FI showroom red and grey logo
MenuMENU
SearchSEARCH

N.Y. AG Orders Dealers to Stop Deceptive "Cash for Clunkers" Ads

New York Attorney General Andrew M. Cuomo announced Monday that his office has issued cease-and-desist letters to nearly 40 auto dealers across New York state whose advertisements for the new federal Car Allowance Rebate System (“CARS” or “Cash for Clunkers”) were misleading and deceptive.

by Staff
August 11, 2009
2 min to read


ALBANY, N.Y. – New York Attorney General Andrew M. Cuomo announced Monday that his office has issued cease-and-desist letters to nearly 40 auto dealers across New York state whose advertisements for the new federal Car Allowance Rebate System (“CARS” or “Cash for Clunkers”) were misleading and deceptive.

The Attorney General’s Office took the action after reviewing a number of advertisements from various car dealerships that omitted significant requirements that had to be met in order for a consumer to be eligible to get the rebate. The office said the ads misled consumers into believing that their trade-in vehicle qualified for the program when it did not or that they were eligible for a several-thousand-dollar rebate, when they were not. The letters order all dealerships to immediately modify promotions and advertisements to clearly explain how the program works.

Ad Loading...

The "Cash for Clunkers" program provides auto dealerships with funds to credit consumers $3,500 or $4,500 for qualified trade-ins that may be worth considerably less.

“This program could be a boon for both our economy and our environment, as well as provide much-needed financial assistance to consumers. Businesses that fail to advertise honestly and try to take advantage of this federal program will face legal action by my office,” said Attorney General Cuomo. 

Advertisements by several auto dealerships aggressively promoted the program without fully disclosing its limitations, while other dealers advertised similarly named “cash for clunker” promotions that have nothing to do with the CARS program without making the distinction.

Dealerships that received cease/desist letters, include, by region:

New York Metro: Plaza Hyundai, Ltd.; City World Toyota; City World Hyundai

Ad Loading...

Nassau County: Garden City Jeep Chrysler Dodge; Hassel Volvo; Karp Volvo; Millenium Toyota and Nissan of Garden City

Suffolk County: Competition Toyota; Security Dodge; Town & Country Jeep Chrysler Dodge; Atlantic of Bay Shore

Westchester: Smith Cairns Ford, Inc. of White Plains; Central Avenue Chrysler Jeep Dodge

Poughkeepsie: Healey Chevrolet; Healey Ford; Newburgh Park Motors

Buffalo: Basil Resale Sheridan; Basil Toyota; Cappellino Buick; Dave Smith Ford; Emerling Chevrolet; Paddock Chevrolet

Ad Loading...

Rochester: Lessord Chrysler Products; Bob Johnson Chevrolet

Syracuse: Fayetteville Dodge; Royal Nissan-Subaru; Summit Dodge

Binghamton/Southern Tier: Delhi Motor Company, Inc.; Gault Toyota; Miller Auto Team; Stafford Chevrolet

Utica:  Victory Chrysler Dodge Jeep; Cooper Kia; Steet Ponte Chevrolet; Don’s Superstore; Davidson Chevrolet Cadillac Buick Pontiac GMC of Rome; Carbone Nissan; Carbone Dodge Chrysler Jeep 

Plattsburgh: Dannemora Ford; Garvey Hyundai

More F&I

Industryby StaffMarch 6, 2026

Explore the 12 Rules for an F&I Life at EFI

EFI 2026 will take place April 13–15 at The Cosmopolitan Las Vegas.

Read More →
F&IMarch 4, 2026

Creating Your Own Economy

In this video, Reese Dailey explains how effective follow-up drives better results across the dealership, including increased sales, higher F&I penetration, and stronger customer retention.

Read More →
Industryby StaffMarch 2, 2026

Prove You Can Do F&I at EFI

‘So You Think You Can Do F&I’ is a live role-play contest taking place at the 2026 Ethical F&I Managers Conference.

Read More →
Ad Loading...
Industryby Lauren LawrenceFebruary 25, 2026

Report Finds Year-End F&I Strength

Deal volume ebbed and flowed throughout 2025, but product performance remained steady, according to automotive technology and data intelligence solutions provider StoneEagle.

Read More →
Industryby Hannah MitchellFebruary 23, 2026

Some Auto Brands Cheaper to Insure

A new top 10 list ranks the least expensive for average full insurance coverage on a clean driving record and high driver credit scores.

Read More →
F&IFebruary 13, 2026

Business Office Blueprint

Try following these 20 steps to greater success in the dealer F&I office this year.

Read More →
Ad Loading...
Industryby Lauren LawrenceFebruary 11, 2026

Insurance Shopping on the Rise

A TransUnion study found that relationship-driven sales models proved to be important, as consumers who used an agent had a lower shopping intensity than those going it alone.

Read More →
Industryby Hannah MitchellFebruary 4, 2026

Auto Insurance Cost Reprieve

2025 brought consumers relief after years of rate hikes, but 2026 could bring renewed policy pain, depending on how U.S. trade policy affects prices.

Read More →
Reese Dailey from Automotive Training Academy by Assurant
F&IFebruary 4, 2026

Cash Deal Strategies

In this video, Reese Dailey of the Automotive Training Academy by Assurant reveals strategies to make cash deals profitable without relying on monthly payment bumps.

Read More →
Ad Loading...
Cox Automotive and Dealertrack logos displayed over a dealership showroom background.
F&Iby StaffFebruary 3, 2026

Cox Auto Says Dealertrack Offers Greater Finance Efficiency

Suite of new APIs, product enhancements and integrations is designed to help maximize contracting and funding efficiency for lenders and their dealer partners.

Read More →