Legal Question in Consumer Law in Minnesota

We purchased a vehicle from a dealership with the "cash for clunkers" government program, for which there would be a $4500 rebate. We paid cash for the vehicle and that check has been cashed. It has been 21 days since the purchase and we have not received the license. The temporary permit has expired. The dealer is refusing to register the vehicle in our name because they haven't received the $4500 yet. They told us "we will pay for any ticket you get due to the expired temp permit". When we purchased the vehicle, they had us sign a document, which they told us was required as part of the government program which indicated we'd be responsible for the $4500 if they did not get paid from the program. I've since checked the cars.gov site, and it states that the document we signed is not part of the program and that consumers do not have to sign it. It also states that the consumer has to be given posession of the vehicle. I reported a complaint to cars.gov and they did indicate the dealer is in violation with their agreement to the government. My question is, if the dealer does not get the $4500 due to their negligence, can they hold us responsible due to the document we signed, for which they indicated was part of the cars program when it is not? In addition, after purchasing the vehicle, they called and told us the car has an issue with the paint job and that it needs to be repainted, but said they cannot repaint it because they haven't received the $4500. The dealership has indicated that they have submitted the paperwork to the government for the rebate, but have not yet received it.


Asked on 8/20/09, 8:32 am

1 Answer from Attorneys

David Anderson Anderson Business Law LLC

You should have an attorney transmit a DEMAND LETTTER to the dealer pursuant to your contract.

Under the program they are OBLIGATED TO HONOR the rebate, even if they have not yet monetized their claim to US Govt.

Call or email for further assistance.

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Answered on 8/25/09, 11:03 am


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