My dealership abruptly closed and I don’t know if I’ll get to keep my car – the payment portal shut down with no answers

DRIVERS were stunned by the news of the sudden closure of a dealer group’s new car lots – those with active loans feared the worst.

Without a point of contact or a way to pay, drivers assumed their cars would be taken away.

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AFP

American Car Center, a dealership group with several dealerships across 10 states, suddenly closed in February 2023, without warning those who bought or financed cars from them.

Many drivers panicked as they didn’t find out until they logged on to make a payment online through the dealer group’s payment portal.

LaToya Fields was one such driver, who bought her car from the company in 2019.

She tried to make a payment towards her loan and was scared she’d lose her car without a reliable way to make a payment.

“It’s just very frustrating because I have no idea what is going on,” Field told local CBS affiliate WSPA .

She was especially frustrated with the lack of warning and additional information for drivers with loans.

“We do not know how to pay the bill if they are coming to take the car. We are just so out of the loop,” she continued.

Adding to the confusion, a deeper dive into her paperwork revealed she’d leased the vehicle and made payments past her leasing contract.

Therefore, she was interested in buying the vehicle out 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,” said Fields.

“But now I don’t know if I’ll even be able to buy it at the end of the lease. I’ve put the money into it; I want my title and I don’t know who even has my title or how to get my title.”

NEW UPDATE

Those who purchased cars last year from the American Car Center can file a complaint with the Department of Motor Vehicles.

Customers who purchased a car through the dealership can also file a claim with the Bankruptcy Trustee.

Westlake Portfolio Management took over servicing for American Car Center accounts last March.

Dealership Tips

Here are some expert tips when purchasing a car from a dealership lot:

• 1. Set your price: Ensure you’ve calculated your monthly budget before going to the lot. You should include the car’s loan payment, insurance costs, fuel, and regular maintenance.
• 2. Research: Make sure you know which cars you’re interested in test driving before you reach the dealership.
• 3. Pre-approval: Secure financing before you go to the dealership. Dealerships may give you a better interest rate if they are competing with an outside bank.
• 4. Test away: Get behind the wheel before making any payments. A car purchase will be worth thousands of dollars – drivers should ensure they like the drivetrain, steering feel, and comfort of the car before taking 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 when negotiating price.

Source: Kelley Blue Book

DEALERSHIP WOES

Since the American Car Center’s bankruptcy case, drivers across the nation have experienced problems with local dealerships.

Anna Riley, a driver in San Antonio, Texas , ran into a startling issue after purchasing a Honda CR-V SUV for $31,000 .

She then noticed that she was charged $18,000 in warranty fees and immediately canceled the premium warranties.

Jason Taylor, a Colorado resident, was also shocked by hidden dealership fees when he attempted to buy out the lease on his 2019 Mercedes-Benz .

He accused his local dealerships of up charging him on a dealer and handling fee.

“The lease contract clearly spells out the costs of buying out the lease,” Taylor told KMGH .

“It should have just been the residual, plus the $150 fee, plus any official titling and taxes,” he continued.

Another driver was instructed to return his Ford to the dealership just one day after purchasing it due to a contract mix-up.