Tips on Buying Cars: Cash for clunkers, clunker, sticker price

Question
I just bought a car and had negotiated the price on the car to be $17,000 in New York City.

I had a clunker that qualified for $4,500. The dealer was giving a cash back of $1,500.

What they did was add up the $17,000 + $4,500+ $1,500 and an extra $795 for destination and $549 for delivery making it a total of $24,344.The sticker price on the car is $21,040.

They then charged me the tax on the amount of $23,344 of $2,248 Is this legal?

Where is the incentive?

I really felt like I was negotiating in the dark because I did not understand the cash for clunker program.

Answer
Sylvia,

Thanks for your question.  Without seeing the entire buyers order I can't say exactly what the did.  Now, with that being said, if the PRICE you negogiated was $17000, then was that before or after the trade and rebate?  If it was after all of that, then yes I would say that took one over on you.  All you can do is go back to the dealership and see what you can get accomplished and ask to speak to the sales manager or general manager.  

I can't help you out much without seeing the entire buyers order.  

Thanks - JB