NHTSA Warns of Car Trade-In Scams

Are you looking to get cash for your clunker and drive a car with better gas mileage? You'll want to read this report first.

The National Highway Traffic Safety Administration (NHTSA) is warning consumers about programs that ask for personal information or money up front.

The official program hasn't even been launched yet and already the NHTSA is finding websites that look official, but are not. That's why they want to warn consumers now so they don't get ripped off.

The scam is a spinoff of a legit program that has been approved by Congress. It's called the Car Allowance Rebate System, or CARS for short. It's a program designed to pump money into the economy and get more fuel efficient cars on the street.

Under the CARS program, you can trade in a car that is 1984 or newer. It's a deal completely worked out by a car dealer. Once you meet the eligibility requirements, you can trade in that gas guzzler for a fuel-efficient car and get a $3,500 to $4,500 rebate.

President Obama hasn't even signed the legislation yet, and already the NHTSA has found websites claiming to be affiliated with the official program. The sites or in some cases telemarketers ask you for personal information such as social security numbers or ask you to pre-register.

The NHTSA says don't fall for it. There's no pre-registration process.

"We want to make sure its run honestly and has no problems with fraud or abuse. So, it will take some time to set up some safeguards," said NHTSA spokesperson Rae Dyson.

Once the President signs the legislation, the NHTSA has 30 days to implement the program.

For updates on the cars program go to www.cars.gov .

If you think you've been mislead by one of these unofficial sites, call the NHTSA hotline at 1(888) 327-4236.