Who is liable for the $3500 or $4500 rebate if a car is deemed ineligible after the sale is finalized in the Clunker program?

Your sales paperwork is the first place for the answer because some dealers are now using a special form (brand new) that says you agree to pay them back if the Cash for Clunkers rebate doesn't go through for any reason. My advice is to be careful about such forms. The dealer should know when the sale occurs what the eligibility is and should not need to use this form at all. In fact, the form can be used to trick you into buying a new car on the belief that there will be a rebate, only to have the dealer call you up later (after your friends, neighbors and family have all heard about your new car) and demand extra money from you. And that can put you in a very embarrassing position. If the paperwork is all signed up and final, and then the dealer calls you back later and says they need more money, you should always be suspicious. Generally, you would have the right to cancel the deal if you want. Every state has a special "Udap" law that makes it illegal for a merchant (or car dealer) to do anything that is deceptive (some state laws also forbid any unfair acts too) to the consumer and that can give you even more legal rights. To find out for sure what your state laws say and what your rights are, you should talk to a Consumer Law attorney near you. Contact your local attorney bar association and ask for a referral to a Consumer Law attorney. Or you can find one on this free national list of consumer law attorneys on this web site page here: http://www.ohiolemonlaw.com/ocll-site/ocll-locate_local.shtml.