My mother went to a car auction back in February of this year. She was looking to purchase a car but was told that the auction was only open to those with dealer licenses, not the general public. The lady at the registration desk introduced her to a dealer who she said could help her in purchasing a car. My mother had a cashier's check in the amount of $4000 which was made out to the auctioneers. She showed the dealer the car she wanted and he made a bid for it. He won the bid but when they tried to drive the car off the lot, it did not work. He returned the car to the auctioneers and purchased two other cars that day (neither of which was choosen by mother). They went to his office after the auction and he told her that he would help her find the car that she had wanted. He said he had another car she could purchase but it would cost an additional $1400. She did not want that car since all she wanted to spend was the $4000 she had given him. About a week went buy and he was not able to find the car that she had wanted at the auction. She asked for her money back but he said that he had used it to purchase the other cars that day. He said he would give her back the money once he sold both vehicles. It's been almost 3 months and he continues to give her the run around. I'm not sure what legal action she can take since the check was never made out to him but to the auctioneers, so I'm not sure how he was able to purchase the cars and still put his name on the titles? What steps can she take next to get her money back?
she made a big mistake. it was not his money to use. i would contact an attorney. when he realizes his license is in jeopardy maybe he will move to repay her
She should contact the Department of Transportation in your state and file a complaint against the dealer and the auctioneers.
My question is this: how was the dealer able to use your mother's money if her name was on the check and it was made out to the auctioneers? The dealer has no involvement in a cashiers' check when their name is not on it.
She should contact the Department of Transportation in your state and file a complaint against the dealer and the auctioneers.
My question is this: how was the dealer able to use your mother's money if her name was on the check and it was made out to the auctioneers? The dealer has no involvement in a cashiers' check when their name is not on it.
I disagree, but won't give you a red dot over this one.
The dealer could easily use the cashiers check because it was already made out to the auction.
The auction is there to sell vehicles and make money, why would they care who actually purchased the cashiers check as long as it was made out to them? It was as if he handed them cash.
At this point, I'm assuming that she has nothing in writing to use to take this guy to court.
I did think of one other option, slim chance it will work if this guy was really out to take her money, but, she could try to locate this "buyer" so she could speak to him in person. In a face to face discussion, she could elude to the fact that she has spoken to an attorney, and unless he gives her a promise in writing as to when she will receive her vehicle or money back, she will proceed with legal action. If he is stupid enough to agree, at least then she would have a written agreement and basically a confession that he indeed owes her something.
It may be a good idea to loosen her standards on a vehicle if he offers that instead of the money. At least she will have received something, which is always better than nothing.
Most cashier's check need to be filled out to show who is making the payment; the mother should have put her own name on it. If she did, the auction should never have accepted it as it wasn't from a registered dealer. If she didn't, then the dealer is guilty of theft, not to mention abusing the auction's "dealer only" policy because they essentially let their customer chose and purchase the car that they wanted; that was why I recommended filing a complaint with the DOT. The dealer is not operating legally on either of these situations.
She should have some type of proof that she is the party who actually purchased the cashier's check in the first place; that will show that the dealer did in fact take her money and gave her nothing in return.
One other thing I just thought of: it matters who pays for the vehicle, because dealers are exempt from sales tax. If they took a non-dealer's money and didn't charge tax on the vehicle purchase, then that's a whole 'nother can of worms that they just opened.
One other thing I just thought of: it matters who pays for the vehicle, because dealers are exempt from sales tax. If they took a non-dealer's money and didn't charge tax on the vehicle purchase, then that's a whole 'nother can of worms that they just opened.
All the dealer is required to do is transfer the title. Some states require the title to be transfered to the dealers name before it can be re-registered, some do not, and allow the dealer to transfer from previous owner to the new owner without putting the title in the dealers name.
The person who licenses and registers the vehicle will pay the tax, no matter who it is.
Assuming she still does not have a car, perhaps she should try and work out a deal on one of the cars he has ??? Also consider recording the converstation about him using the money. ( assumming ok for one sided recording in your state) ** also where recording is not allowed in criminal, they are allowed in civil in some states also)
But in the end she will have to sue him. File a complaint against him with the state licensing department.
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