JALLEN4
OHIO
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Joined: 10/02/2003
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This is not a unique situation and as vehicle sales slow, will happen more often. Cash flow and contracts in transit are a complicated part of dealership operations and even well funded dealers are sometimes technically out of trust on the floor plan. Some dealers are into this position deeper than they can recover from before they are totally aware of their position. Most often it is not a criminal plot to steal money but simply a failing business.
There are steps the consumer can take to protect their interests. When paying cash, demand the title or MSO at the time of payment. When financing, ask for a copy of the MSO or title be given to you that has been assigned to you and notarized. When a trade with a pay off is involved, ask for a copy of a completed check be given to you made out to the lender you owe. Follow up within five business days with that lender to verify they received that check.
The good news in this process is that in most cases the consumer does not ultimately suffer a loss. In most cases the problem is worked out between the dealer the bank and the floor plan provider.
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4gone
Mass
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Joined: 12/07/2006
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BWhite - That was the place. I heard that the former owner of this dealership was later working as a finance manager for another dealer and also selling home mortgages. He should be wearing an orange jumpsuit and picking up trash on the side of the highway.
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tom_kat
way upstate new york/lake george area
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Joined: 02/28/2005
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we had a car/truck dealership near by close its doors and shut down about a week ago,its going to get a lot worse before it gets better.
1985 Class A Holiday Rambler Imperial 33 +1979 Class C Holiday Rambler Statesman 1000 = 24 ft
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Herewego
Larry Cad drives the ACORN Express!
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I used to do trust audits in the mid-1980's for the bank I worked for at the time. I remember a GM dealer here locally taking folks for tens of millions in the Port Jefferson, NY area.
JAllen...Happening quickly before you know it is one thing, and you're correct, as I've seen it happen. However, storing the sold units to make it appear as they have not been sold to get through your trust audits is a "knowing" thing.
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bullydogs1
New Jersey
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Joined: 06/26/2006
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Hey Jim
Don't you think that if the GE auditors see an RV with plates/stickers/ and stuff in it when they read the serial numbers that something was amiss?
I hope that no one's vehicle got locked up while it was in for service..Been seeing that happen to.....
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dougrainer
Carrolton
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Joined: 06/11/2007
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Most competent Lot auditors for the Floorplanners verify MSO with the unit on the lot AND MILEAGE . The lead time now is you must payoff within 3 days of retail sale. I believe Jallen will remember the 50 million plus ripoff by the Van Conversion company (fake VINs) that nailed GMAC quite a few years ago. Doug
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Harvard
51.37N 114.42W
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Joined: 12/24/2005
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Early this year, we purchased a Park Model from an dealership in AZ and paid cash. The dealer sat on our MCO for 40 some days before he carried it to MOT for registration. We eventually got the registration after some 90 days! Did we worry in the mean time? You bet, we thought we had been taken to the cleaners.
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v8q
Oviedo, FL
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Joined: 04/11/2005
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We had a situation here in Central FL where a place was selling consignment units and pocketing the money...
That got real ugly...
Dave Head
Oviedo FL
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Herewego
Larry Cad drives the ACORN Express!
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Joined: 10/16/2002
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bullydogs1 wrote:Hey Jim
Don't you think that if the GE auditors see an RV with plates/stickers/ and stuff in it when they read the serial numbers that something was amiss?
I hope that no one's vehicle got locked up while it was in for service..Been seeing that happen to.....
Hey Stu!
It's an old trick, and requires effort to CONCEAL the fact that the units have been sold. Also usually ends this way.
I dealt with the owners son when I bought my unit in 2004. Was a good experience. Just didn't enjoy the runaround from their service department while I was sick.
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kenbert
Long Island,NY
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I new the original owner Eddie. He had a mostly travel trailer business in Commack,NY. When he sold the business they moved from Commack to this location, a huge lot right up against the Long Island Expressway. Filled the lot with dozens of class A,s. I thought to myself how is this guy going to stay in business, the class A business on Long Island is not that great.
I am suprised they lasted this long. I tried to do business with them when I was looking, but did not like the way they dealt with me. I think they bit off more than they can chew and turned to crime to try and stay afloat.
Ken
95 Georgie boy Encounter 37ft 5.9 cummins DP
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