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Consignment dealer disappears with cars and money

On Behalf of | Jun 3, 2021 | Dealer Fraud

Selling on consignment is a handy way to offer items for sale without the time and hassle of finding a buyer and making the deal. Just about any product can be sold on consignment, including motor vehicles. By signing a contract with a consignment business, a vehicle owner sets an asking price and a date when the contract expires. If the consigner has not sold the vehicle by then, the owner can reclaim the vehicle or renew the contract. However, there is always a risk that vehicle owners will become victims of dealer fraud. 

One consigner in another state is currently facing many questions from vehicle owners who want to know what happened to their vehicles. The consigner deals in high-end classic cars. However, numerous car owners say they received no money from the dealer even after he claimed that he sold their vehicles.  

The mystery deepens 

After a year of waiting for the consigner to sell his vehicle, one man says the consigner assured him he would receive a check for the sale of his classic Chevrolet Chevelle. However, no check arrived. Another customer told the media that the dealer sent him a check for $50,000 for his 1961 Corvette. The check bounced when he tried to deposit it.  

These and other consumers complain that they are unable to reach the dealer, and they have not received their money. Further, they do not know what happened to their valuable property. Authorities say they have received numerous complaints and are investigating the dealer. Unfortunately, this is only one example of the many ways in which consumers can become victims of dealer fraud, resulting in lost assets and financial setbacks.   

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