Why won't the dealership turn over the titles?
Brooklyn, New York resident Hugh Webb is in a similar situation. He and his girlfriend purchased a BMW from Auto Emporium and — like Hester — never received a title.
The NYPD towed Webb’s new car because it didn't have plates, which he couldn't get without the title. Angry, Webb said he called the dealership to get answers, and they told him he could pay to tow the car back to Jersey City. In response, Webb threatened to sue for his $2,000 down payment, but that garnered little response.
"They were so nonchalant, like whatever, take us to court. You probably ain't going to see your money for a year or two,” Webb recalled. “So I was like, 'Wow it's like they've been through this before.’"
In response, ABC’s Pradelli drove to Jersey City to interview the owner, Sourabh Gupta, but they were unavailable. Gupta told them by phone to contact his attorney; refraining from providing a contact or explaining why Hester and Webb never received their titles.
"His excuse was the person that the wholesaler he bought the cars from disappeared," Webb told ABC. "He told us he bought three cars worth almost $90,000 or $60,000."
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Explore better ratesThree red flags to watch for when buying a used car
Webb, who did end up suing Auto Emporium, received a $5,000 judgment in October. Hester is still waiting for her court date but is hopeful she'll receive a refund for her down payment. To protect yourself from similar frustrations, here are three red flags to watch for when buying a used car.
Delays in getting a title or proof of ownership
A missing or unclear title is a major red flag. If the dealership can’t produce the title or delays handing it over, it could be a sign of deeper issues like unpaid liens, stolen vehicles or even fraud. Always ensure you receive the title before finalizing the purchase.
The only exception is if you finance the car. It's not unusual for a finance company to hold the title until the loan balance is paid. However, they should provide you with proof of ownership, such as a bill of sale or a copy of the financial agreement, so that you can register the car.
A reluctance to provide the vehicle's history
A trustworthy dealership will provide a vehicle history, such as a Carfax or AutoCheck, which details the car's history, VIN and title information. If they refuse or discourage you from checking the car's history, it’s a sign that you should walk away from the purchase.
An extremely low price
If the car is priced below market value, it could indicate hidden issues with the title or the car itself. If it seems too good to be true, then it probably is.
If you notice red flags like these, don't sign anything. Before finalizing the purchase, research the dealership's reputation and verify the title through the DMV. By being cautious, you can protect yourself from shady car dealerships.
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