Dealers Getting Called Out For Going "Out Of Trust"

By: Christine Kennedy
By: Christine Kennedy

The Department of Motor Vehicles, license and theft bureau says there's a disturbing trend happening to car dealerships in the east that's prompted them to close down dealerships and file charges against the dealers.

It's called going "out of trust", which means, the buyer never gets their title within the 30 day time frame.

It's happening more and more, according to inspectors, who say, since the dip in the economy, 50 car dealers are falling out of trust.

In those cases, inspectors will shut down a dealership or work with them to make sure the buyer can stay on course and on the road.

50 dealerships in the state have been "out-of-trust" with more than 624 victims statewide. So far, the DMV says it's helped 195 of them.

One dealership that was cited was Hardy Auto Sales in Kinston.

Other car dealers that have been cited by the DMV include Kia of Greenville, Chuck Ball Auto Sales in Ayden and several dealers in Goldsboro and Kinston that are now out of business.

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  • by Car Sales Location: Greenville on Jun 19, 2009 at 11:57 AM
    Not ONE DAY goes by that there isn't some group, church, organization, students, etc. etc. etc. at my dealership asking us for money. NOT ONE DAY GOES BY!!!! And more times than not, we give them what they want. So all you people out there talking smack about Car Dealers...And yes IN THE CAR BUSINESS, there's never been a more true statement than "buyers are liars" that's for sure. If I had a nickel for ever customer that lied to me...geez.
  • by In the biz too Location: Greenville on Jun 19, 2009 at 11:48 AM
    It could happen to any dealership, but I would be more weary of small used car operations. The big franchise boys who have been in business a long time on the blvd. are your safest bet even though the Kia boys were on the blvd. too at one time.
  • by r Location: n on May 14, 2009 at 06:15 PM
    Ha, Ha, Ha, ha, Car Dealers are like preachers...
  • by I Don't Understand Location: Greenville on May 14, 2009 at 12:47 PM
    Thanks pee dee for the explanation. I didn't see your post before I asked my question.
  • by pee dee Location: jacksonville on May 14, 2009 at 12:34 PM
    Simply put, they are selling vehicles that they do not have titles for.
  • by Sam Location: Williamston on May 14, 2009 at 08:18 AM
    To IN THE CAR BUSINESS, I do hate it for you on that one, and know that car dealerships normally do good deeds to the community. When you said that the buyers are the ones that lie, the lies go both ways. Its just like politics. As far as furniture in the house and clothes, that 100% to 400% does sound excessive. If it was marked only half of that, maybe some of the high up executives there would not get by so much with their white collar crimes.
  • by I Don't Understand Location: Greenville on May 14, 2009 at 07:01 AM
    Could someone please explain this in terms a simple person (like me) can understand?
  • by IN THE CAR BUSINESS Location: PITT COUNTY on May 14, 2009 at 06:56 AM
    I work in the car business, and its really a shame, because the average profit on a new car is 8 to 10%. A used car is 10 to 15%. The furniture in your home and the clothes on your back is marked up as much as 100 to 400%, and we get all the bad reputation. Dealerships give so much money to the community (youth ball programs, church donations, schools, etc), and all we get is a bad reputation. It is really a shame. We find in our business, that our buyers are the ones who lie to us, not the other way around.
  • by pee dee Location: jacksonville on May 14, 2009 at 06:54 AM
    I might be able to explain. When a car is traded in, the dealer has to pay off any money still owed on it. Once it is paid, the dealer gets the title. When they re-sell the car they issue the title to the bank it is financed with. What is happening is the dealers are not paying off the car immediately when traded in. They are trying to re-sell it quickly so that they can use the banks money to pay off the vehicle instead of their own money. When they do this there is a long lapse in the exchange of title between the dealer and the bank and the dealer is considered "out of trust". That is how I understand it, but I may be wrong.
  • by Cindi Location: Simpson on May 14, 2009 at 06:52 AM
    I have bought 5 vehicles off the lots and never have I had any problems.I have only good things to say about car dealeships in NC.You are suppose to have a little "common sense" when you walk into ANY business,you know!
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