Car Dealer Closings – Consumer Protect Yourselves
Posted on September 24, 2008
Filed Under Consumer Protection
In an announcement that was expected by many in the automotive industry, Bill Heard Enterprises shut the doors on all of their locations today. They have been facing multiple lawsuits and actions from attorney generals in Georgia and Florida over the past couple of years and most recently lost their inventory financing.
With the closing many consumers are left wondering what they must do to protect themselves. Some problems that they may experience can be financially devastating for them if they recently purchased a vehicle from a Bill Heard store.
- Trade in Payoffs – If you recently traded a vehicle with a balance at one of their locations you need to follow up diligently to make sure that the funds are delivered to your former lien holder. Nothing would be more devastating to find out that you owe a balance on a car not in your possession.
- Extended warranty problems – Some extended warranties are underwritten by the dealer themselves. If your extended warranty is not through the manufacturer you should contact the company that administers it to find out who is responsible for the claims. If they cannot give you an acceptable answer cancel it.
- Unapproved loans – Bill Heard Enterprises is notorious for participating in a practice of “spotting” customers. Spotting means they get consumers to sign contracts without having a loan approved first. If they informed you when you signed your contract that they did not have a hard loan approval you are in a car possibly on a bailment agreement. Look at your paper work and see if one is included in it. If so call the lender directly to see if they funded your loan. If not make sure you take the proper steps to recover any down payment you have made and do not deliver a trade title until the loan is funded by the lender. Stop payment on down payment checks if they have not cleared yet or you gave a hold check. Sort it out after the loan is funded or get out of the car deal.
These are just some of the issues consumers may face if a dealership is closed before a car deal is finished. I have witnessed this before even at dealerships I have worked for.
If you have any other suggestions be sure to leave them in the comments below.
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