Smart for Clunkers

[Orphan-Beggar]

John H, your points seem valid

If I was purchasing a new vehicle,
I would probably find someone with a clunker,
offer her $1 to $4499 to put her, and my name, on the title,
(claim we were business partners),
then drop her name later, or not.

(Will this loophole be possible?)

[John_H]

Interesting.
Person A has the vehicle insured for 12 months prior.
Person B is added the the clunker title.
Person A&B purchase the new car "together."
Person A is dropped from the title.

Might pass muster but it sounds like one heck of a mess. The $4500 won't be intended as income so tax implications should be absent.

So - who do you trust?

[Orphan-Beggar]

At $2,250 for each party, it could be a win/win
(there are a lot of clunkers out there)

A Clunker Matchmaking service, might prove invaluable

[The GMan]

My new baby is on its way, the 4.2 financing is in place until the end of July, and my '98 trade-in is now worth 4500 instead of 2000.

:woohoo

[The GMan]

Originally Posted by Orphan-Beggar

John H, your points seem valid

If I was purchasing a new vehicle,
I would probably find someone with a clunker,
offer her $1 to $4499 to put her, and my name, on the title,
(claim we were business partners),
then drop her name later, or not.

(Will this loophole be possible?)

I don't think so. According to the website, you have to show proof that the vehicle has been registered and insured by you for at least a year.

The insurance thing will be easy, but the registration will be harder. When I re-register my vehicles I toss the old paperwork.

[Orphan-Beggar]

Originally Posted by John_H

Person A has the vehicle insured for 12 months prior.
Person B is added the the clunker title.
Person A&B purchase the new car "together."
Person A is dropped from the title.

-Random clunker owner has the vehicle insured for 12 months prior.

-Clunker owner "purchases" new vehicle with your money (your name is included on new vehicle registration and title)-Clunker person's name is dropped later, or not.

http://www.cars.gov/files/CARS-Law.pdf
the term `eligible trade-in vehicle' means an automobile or
a work truck (as such terms are defined in section 32901(a) of
title 49, United States Code) that, at the time it is presented for
trade-in under this section--
(A) is in drivable condition;
(B) has been continuously insured consistent with the
applicable State law and registered to the same owner for
a period of not less than 1 year immediately prior to such
trade-in