimed that the amount of the payment the dealer receives on behalf of the customer’s trade-in would be reduced if either the car dealer or the car buyer/consumer owed back taxes.

Those rumors are simply not true.  The government agency responsible for the Cash for Clunkers program, the U.S. National Highway Traffic Safety Administration, has confirmed that they are not taking any money that may be owed to the government from the Cash for Clunkers payment.

Don’t let a dealer try to get extra money from you by claiming that they did not receive the full amount of the rebate from the government.  If a dealer tries to tell you that their Cash 4 Clunkers payment was reduced by the government due to back taxes, report that dealer to the National Highway Traffic Safety Administration.  If the dealer insists you need to make an additional payment to them, seek the assistance of an experienced car lawyer here in Central Florida.