Is That Used Car A Dud?

That 2005 LandRover Freelander you have your eye on is jammed full of options including a navigation system, a choice sound system, and just the right measure of interior room to transport your family of four. Best of all, the price is pleasing: you checked what the value of a Freelander is with approximately 40,000 miles on the odometer and believe that you paid less than what you could have been charged for the automobile.

The Justice Department Steps In

That used Freelander you like is a great value. But does it pass Justice Department muster?

However, there is something that you and every last consumer should do before signing your sales contract: stop by the US Justice Department’s new vehicle database internet site (link at http://www.usdoj.gov/) to discover your vehicle’s history. Starting this past January, the federal government established a website featuring the vehicle history of tens of millions of cars, trucks, vans, SUVs, etc. in its database. It isn’t done yet, but it can still provide powerful data about your specific car.

The database already contains data from 37 states with the remaining 13 finalizing their information. Come January 2010, all states must take part and insurers and scavenger yards must start sharing their info by the end of the following March.

Sneaking Past Damaged Cars

Though incomplete, the database could help you learn if your car has had an accident, been damaged by floodwaters or if it has an unspotted vehicle history. Various hurricanes over the past several years ruined hundreds of thousands of cars, but many of those vehicles were cleaned and put back on the road months later to unaware buyers. By retitling damaged vehicles and selling them in other states months later, unsuspecting consumers were left with a car that could become rusty, experience transmission, engine or other serious engineering problems, or start to reek.

As of right now, the federal government says most vehicles are already listed. To find your information, you will need to pay a fee to enter a vehicle’s identification number (VIN) tag which will divulge selective information about that car. Just one VIN can be checked at a time and, as mentioned, not every vehicle is listed yet. Updates are made monthly, however when the system is fully operational in 2010, some duds could still sneak in.

A Beginning, A Good One At That

Of course, the database isn’t perfect and there is extensive room for improvement. By the way, the law to produce the database dates back to 1992, but it wasn’t enforced until lately. Consumers, insurance providers, lenders, and other interested parties will be able to check VIN tags which should uncover correct information about a car prior to you making a purchase decision.

Clearly, the federal vehicle database is a very good move whose time has come. Once full compliance has been achieved, the database has the potential to save buyers plenty of heartache the next time they buy a used car.

See Also — KBB Forecasts Used Car Price Bubble

Consumers Warned In Advance Of Clunkers Program Start

The ink wasn’t even dry on the “cash for clunkers” bill that President Obama signed into law when word came out that scams were already taking place. It seems that some enterprising people were creating informational websites about for the Car Allowance Rebate System (CARS) program, seeking to secure confidential information from shoppers including their social security numbers. Those scams have caught the attention of consumer activists who are warning people people to be careful.

Beware of Identity Theft

Car manufacturers are preparing customers in advance of the program’s start date which hasn’t been established yet as Congress fine tunes the requirements. But, opportunists are already at work trying to get people to “register” for the program a step that isn’t part of the program requirements. Consumers who inadvertently give their personal information out are at risk of losing their identity, money and maybe more.

The CARS program is a six step process involving the following:

1.Check the www.cars.gov site for updated information. This is the only site consumers need to go to in order to keep updated.

2.Next, consumers should see if their cars are eligible for the program. Models must be no older than 25 years old at time of trade in date and they must get 18 mpg or less with slightly different requirements for large pick up trucks and large vans. As long as your car has been continuously insured and registered over the past year and you plan to purchase or lease a new car, then you should be eligible as long as all of the other requirements have been satisfied.

3.When you go to the dealership, you’ll need to bring your title, registration and proof of insurance with you.

4.You do not need a voucher in order to get your rebate as dealers will apply a credit at purchase. The NHTSA (National Highway Traffic Safety Administration) will confirm that your car qualifies after the sale which means if there is any mistakes that error will be on the dealer’s shoulders not yours. About ten days after the sale, the NHTSA will issue a financial credit to the dealers as long as all requirements on the dealer’s end have been met.

You can sign up for program updates through the Cars.gov website. Simply give them your email address and when you receive a confirming email from them, hit the confirm subscription button and you’ll be taken to a page on their site with their logo and a message saying, “Your subscription has been confirmed. Thanks!”