L Calabasas & O.C. shut down?

The NSX is one of my favorite cars. I used to have one a long time ago and I always have my eye out for another one. Enjoy it.

 

how do you know what a fair value is these days? prices seem to drop hourly

 

Above, at, or just below the ACV on the note...Dealer that cant reatil the car has 2 choices, sit on the car or pay off the note..Fact is it is much cheaper to sit on the car in terms of interest...I mean 6% interest for 5 years is cheaper then the loss on some of these cars..But then again they had no plan of staying in business...

 

You got lucky. Prices on eBay are still high (IMHO) for this Honda.

 

I understand the concept of "break-even" but isn't the price to a customer irrelevant. It seems that the dealer is on the hook to the manufacturer for the wholesale cost after the car is out the door. Whether or not they can or will pay up looks like a civil matter between them (assuming the "buyer" wasn't "in cahoots" with the dealer).

 

The dealer could not sell the car for less then the ACV without paying the difference on the note or the bank would still own the car, and the buyer would not recive a free in clear title..So to answer your question Tim, the technically could not sell the car for a loss...

 

I think you can sell anything for what ever price you want. If you want to buy a $10,000,000 house and then sell it off the next day for a buck, thats your choice. All that matters is if the lender got paid out in the end. VW and most companies expect to have there monies for cars sold at the end of each month. If not they usually send down an auditor to have a look at the sales for the month in question.

These cars could very well have been sold and have a title issued to the buyer, free and clear. As far as I understand, the owners for the cars cannot be touched. They took advantage of a good deal bottom line. The owners of the dealer will be responsible for the money to VW, not the people who bought the cars.

 

Thus why VW is suing OC Lambo for the $12 million. I doubt they're interested in going after 50 new owners and dealing with the dozens of legal hassles that would ensue.

On another note, does anyone know for a fact that one of the OC cars was actually repo'd by a dealer when it was brought in for service?

 

My guess..is that Lambo OC has insurance....and that by filing a lawsuit (and winning), VW will makeup the loss by getting paid from the insurance company.

Thanks,
UZY

 

When I was in the business from '92-'02, all in highline franchised stores, we did not need a lien release from the floorplan company/manufacturer. It was our fiduciary duty to pay off each car under the floorplan. I am sure this varies depending on the credit/history/relationship between the dealer and the floorplan company/manufacturer. Today, in the mainstream dealership world, if the car is floorplanned via a Ford Credit and the customer finances through Ford Credit, the transaction is done via ACH and the car's floorplan amount is immediately credited. I know the opportunity for the process to be different in a Lambo store is much more likely.

 

It is a fact. Two cars were taken from service from Lamborghini BH.

 

Did they have a title? Were they licenced, insured and plated? If they were, then the dealer cannot hold the car for any reason. If the cars were not titled or plated thats a different story.

The issue of the fraud lies with Lamborghini OC, nobody else. The buyers took advantage of a great deal (obviously knowing something was up, but who knows what line of yard was spun to the buyers by the dealership to sell these cars). Once a car is sold, and the title to the car is transfered over to the buyer, thats it. The dealer is now responsiable for paying off the manufactuer, no matter what they sold the car for. Obviously if the car was stolen, then its a totaly different thing.

 

Criminal behaviour of the insured normally negates policies.

-mick

 

correct me if I am mistaken but don't insurance policies usually only cover negligence?

 

Every policy is different, but they could have been covered if the "fraud" was done by an employee and the owners did not know it was going on. If the owners played an active roll then it would be a criminal act and would be excluded from coverage, if it was even available in the first place. Every insurer is different.

 

Out of curiosity, how can Lamborghini simply void a warranty like this?

 

they can't, do you know what kind of a lawsuit lamborghini will have if they do that

 

The warranty seems like tricky business. If the buyer bought the car "new" from an (at the time) authorized dealer, wouldn't the manufacturer have an obligation to honor the terms?

 

There are people out there with enough money and nothing better to do than take this to court. Besides, if I were a betting man I would put my money on the "poor" guy who had his warranty illegally yanked by VW on the brand new car that he just bought from an authorized (at the time) Lamborghini dealership. He'll likely get enough in damages to cover the cost of his new Lamborghini and then some.

I get your point, though. Most people would be far better off buying a no-stories car and going about their daily lives.

 

I will only add this, about 15 years ago, I bought a car, I got the title, took the car in for service, car turned out to be stolen, (vin had been changed), I lost car, guy who sold me the car went to jail, I lost the money. The laws vary from state to state when it comes to the issue of voiding a warranty, but it can be done.