A dishonest used car dealer?


#1

Imagine that!


#2

One local dealership that is part of a large multi-line dealership group recently got caught selling used cars, collecting money from buyers, never handing over the car or title , then selling it to someone else. They would sell the same car to three or four buyers, collect payment from everyone but the car and its title never left the lot. The buyers were all poor and lacked the education and resources to effectively contest such fraud and get their money back. Now the state Attorney General’s office is involved. Their new cars sales tactics are similarly crooked. They are the type who give all car sales people a bad name.


#3

wow, the only reason the state got him was because he didnt pay sales taxes for those cars he didnt sell.


#4

To keep it balanced so to speak, many other types of businesses do the same thing. A local clothing store and an office supply store in my area did the same thing not many years ago.

Regarding car dealers, here’s a couple that might get a chuckle or two. One dealer was selling new cars and not paying the bank under terms of the floor plan. The bank was continually stalled about doing an inventory until the dealer relented. The bank rep came around and yep, all cars were present and accounted for including the ones that had been sold.

This dealer had put pressure on every customer who bought a car to bring it in for a free oil change service and detail at his expense. The customers were then given rides to work or back home. The dealer then removed the license plates and parked them in the rows with other new cars with the bank rep being none the wiser after checking the VIN and moving on to the next…

Another dealer kept stalling an out of state bank that was carrying his floor plan. The dealer of course was selling the cars and keeping the money. Eventually the bank said no more; a rep will be there on such and such a date to count automotive noses.

When the rep showed up he found the dealership gutted. Every car had been sold to dealers in other states. All of the shop equipment, office furnishings, computers, and everything else was gone.
This dealer even went so far as to remove every single light fixture, the breaker boxes, and wall outlets; apparently sold in bulk to someone. Speaking of chutzpah…


#5

Only $220,000? Rollie, the guy that screwed me on my transmission was into the state for $500,000 for sales tax payments. One of my issues was that he manipulated the parts and labor list to increase the sales tax collected, since tax is paid on parts but not labor. I’m sure he was just trying to provide a little bonus to the state. Can’t believe the guy is still in business.


#6

The sales tax perp looks like a pussycat compared to the guys pictured beneath the article. Those are some real winners.


#7

We have no sales tax. However. When we try to start a small business like anywhere else if you can’t work 25 hours per day you have to hire an employee. You are now required to pay them at least minimum wage plus try to keep up with their federal and state taxes, unemployment insurance, social security/medicare, disability insurance, and whatever else the federal, state, and local government can come up with. The car dealer is of course a thief as they received the money but “forgot” to pay the sales tax.


#8

In Mississippi sales tax is a very simple tax to deal with and of course the money isn’t from profits. But a small business here does have all manner of taxes and fees that require an outrageous amount of time. Often the time to deal with various government taxes and fees is far more of a problem than the actual tax or fee. The Mississippi Department of Revenue once threatened to close my shop due to my overlooking some unemployment fee that totalled $14.00 including penalties and interest for 6 months.

Of course, if I had failed to mail the IRS the taxes witheld from employees for a few years there are several firms advertised on right wing radio stations that would quickly settle the debt for 25c/$. Those companies might advertise on liberal format stations also but there aren’t any in this state so I don’t know.


#9

Gosh is that why they inflate the trade in and car price call it a numbers game and I get stuck for more sales tax they do not pay? @“Rod Knox” no liberal stations? ya know there was a guy who got a gig until they found out he signed the Gov Scott Walker recall petition, as somehow the recall petition signatures were posted online for a while. He lost his job, I no longer get republican flyers, be careful, you might get written off the list for being an npr listener.


#10

He’ll be back in business as soon as he gets out. His sentence was two years? Let’s see, that means he’ll be out in six months. Or less.


#11

MB,not around,you have to serve at least 85% of your sentence and that is if you dont lose your “goodtime”,the prison system really needs a vast overhaul,more then a lot of junkers on the road.


#12

I agree with that statement 100%, Kevin.


#13
you have to serve at least 85% of your sentence
Is that 85% "time inside" or can parole count towards it, too? When you're "on parole," you're still "in the corrections system," but most don't realize that.

#14

This guy would classify as a “non-violent offender.”

Lots of talk about letting out non-violent offenders to ease up on the prison system overload. Generally they are talking about drug users that were jailed for possession, but I think we all agree this guy needs to spend some time in lockup.


#15

How the law and “truth in sentencing” works is primarily dependent upon the state the crime is committed in. It varies wildly from state to state.


#16

Dishonest used var dealer… That is just s dog bites man story.


#17

I’m by no means defending all dealers but can make the point that many dealers are not as bad as portrayed. Odometer tampering should be dealt with harshly so those types are crooks.

A dealer has a row of 125k miles cars out there all procured as trades or bought at auction. When a problem (or multiple problems) pops up after purchase many consumers will swear the dealer “knew it was a Lemon” and will accuse them of being a crook to everyone in their 'hood and outlying areas. That’s not likely the case in most situations; it’s simply a high miles car exhibiting a problem; or plural.

Little is ever said about the fraud perpetuated on dealers which include doctoring cars to cover up issues, committing fraud on their service departments, or in the case of dealers who offer a 72 hour return no questions asked transaction; swapping parts on a just purchased car and returning it for a full refund.

A phrase an ex-boss of mine used almost weekly; “The general public taught me everything I know”.


#18

How about this one? I saw a dealer’s as in the paper for an MG Midget about 10 years ago. The price was $700, but the ad did say that it needed some body work and a clutch. I went down to see the car. The salesmen were with customers, but the woman who is the business manager gave me the keys and told me to go have a look. She said that if I could get in the car (I am over 6’2" ) they might just give it to me. I did get into the car and started it up. She then came out and said “If you can’t get out of the car, you’ll have to buy it”. Is this called bait and switch?
Actually, this has been a family owned business since the mid 1920s. Initially, it was a Hudson agency, but with the demise of Hudson, the dealer now,just sells used cars. I did buy a 1993 Oldsmobile 88 from the dealer back in December of 1995. It turned out to be a great car. I took it to my independent shop for a prepurchase inspection and my mechanic asked where I got the car. When I told him, his reaction was “I don” t need to check the car. That dealer doesn’t sell junk". Isn’t that a great reputation to have?
Incidentally, I did, with some difficulty, manage to extricate myself from the MG. The rust was too extensive even though the price was right.


#19

Qouting @Triedaq

“I did, with some difficulty, manage to extricate myself from the MG.”
Obviously, otherwise you’d be posting from the MG.

My problem with the Midget, aside from the rust issue, is getting my size 14 feet in and out of one. It was easier when I bought my MGA, which is larger than a Midget, than it is now 48 years later, almost to the day.

And yes, there are some honest used car dealers just as there are honest lawyers, transmission shops, and maybe even politicians. I know some of each. It’s the bad ones that cause them all to be painted with the same brush. There are also dishonest business men in other walks of life.


#20

@“MG McAnick” I also have a size 14 foot and since my foot is narrow, I need a AA width. I know that II have no business in an MG Midget at my age and size. However, I keep thinking about owning either the Midget or an AH Sprite. I would really like the Bug Eye AH Sprite. I suppose I could go modern and buy a Miata, but the Miata doesn’t have the appeal for me that the MG Midget or AH Sprite has.