Cash For Clunkers Organizations Warn Of Online Scams

New York, NY (June 25, 2009) - The recent passage of the "Cash For Clunkers" bill has sparked a nationwide wave of interest in the program, which provides up to $4,500 to car-owners who trade in their old "clunker" for a new, more fuel efficient alternative. However, the flood of enthusiasm for the program has led to the emergence of scams targeting car owners looking to benefit from the program. The Cash For Clunkers Information Network, a group of information sites that have educated the public about the new program since its inception in the senate, has issued a warning to consumers and is providing specific instructions on how to avoid scams on their websites.

Because the C.A.R.S. legislation was fast tracked as a part of the war supplemental bill there was not a lot of information available to the public. As a result, a few information sites (like ours) provided important information that encouraged the public to support the bill. As thousands of our visitors already know, their support of this legislation is a big reason this bill was signed into law. This is a wonderful example of "We the People" using the modern medium of the internet to have a collective voice for progress. Unfortunately, some other websites emerged online and apparently used this tool to attempt to fraudulently capture personal information to be used illegally.

While there are a lot of legitimate sites that have been around well before the bill was signed into law with information on the cash for clunkers program (like ours and others), you should be wary of any site that says you have to "register" to participate in the program, or asks you for any personal financial information. Some consumer information sites will offer a service that allows consumers to get price quotes from dealers so they can avoid wasting time and gas money driving around town. If you intend to use such services make sure they have a clearly defined privacy policy and visitor agreement (located at bottom of site) that assures you that your contact information will remain private and secure. However, if any websites ask for your personal information to "register" you or to "issue a voucher", do not give any information to them because NHTSA reminds consumers, "You do not need a voucher and you are not required to sign up or enroll in this program. Participating new car dealers will apply a credit, reducing the price you pay at the time of your purchase or lease, provided the vehicle you buy or lease and the vehicle you trade in meet the program requirements. The dealer will then obtain reimbursement from the government." To protect our visitors we will continue to report on any online scams on the home page of our website.

Prospective car-buyers can qualify their cars at the www.cars.gov website, which is the only official government portal to the program. Once qualified, car buyers need only visit a participating dealer to purchase a voucher-eligible vehicle. The dealer will handle all official government documentation to secure and deliver the appropriate voucher to the car buyer. The website provides detailed information about the bill and simple steps you can take to determine if you qualify and for how much. Since the program has just been signed into law by Obama the NHTSA has 30 days to post final details of the program on their website. If you qualify we encourage you to visit their site and click on "Sign up for Updates" to give your personal information so you can receive program information as it's released. As stated before, this website is ok to provide "personal information" because it is secure and protected by their privacy policy and visitor agreements.

Organization Thanks the people for efforts to pass bill

The organization wants to thank its army of supporters who helped Cash For Clunkers Information Network inform thousands of people about the program before it reached the senate, which helped consumers lobby their local representatives to get it approved. The organization is proud to have been an important advocate of the congressional bill and now continues to serve as a voice for the public to encourage retailers and manufacturers to offer additional incentives to consumers to get into more fuel efficient vehicles that will help the environment, the economy and their industry.

Now that the government has an information portal we are directing all of our visitors to the new website launched by the NHTSA (www.Cars.gov) to get updates on what is happening with the program. Before the government website was live, thousands of consumers visited many of our websites and some thought that CashForClunkersHeadquarters.com was the official government website. For this reason we want to make sure the public understands that our websites are not affiliated with the government, they are private websites dedicated to getting the word out about the government program. To avoid any potential confusion we have redesigned the website to have a different look and feel and have directed our visitors to go to the only official government website, www.Cars.gov. In addition, we believe that having the name headquarters in our name could lead people to believe that we are a government agency headquarters. For this reason we are going to use our other websites as the names that are promoted to the public so we can avoid any potential confusion.

The Clunker List

Since the government's new website, www.Cars.gov, is now providing updated information about the program, CashForClunkersInformation.org is changing its focus to help dealers educate consumers in their local markets. To this end, the organization has created a Clunker List, a comprehensive listing of car makers, models and years which may qualify for voucher money based on program guidelines. The Clunker List, can be accessed for free at www.ClunkerList.com. This is also available with consumer information in a mailing list by market and is an effective tool in targeted communication campaigns designed to edcuate local markets about the potential benefits of the program. This "Clunker List" identifies consumers who have a higher probability of qualifying for the program based the vehicle they are driving.

The organization has also created a "Qualified" Clunkers List which takes into account areas and households that, due to income levels, purchase histories, and other key factors, have a higher probability of qualifying for financing a new vehicle. CashForClunker.org is encouraging dealers to target "Qualified Clunkers" in order to avoid being flooded with unqualified consumers who could end up unnecessarily disappointed to find out they cannot make use of the program. The organization has published the "Clunker Report" at www.ClunkerList.com which identifies the number of potentially qualified consumers in the top 59 markets. This is not a list that guarantees qualification; it is a list of the number of probable candidates in each market based on the rules of the program.

Celebrities Support www.CashForClunkersInformation.org

CashForClunkersInformation.org has also been receiving an important push from celebrities like Dancing With The Stars' Cristian de la Fuente and Ugly Betty star Angelica Vale to educate consumers about the program. In addition, Alfonso Aguilar, the former Chief of the U.S. Office of Citizenship, is also a spokesperson for the organization due to the large impact the bill has on the Latino community and other immigrant groups.

"This government subsidy will make it easy for people to get a new car that is a lot less expensive to operate and maintain because of the great gas mileage and lack of repair costs," said Cristian de la Fuente "It is great to see the government funded automotive bailout helping hard working people who need the financial support." Angelica Vale added, "Finally consumers are getting a bail out, because they are benefiting by up to $4500 a person." Since a large number of the clunkers on the road are owned by minorities and immigrants, these communities will benefit significantly from this legislation. "We have passionately supported Cash For Clunkers because of its positive impact on the environment, economy, consumers and its benefits for hundreds of Hispanic American communities whose livelihoods are tied to the auto industry," said Alfonso Aguilar, the previous U.S. Chief of Citizenship and Immigration. "This legislation will create thousands of new jobs for all Americans who work in the many business that serve the automotive industry."

CashForClunkersInformation.org encourages manufactures and dealers to Offer more

www.CashForClunkersInformation.org continues to encourage dealers and manufactures to create their own Cash for Clunkers program to offer additional incentives to consumers above and beyond the government program. We believe that the winning formula is to have Manufacturers and dealers contributing to the government funded program to maximize the positive effect on the economy and the environment. We will continue to promote a blended strategy of the public and private sectors working together to maximize the impact of the program.

The biggest supporters of Cash For Clunkers bill has been manufacturers and local car dealers who see it as an opportunity to boost their own businesses and regional economies which are heavily dependent on car sales. One of the leaders behind the cash-for-clunker concept in the dealer world is Paragon Cars, one of the largest dealers in the country. "While Paragon's cash-for-clunker program can help our area, the country needed government support to make the serious economic and environmental impact we need," said Brian Benstock, one of the partners of Paragon. New York's Paragon Cars (www.ParagonCars.com) has taken a lead in educating the public about the bill by hosting a regional CFC headquarters information site for New York residents (www.CashForClunkersNY.com). In addition, Paragon has announced their program to offer additional incentives above the government vouchers to car buyers who trade up into a more fuel efficient vehicle. As a part of Paragons Cash for Clunkers program, the dealership agreed to provide $500-$4500 discounts towards the purchase of a new or pre-owned vehicle, which the governments program does not cover. Details are at www.ParagonHonda.com and www.ParagonAcura.com

CashForClunkersInformation.org been encouraging dealerships and manufacturers to create their own Cash for Clunkers programs whereby they agree to contribute between $500 and $4500 of additional discounts to car buyers who qualify and do not qualify for the governments program. Since a large number of consumers who own clunkers may not be able to afford a new vehicle, retailers like www.ParagonCars.com and www.RickCase.com are offering to provide similar incentives on nearly new certified pre-owned vehicles that are within closer reach of some consumer's budgets.

Bill Stimulates Economy Before Program Begins

Despite the many related questions and complexities, the bill has already begun to make an important economic impact. NHTSA's communication efforts combined with the enthusiasm of local dealers are leading to the beginning of a projected upswing in the auto industry. "After hearing about the Cash for clunkers program we decided to buy new inventory, hire additional salespeople and negotiate additional media buys before the program was officially announced," added Benstock, from www.ParagonCars.com. Benstock, who has contributed auto industry analysis to CNN and other news outlets, further explained that, "Automotive dealers stimulate the local and national economy by spending the most of any sector in advertising, hiring the most in many local markets, generating enormous state tax revenue and often being some of the most prolific local philanthropists."

About the Name - Cash For Clunkers

Our network of sites is called Cash For Clunkers because of the popular name given to the concept by the public and the press. While making its way through congress there were many bills with many names so the public and the press commonly referred to all versions of the bill as the "Cash For Clunkers" program. For this reason many consumer information sites, including ours, have utilized this universally understood term to refer to the many programs that exist in the world, some funded by the government (C.A.R.S) and others financed by automotive retails. We continue to eagerly encourage dealers and automotive manufactures to offer additional incentives beyond the governments program to increase the positive impact on the economy, environment and consumers.

Here are the most popular Cash For Clunkers Consumer Information Websites:

www.CashForClunkersInformatoin.org

www.DineroPorSuCarcacha.com

www.ConsumerAssistanceToRecycleAndSave.com

www.ClunkerList.com

www.CarsProgramInfo.com

Media Contacts:

Lisa Dallos
HL Group
212-529-5533 x 277
ldallos@hlgrp.com