Folding car dealers stick buyers

[Mark_888]

Interesting article about what happens when a dealer goes bankrupt before a transaction is completely done.
http://www.denverpost.com/breakingnews/ci_11605403

I purchased my Genesis 3 weeks ago and still waiting to hear from the state that the dealer has turned in the registration papers. It is unlikely my dealer is going under (I hope), but I know these are very tough times for auto dealers.

 

[realpix]

Interesting article about what happens when a dealer goes bankrupt before a transaction is completely done.
http://www.denverpost.com/breakingnews/ci_11605403

I purchased my Genesis 3 weeks ago and still waiting to hear from the state that the dealer has turned in the registration papers. It is unlikely my dealer is going under (I hope), but I know these are very tough times for auto dealers.

Who cares about auto dealers? I care about MY financial situation.

http://cbs13.com/local/folding.dealers.car.2.923931.html

Here is another link on dealers that don't do the proper paperwork and leave buyers stuck with 2 car payments.

For everyone's info North Scottsdale (AZ) Hyundai has went out of business.

I had service work there done a couple of months ago and was told I needed new pads on my rear brakes (2006 Azera 25K miles) - holidays out of town and I came back several months after the service advice.

Went to Larry Miller Hyundai to see about service work (GREAT service department) and found a new Genesis with a shipment on the sticker to N Scottsdale Hyundai - sales person said rumor was they went out of business - haven't driven by the N Scottsdale dealership but will do in the next several days.

So buyer beware. On ANY and ALL dealerships. Even the ones we think are good.

 

[realpix]

Looks like it was virtually the same article. Sorry.

 

[Mark_888]

Who cares about auto dealers? I care about MY financial situation

That is what the article refers to and what I was concerned about. I was concerned about me, not the dealer. However, I would feel bad for a dealer who goes out of business and the effect that has on the employees.

What I was trying to explain is that if I pay for a car and the dealer goes bankrupt before the registration is filed with the state and title is issued to me, then they have the money and I have a car that I can't get a license plate for and that legally does not belong to me and that the bankruptcy court will eventually come looking for. Big problem.

I don't know where you got the idea I was primarily concerned about the dealer if they went bankrupt.

 

[DanTheMan]

That is what the article refers to and what I was concerned about. I was concerned about me, not the dealer. However, I would feel bad for a dealer who goes out of business and the effect that has on the employees.

What I was trying to explain is that if I pay for a car and the dealer goes bankrupt before the registration is filed with the state and title is issued to me, then they have the money and I have a car that I can't get a license plate for and that legally does not belong to me and that the bankruptcy court will eventually come looking for. Big problem.

I don't know where you got the idea I was primarily concerned about the dealer if they went bankrupt.

The bigger issue has to do with trade-in vehicles and whether or not the "promise" to pay off the loan on the trade was actually done before the dealer closed up shop permanently! There was a Mitsubishi dealership in our town a few years back that 'took the money and ran' in that scenario. There was a news clip on TV a few nights back regarding a smiliar circumstance--somewhere in California, I think. Not good for anyone!

Dan :>)

 

[realpix]

That is what the article refers to and what I was concerned about. I was concerned about me, not the dealer. However, I would feel bad for a dealer who goes out of business and the effect that has on the employees.

What I was trying to explain is that if I pay for a car and the dealer goes bankrupt before the registration is filed with the state and title is issued to me, then they have the money and I have a car that I can't get a license plate for and that legally does not belong to me and that the bankruptcy court will eventually come looking for. Big problem.

I don't know where you got the idea I was primarily concerned about the dealer if they went bankrupt.

I did understand your point. Above understood. Buyer beware.

 

[Mark_888]

The bigger issue has to do with trade-in vehicles and whether or not the "promise" to pay off the loan on the trade was actually done before the dealer closed up shop permanently! There was a Mitsubishi dealership in our town a few years back that 'took the money and ran' in that scenario. There was a news clip on TV a few nights back regarding a smiliar circumstance--somewhere in California, I think. Not good for anyone!

Dan :>)

I agree that the issue of the trade-in with a loan balance is a big issue, and that is what is prominently mentioned in the article. But for those who don't finance their purchase, the license and title registration can be an even bigger deal if the dealer happens to go bankrupt.

 

[realpix]

I agree that the issue of the trade-in with a loan balance is a big issue, and that is what is prominently mentioned in the article. But for those who don't finance their purchase, the license and title registration can be an even bigger deal if the dealer happens to go bankrupt.

Sheez - what a revolting development that is. Dealer has your cash and title documents.

 

[Mark_888]

Sheez - what a revolting development that is. Dealer has your cash and title documents.

The dealer has up to 30 days to submit paperwork to the state (in most states). It took my dealer 2 weeks before they sent in the docs (according to them when I asked) and another week before it was processed by the state.

If my dealer had gone bankrupt in-between the time I paid for the vehicle and signed over my trade-in title to them, and the two weeks it took for the the dealer to submit the paper work to the state, I would have been out about $40K in total.

 

[EdVoylesHyundai]

That is all very unfortunate. IMNSHO, once a dealer signs the paperwork stating that they are going to pay off your car, etc..., they should own it the same way you own a car once you sign the papers. If either party fails to pay, the bank takes the car and sticks the "owner" with the bill. If the dealer tanks, that's the dealer's fault, not the bank or the carbuyer and the dealer should be stuck with the bill, not the PO. Somehow, the banks figured out how to go after the previous owner legally (should be illegal) and they are getting away with it.

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[Mark_888]

I got my Genesis title in the mail yesteday from the state, so I don't have to worry about that anymore. Got my plates too.

 

[realpix]

I got my Genesis title in the mail yesteday from the state, so I don't have to worry about that anymore. Got my plates too.

Went by North Scottsdale Hyundai (Scottsdale, AZ is a VERY affluent area) - empty lot - even 1/2 the sign by the road is gone (with name etc).

Loan officer at my credit union who I was discussing this with today mentioned he went by a Suburu dealer one day and it was gone also - matter of days closed up shop.

I get nervous when my money is involved!

 

[ctrcbob]

Passed by my local Ford Dealer today. I always use them for servicing my Continental, plus all my previous Fords and Continentals. Yes, they are still in business, however their back lot is empty, and their front lot only has half the cars they normally have out there. I like their Service Department, but hate their Sales Department. It seems like every time I visit, they have all new personnel in sales, plus they use the "bump up sticker". I think I will visit next week (with the Continental of course) just to see what is going on.