Some Buyers Still Getting Checks in the Mail from Their Clunkers

Posted: Oct. 19, 2009 10:10 a.m.

Just because you traded in your '93 Grand Caravan two months ago, that doesn't mean it's stopped paying you back. If you live in Oregon, there may still be another check in the mail relating to your clunker -- coming to you, not the dealership.  If you don't live in Oregon, you may still be due some money.

Kicking Tires explains, "Some Oregon car buyers who traded in their old vehicles for more fuel-efficient models under the Cash for Clunkers program got an unexpected bonus check in the mail." A handful of Oregon dealerships have "sent checks to customers for the scrap value of their trade-ins."

Portland's Oregonian reports, "The federal government only required that car dealers tell buyers what that scrap value would likely be. But beyond saying dealers could keep $50 of it, it didn't say where money should go." Some Oregon auto dealers, such as the Ron Tonkin Family of Dealerships, have pocketed the $50, and mailed the rest in a check to the buyer who traded in the scrapped car. Customers were reportedly surprised - they hadn't been told to expect the small windfall. Brad Tonkin, Vice President of the Tonkin group, told the Oregonian the company expects to mail out about $200,000 worth of scrap refunds.

The Oregonian notes, "Other Oregon car dealers, including Wentworth Chevrolet, said Wednesday they too are sending new car buyers a check for the scrap value of their clunker." Meanwhile, "Wally Preble, chairman of Carr Chevrolet in Beaverton, said his dealership gets about $100 for each scrapped vehicle. He said his company gave that scrap value to any customer who asked for it."

The Tonkin dealerships appear to be doing the right thing, but their behavior is raising questions about other dealers nationwide. Kicking Tires asks, "Have dealerships around the country been following a similar protocol and mailing checks to customers? Or have they been pocketing the full value of the scrapped vehicles?"

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