Apparently, some  dealers are keeping the $7,500 tax credit provided by the federal government for buying a new Volt. The practice is creating a little bit of heartache for GM.

I say, apparently, because of a report earlier this week in the National Legal and Policy Center seems to indicate it might be happening.

In a New York Times blog posting today, Over G.M.’s Objections, Dealers Sell “Used” Chevy Volts Without $7,..., journalist (and friend of mine) Mary Chapman details the issue much more objectively than the Legal and Policy Center's piece.

If it's happening, it's not widespread -- there aren't enough Volts being sold for it to be a big problem. Unfortunately, the story is getting headlines and just feeds the perception that dealers are slimy crooks looking for ways to cheat the customer.

Some dealers have bought new Volts from other dealers and selling them as used -- a standard practice in the industry. The problem is that some of those dealers may be keeping the $7,500 tax credit (which was intended for consumers) for themselves. According to Chapman's piece, the tax code stipulates the tax credit is not for vehicles intended for resale. So if you're keeping the tax credit for yourself, consider yourself warned. Of course, intent is hard to prove.

The National Legal and Policy Center piece also raises the question of whether dealers are selling used Volts with little mileage without informing their customers they will not be eligible for the tax credit. Given the current MSRP on the Volt ($40,280) and the MSRP for the Nissan Leaf ($33,720) why anyone would buy the Volt without the tax credit is beyond me.

Additionally, the writer of the blog seems to think dealers should inform customers buying a used Volt that they aren't eligible for the tax credit.

Buying a new car from another dealer and selling it as used is standard practice -- only problem here is whether the dealer is misrepresenting the "used" Volt as a new vehicle to the customer. If the customer buys the Volt understanding it's classified as used, why should the dealer be responsible for educating the customer the vehicle isn't eligible for the tax credit? Shouldn't that be the customer's responsibility? If he/she doesn't do the research or ask the right questions, isn't that the fault of the customer?

I know "transparency" is a popular buzz word today in the industry, but car buying still is a negotiating process. Why should the dealer tell the customer which questions to ask?

Just saying....