DRIVERS were stunned by news of the sudden closure of new car lots at a group of dealerships – those with active loans feared the worst.
Without a point of contact or a form of payment, drivers assumed their cars would be taken away.
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American Car Center, a dealership group with multiple dealerships in 10 states, closed suddenly in February 2023 without warning those who purchased or financed cars from them.
Many drivers panicked because they didn’t find out until they logged in to make an online payment through the dealer group’s payment portal.
LaToya Fields was one of those drivers, who purchased her car from the company in 2019.
She tried to make loan payments and was afraid she would lose her car without a reliable way to make payments.
“It’s very frustrating because I have no idea what’s going on,” Field said. WSPA.
She was especially frustrated by the lack of warnings and additional information for drivers with loans.
“We don’t know how to pay the bill if they come to pick up the car. We are totally out of the loop,” she continued.
To add to the confusion, a deeper dive into her paperwork revealed that she had leased the vehicle and made payments beyond the lease agreement.
Therefore, she was interested in purchasing the vehicle but had no idea who to contact due to the closure.
“I was told it would be paid off in three years, but it ended up being closer to four,” Fields said.
“But now I don’t know if I can buy it at the end of the contract. I put the money into it; I want my title and I don’t know who has my title or how to get my title.”
NEW UPDATE
Anyone who bought a car last year at the American Car Center can file a complaint with the Department of Motor Vehicles.
Customers who purchased a car from the dealership can also file a claim with the bankruptcy trustee.
Westlake Portfolio Management took over servicing of American Car Center’s accounts last March.
Tips for dealerships
Here are some expert tips when buying a car from a dealership:
- 1. Set your price: Make sure you have calculated your monthly budget before going to the lot. You must include your car loan payment, insurance costs, fuel and regular maintenance.
- 2. Research: Make sure you know which cars you’re interested in testing before you get to the dealership.
- 3. Pre-approval: Secure financing before going to the dealership. Dealerships may offer a better interest rate if they are competing with an outside bank.
- 4. Test: Drive before making any payments. Buying a car will be worth thousands of dollars – drivers should ensure they like the car’s drivetrain, steering and comfort before driving it off the lot
- 5. Haggle: Drivers should always try to negotiate the price. There are so many good cars on the American market – buyers have a strong hand in negotiating prices.
Source: Kelley Blue Book
CONCESSIONAIRE PROBLEMS
Since the American Car Center bankruptcy case, drivers across the country have had problems with local dealerships.
Anna Riley, a driver from San Antonio, Texas, faced a surprising problem after purchasing a Honda CR-V SUV for $31,000.
She then realized she was charged $18,000 in warranty fees and immediately canceled the premium warranties.
Jason Taylor, a Colorado resident, was also shocked by the dealership’s hidden fees when he tried to lease his 2019 Mercedes-Benz.
He accused his local dealerships of charging a dealer and handling fee.
“The lease clearly specifies the lease purchase costs,” Taylor said KMGH.
“It should have just been the residue, plus the $150 fee, plus any official title and taxes,” he continued.
Another driver was told to return his Ford to the dealership just one day after purchasing it due to a contract mix-up.
This story originally appeared on The-sun.com read the full story
