Penske Dealers Sued Over Scrappage Refund

Usually, a news about a New York consumer engaging in a class action against automotive dealer Penske over a scrappage refund would have passed unnoticed, if not for the American taste for precedents. According to Autonews, the suit filed may open the doors for other consumers to ask dealers to pay in excess of the government backed CARS.

Now, the sum in question is so tiny it can easily be overlooked but, apparently, it's the thought that counts. Supposedly, Penske's Westbury Toyota in New York state, the dealer being sued, estimated the trade-in value of a 2000 Chevrolet Astro owned by Philip Allegretti, at... $125. According to the complaint, the law stated that the dealer was to retain $50 percent of that for administrative costs but instead, they kept the entire fabulous sum.

The law behind CARS said that a dealer is to evaluate the car of a customer, tell him/her what they would get from a junkyard for the car and keep only $50 for administrative cost. The law, however, did not say what would happen to the extra money if the junkyard offered more for the car than the $50.

The bad news for Panske is that the court filing says the suit was filed on behalf of all those "who purchased or leased a vehicle in connection with CARS from any of the 150 Penske owned and operated dealerships in the US."

The plaintiff says Penske dealerships were "unjustly enriched by the members of the class because they illegally retained the entire amount of the scrappage value."

Not necessarily as a result of the aforementioned complaint, other dealers have already began sending their customers the sums of money which exceeded the $50 required by law.