In 2009 I had a customer who "was struggling financially" due to the economic crisis. I agreed to work with him on paying his sizable account balance....until.... We were out for dinner and drinks and he started telling me about the new customized $350,000 car hauler he just bought. Talk about extended cabs, this freaking thing had an apartment behind the driver compartment. Paint job alone must have cost $30k. Next day I sent him a certified demand letter and called him to let him know it was on the way. In his mind, he felt that even though he couldn't pay his bills, his life wants should not be hindered by that. Unbelievably, we continued to do business together and he actually told me that he only does it to people he knows that will let him get away with it. I was now off of the sucker list.
Once he told you he's a snake you should get your owed money and never do business with him again sooner or later he'll burn you and you'll stop working with him when you lose enough money just hope its not so much you have to close down and lose all you have
@@sittingindetroit9204 no you did a good job I understood you got your money he told you he put you on the fool's list I've dealt with some like that I collect what's owed and cut them lose he basically said he'd screw you if he could I don't want or need people like that around me I'd play nice till paid in full and cut them loose
When a friend would ask me for help with money If they had a nicer car than I do or a larger home I would say NO!! I won't help you live above your means!! Sell something or live cheaper!
@@thehentailord6708 Because they probably hired an expensive lawyer that was able to give the judge lip service. Anyone else without high priced lawyer would've gone to jail before breakfast.
Years ago I paid a person to build me some not-too-expensive but unique furniture. After several months of not getting more than half of the furniture from him and hearing that he was falling through on everyone else's furniture he was supposed to be building for them, I told him to just give me back my money on the undelivered furniture. He asked me wouldn't I rather have the furniture, and I said no, so he paid me back what was left that wasn't built. I found out I was one of the last people he paid back before shutting down and disappearing with a lot of people's money and not delivering anything. I was really lucky on that one, I could've easily just lost the rest of my money. It taught me to be a lot more careful about what people owe me.
@@additudeobx Ha! Maybe, but I do know I was one of the very lucky ones. This was way pre-Intertoobs, and I don't even remember how I learned about everyone else's situation. It was a good but expensive lesson. Thx
Sometimes this is just a business failure and instead of 'disappearing with a lot of other people's money' the business has just run out of money and can't afford to continue as its financial model doesn't work ...
Well, the only good news about this story is that the buyers of these untitled "storage containers" will not be "traveling" nor "driving" under admiralty law. LOL.
Here’s one for you: 1981-2 2 Alfa Romeo cars were stolen from the Global Marine Terminal. They disappeared from the US Customs controlled facility where they were being delivered by ship. All goes quiet on this case for 2 years, then one of the cars is being attempted to be registered to DMV in NJ. A red alert is immediately triggered as the insurance company representing the importer maintained the red alert with DMV. As it turns out the 2 cars were garaged half a mile from the dock where it was imported. The thieves were longshoremen working at the facility. The delivering vessel was a “RoRo” (Roll on - Roll off) type. Do, the longshoreman had the keys and drove it off the ship, with a cohort flagging him through the gate and skid with the second car. Other problems with trying to register the cars besides being stolen is that these 2 cars didn’t have proof of legal import (Customs related), there were no safety and emissions declarations for either vehicle so not eligible for registration. The importer can postpone Customs import on the vehicles for several years. As missing vehicles can removed from the inventory listed on the documentation, but notated why.
clip from the movie Fargo, "A flustered Jerry then gets a call from the GMAC, the bank holding company, inquiring about the vehicle IDs he was supposed to send them. Jerry tries to buy more time but the man says he will need the numbers by the following day or he will have to hand the case over to their legal department."
About time. I was wondering when Steve was going to talk about this dealership. I've been reading about this dealership for about 2 months now, thinking Steve will be discussing it any minute now.... any minute..... ah yep any minute.... ah ha mm yep {crickets quietly chirping}.
A hospice company had been ignoring me as far as restitution for rental equipment which was covered by the hospice contract. I went by to ask again for the money…the woman was talking to some customers/potential customers, anyway I barged in and my volume started going up, but I got paid. In Cash! Right Then. I had been quiet and peaceful(for six months)until yesterday. The squeaky wheel got greased!
No vipers in stock. When I bought my Tacoma in summer 2019 - the dealership didn't send the DMV my money for over 30 days. My temp tag was EXPIRED. They sat on the fees they charged me for tag and title, SHADY SHADY SHADY.
When I take possession of a car, the seller must have the title in hand to give me as soon as I hand over the money. Within seconds. Not days, not weeks, not months. In my state, you have to have the title in order to register the car. If you're driving around in a car that isn't registered to you, the cops impound it. If you don't show up with the registration within days, the car is crushed.
I would see this dealership when I travel to and from Vegas and thought I would drop in. Saw the rest report on my local station and was thankful not to have gone there.
For some reason this reminds me of a dealership I worked for that opened a couple satellite dealerships and used floor plan cars as collateral against a loan. They got caught and it ended up being a big investigation.
I used to fantasize about super cars when I was a kid. But once I grew up I realized that they were nothing more than overpriced hair loss or penile compensation devices. But besides that, I guess the lesson here is to never let go your cash before taking all the precautions and making sure everything is legit.
As soon as you sign the used (or new) car order & purchase agreement, the agent for the owner / seller establishes "bailment", or, fiscal responsibility, for what item was consigned for aftermarket sale. The original owner should have ZERO problem pursuing civil and criminal redress. Good topic. Thanks.
There was an antique car broker in NH (Dusty Old Cars) that went bankrupt with similar allegations. They promised very low commissions like 1-2%. Too good to be true. Nashua attorney Michael Askenaizer characterized the business as a ponzi scheme in court filings. They estimate the fraud was in the neighborhood of $3-4 million. I'm surprised that you didn't mention repair costs. Dusty Old Cars regularly kept the proceeds from the consignment sales without paying the owner of the vehicle. He sometimes paid a fraction of the net sales price, after charging for what the customers said were bogus fees and phantom repairs.
Now just how does Covid prevent you from mailing someone the title for the car they bought? I'm REALLY curious if they have anything close to a answer that isn't total non-sense.
If CNC was floating other people's money that only works when you have sales constantly to keep the old floats from getting too old. If sales stop then the floats get super old and obvious. With checks they call it kiteing or floating. With stocks they call it a free ride violation. In this case with cars you could call it a Ponzi scheme.
To be fair, staffing was a major issue during the peak periods... but professional temp agencies exist and it should have been dealt with in a timely fashion. Sadly, it's obvious this dealer would obviously regain some lost respect if turns out they're just sitting on money to maximize interest income while in thier hands. But 16+ months to pay some sellers is a glaring sign that this (still illegal) behavior is unlikely. Anyone wanna go see how much they got on PPP loans?
You can't really blame the Ferrari buyer for the repair costs. Didn't he have the car gone over by a qualified mechanic? For that price he SHOULD have, but greed told him to BUY IT! Unless the dealer put in writing about a warranty, etc. the guy simply outspent his checkbook.
The IE is the pit of southern California lol, I tried to buy a car from them years ago and they were impossible to even get a hold of. Glad I stayed away.
California dealer here. Starting Jan 1st, 2021 California DMV collects sales tax at the time the title and transfer paper work is presented to the DMV. These guys that bought cars never got titles so sales tax was never paid. Thom is going to do serious time.
Hundo laying beneath the new US Express tractor trailer, almost perfectly fit under the trailer. Confirmed in next video as the shelf can be clearly seen under the trailer and the hundo is well hidden elsewhere.
Reminds me of the plot for the original "Fargo" movie. William Macy's character's financial schemes at his car dealership start falling apart, so he arranges to kidnap his wife in order to coerce her father into paying ransom to bail him out.
The California Franchise Tax Board(FTB) is more tenacious than the IRS. You can bet that the FTB is looking over the DMV's shoulder looking for where this money went. If the dealership didn't remit the sale proceeds to the owner, then the dealership, by not remitting, will be taxed by FTB for the ill gotten gains. Just as the selling owner might have to pay capital gains on the reported sale price of the vehicle. The FTB is relentless in their pursuit..... I pity anyone coming under their inspection.....
@@sp1nrx I know this intimately! I moved from California to Texas in '97. In 2000 California FTB sent me a tax bill for income taxes I allegedly owed them from 1998 and 1999! They had extrapolated how much I had made from past 540 filings and billed me that amount, even tho I no longer lived in California. I sent them letters explaining my move in '97, along with accompanying paperwork proving my Texas residency starting at that time, to no avail! for 2 years I received invoices and threat letters from them, each year added interest and penalties to the total. When it hit $13K FTB made the mistake of putting it on my credit report. I contacted the Texas Attorney Generals office, sent them all the paperwork, and the matter was resolved within 6 months. The credit reporting agencies received a letter from FTB reversing the report and the matter was dropped. Never got an apology from them tho......
I've followed the CNC Motors soap opera or A Fool and His Money Are Soon Parted. Dozens of stories, dozens of red flags, but greed drove people to hand over $100k cars spending less time researching dealership than $5k of livingroom furniture.
One guy consigned 4 cars to CNC & got 1 back. The other 3 he gave the titles to CNC before they sold so now he has no title, no money , & no cars. Out over $800k. Many of these people are not rich. They saved up for 5-10yrs to buy their dream car & then have no title on cars that need expensive fixes or did upgrades before getting the title & have to hide the car to prevent repo.
I bought a cheap used Mazda at CarMax in Austin, Texas, several years ago. My car got totaled by a road rager who then lied to police, one month before I was set to move to Florida. CarMax told me when I get to Florida that I should give the registration place CarMax's phone number, and CarMax would then fax the title to them. But when I went to the registration place, CarMax faxed something that was not the title! I spent hours on the phone with CarMax, and they finally admitted they lost the title. After a couple months, my temp tags were expiring. CarMax promised to FedEx new temp tags to me, but then they did not. So I could not legally drive the car I paid cash for. After many more hours of angry phone calls with CarMax, CarMax finally agreed to take the car back in trade for a different car. At one point, I asked CarMax, "I paid cash for this car. Who is the owner of it?" The CarMax woman refused to answer that question. CarMax was terrible. I will never shop there again.
Steve, In the case of the "police book", the word 'police' is being used in its broader, original, and arguably more formal, definition of - "to maintain in good order, to clean, or to remove that which is undesirable by the populous" This formal definition is were we get our colloquial definition of law enforcement (those charged with maintaining good order by the populous) as "Police". Hence a book that maintains the "good order of inventory" (cars, boats, or other items "of interest of the populous" - e.g. taxable) and is inspected by the government, or populous in general or by agent, have traditionally been referred to as a "police book". Another common example of using the broader definition of 'police' is the term 'police call' which is used to describe a time when a group of individuals careful comb and area to remove trash and other items not indigenous to the area. For example a group of Boy Scouts walking their campsite to make certain all trash is picked up before they leave. The same is done in the US Army, both for field camps, but also for the daily garrison grounds of a unit. As you can see, the word 'police' is still used in many forms besides dealing with law enforcement, albeit enforcement is overwhelmingly the most common and colloquial use of the word in most European founded cultures.
You can't buy certain supercars without connections and personal provenance. Plus, in general, used cars are cheaper. My Ferrari cost about $85K when a new one was over $140K (long time ago) but I couldn't have bought a new one anyway, even if I could have afforded it.
When I sold cars or RV's for clients the only way I would do it was I sell the car BUT the owner has the title to their car until it sells then the come and sign title over to new buyer..I'm not a dealer I do this on the side but it's the safe way for EVERYONE involved! I would not turn lose of my title until I was paid for my car! These sellers were not savvy for not holding onto their titles until they were paid!!
18:47 Yep, there's a problem here... Where'd the money go? It got paid to a contractor and construction firm to come in and install a huge deck on the back and down the sides of the consignor's home and to dig a huge hole where a swimming pool will be next week.
One guy got his car back, and he claims that one of the wheels fell off as he was driving it home. This happened after they supposedly told him that they were concerned about his safety and would go through the car to fix any issues. Check out Matt Salvo's videos.
CNC owner thought he was selling Bentley's in Beverly Hills, dumped so much $$$$$$$$$$ into that building, you could not miss-it driving past on fwy. a regular Taj Mahal, prior building was probable 1/20 the size.
I seea nice way to get around this. Don't know if the type of product i will mention next exists yet, and i would be really surprised if it doesn't. So, use a smartphone unlockable relay thingy to the engine starter. This way even if the consigned middle man seller has they keys, they would have to contact you, the owner to unlock it and thus allow the vehicle to be driven. If they bypass it then they are liable for attempted theft. Som this way the current owner knows when the vehicle will be test driven and hopefully sold, so that he can come in with the title and finish up paperwork. He gets his money then and there from the new client. All is closed with the 3 parties involed getting their due from the contract
I'm naive as to how car stuff works. If I have a car that I bought for cash.. and I want to sell it to a dealer... Do I give the dealer the title? I would think so. So a buyer would be able to go to the dealer, see a car on the lot and say "I like that, show me the title" and they could actually just find the title in their files, right?
Here's what I learned from watching a number of similar videos. Yes, if you, a private party, sell the car you own free and clear to a dealer, you would hand over the car, the keys, and the title (pink slip). Unfortunately, in this business it is never this clear, cut and dried. Most dealers get their inventory (the cars) from trade-in auctions. They buy several at a time, and all the titles are transferred electronically. At this point, the VIN is checked for stolen vehicle and lien info. There is a lot that goes on behind the scenes involving the dealer buying the cars, the auction company (like Manheim or Coparts), leasing and finance companies and the state DMV. Usually, everybody does their job like they are supposed to, but a large part of it is info being shuttled from data base to data base. Because everybody is just looking at their own part of the transaction, sometimes a step is missed or somebody does their job wrong. Sometimes, fraud is involved. The problem is that the last person at the end of this chain, the retail buyer, ends up holding the bag when something goes wrong, and if usually takes a lot of money and time to straighten things out.
@@isallah1kafir196 Learn 2 English. Forsaken means abandoning or shunning. Meaning, as soon as Doug found out he dropped them like a bad habit. As was right and ethical. Why even reply dawg.
Thank you so much for all the good info in this case. I had no idea about the 'police book'. Almost all commenters on this case are yobbos parading their ignorance. You really do learn new stuff every day.
What a great story….sad….but interesting. This sounds like one of those stories where there may be no solution. We will see people who had a car that got sold but they got no money for it. There will be someone who paid for a car who either is forced to return the car but gets no money back. And there is likely a company that will claim bankruptcy that benefitted from the money but can’t pay the debt (which was likely the condition they were in before the cars got sold in the first place and why they did not complete the transactions). What makes me cringe the most are those who are complaining because they bought a very expensive car with serious and expensive needed repairs. THOSE people are idiots and perhaps deserve what they got. I cannot imagine buying a car for tens of thousands of dollars knowing that changing the plugs would be a major expense and not having a qualified mechanic look over the car very carefully in order to identify potential problems…..especially since most used cars have no warranty. They were asking for the problems they inherited and don’t have a legal leg to stand on regarding repairs…..now clear title is another story.
In layman's terms, they are stealing. Imagine if they were handling high-end drug deals (vs. cars), and stiffed the consigner or failed to deliver to the buyer. The problem would have been solved, very quickly, in a dark alley. Boom, out of business. Even now, I wonder where such large sums of money have gone....
On top of all of this why are these buyers paying 250k for supercars and not have the computer data pulled to find out it needs a $5,000-15,000 clutch or transmission linkage or any other KNOWN major maintenance factors for super cars.
Very similiar to the story of Bobby Khan, his dealership was Emporio Motors. He used the money to live a high roller lifestyle. A certain You Tube person consigned a high $ car, Bobby sold it, but never paid the the well known you tuber for it.....
Sounds like the Emporio Motors/Bobby Khan scandal a couple years back. Superspeedersrob has a few videos on the subject since he got screwed trying to sell a Ferrari 458.
This makes me beyond angry. I dealt with a similar situation to this with a big 3 new car dealer. My scumbag was taking trade ins and reselling without paying off the original lien. Couple months after trading I started getting notices of late payments. The dealer swore it was handled. My friend at the bank advised me to make the payments and when scumbag eventually paid they would send me the amount of overpayment. It never happened. Luckily I only owed a couple thousand bucks. I got the title but never the truck back. There's no history of it since that I can find. Scumbag was eventually charged and promptly slapped firmly on the wrist and released. It's been years and still makes me mad to think about. I haven't traded a vehicle in since.
When someone is buying/ordering a new car, they usually trade in the old one and use it as the down payment, or just because it is an easy way to dispose of the old car because they don't want to deal with the buyers, and negotiating the final price. BUT, if they took the time to check what their current car sells for on a lot or privately, they will find out that the dealers trade-in value is usually 50 % to 75 % of what they could sell it for. Granted the dealer has lots of overhead such as rent, hydro, insurance, and any repairs that might be needed before they can sell the car. You as a private person can sell it for the same as a dealer would, only in your case it is an "as is" sale. No repairs, no detailing, no overhead (depends on your circumstances - such as on or off street parking, nobody to pay commission to) and you keep more monet you can apply to reduce your new car loan. Just predetermine the lowest price you will accept and add to it so the buyer can "negotiate" a lower price than your asking price. You get what you want and they think they got a deal. The buyer can then use what they saved for the tow truck and repairs. Sell privately or run it through a reputable auction service. Then attend that auction to view what it sells for, and they offer a reserve price.
Possible reason for "police" book. Could be from before states got heavily involved that the local police wanted to know that they could look for stolen property. Similar to lists that pawn brokers keep.
Any time one is dealing with a new or used car dealer or broker, just assume that somehow you're going to take it up the rear end. Bring your own surgical lube, you'll thank me later. There may be a few relatively honest dealers out there, but that would be the exception and not the rule. I'd rather have a colonoscopy without anesthesia than buy a car or truck. I've been intubated not once, but twice while fully conscious and found that more pleasurable than buying a vehicle.
@@alexm566 what are you talking about? You said “Doug does all his videos [there].” He doesn’t. I don’t know wtf you’re talking about with respects to him being a hostage.
So this made me do some thinking. Please answer. I seriously don't know. If the broker is a business in the industry which routinely sells vehicles or even just brokers the sale; has the authority to sell the vehicle or enter into an agreement to sell by a specific power of attorney outlined in a contract; has apparent and actual authority to do the above; and then deliver a bill of sale, is there a rebuttable presumption of ownership? In Oklahoma a person can petition the court to issue title by claiming rightful ownership through a civil action. So if titles were not delivered to the purchaser but a contract or bill of sale was delivered, that could show proof of ownership for a court to issue title. Just curious or am I off my rocker.
Prolly varies from state to state. Seems to me what you are describing is a way for the buyer to legally force the issuance of a title based on the fact that he fulfilled his side of the transaction in good faith, including paying the purchase price. But if that purchase price money was not delivered to the seller, then that person will be forced to suffer the loss of both the car and the money, unless they sue and collect from the broker.
More than likely CNC motors was probably financially upside down and by the time they cashed the check the bank acct was already in the negative. I don’t think a once very reputable dealer just decided to start scamming everyone but they certainly have a huge mess
In addition to all of the other shenanigans, is it possible that the Car's 'in stock' were being treated as 'assets' to underwrite loans to the Dealer in order to provide cash-flow, etc ... ?
In 2009 I had a customer who "was struggling financially" due to the economic crisis. I agreed to work with him on paying his sizable account balance....until.... We were out for dinner and drinks and he started telling me about the new customized $350,000 car hauler he just bought. Talk about extended cabs, this freaking thing had an apartment behind the driver compartment. Paint job alone must have cost $30k.
Next day I sent him a certified demand letter and called him to let him know it was on the way. In his mind, he felt that even though he couldn't pay his bills, his life wants should not be hindered by that. Unbelievably, we continued to do business together and he actually told me that he only does it to people he knows that will let him get away with it. I was now off of the sucker list.
It's your choice to continue doing business with this guy. I'd just as soon not have people like that in my life.
Once he told you he's a snake you should get your owed money and never do business with him again sooner or later he'll burn you and you'll stop working with him when you lose enough money just hope its not so much you have to close down and lose all you have
@@youtubehatesfreedom1870 I did a poor job in explaining what happen after the demand letter. He did pay in full and all future orders were COD.
@@sittingindetroit9204 no you did a good job I understood you got your money he told you he put you on the fool's list I've dealt with some like that I collect what's owed and cut them lose he basically said he'd screw you if he could I don't want or need people like that around me I'd play nice till paid in full and cut them loose
When a friend would ask me for help with money If they had a nicer car than I do or a larger home I would say NO!! I won't help you live above your means!! Sell something or live cheaper!
I would think the fact that they are used car salesmen explains everything in this video.
Even so they should be able to deliver the title.
Agreed .why does this even need to go to court arrest the scammers
I like that one.
@@thehentailord6708 Because they probably hired an expensive lawyer that was able to give the judge lip service.
Anyone else without high priced lawyer would've gone to jail before breakfast.
@@dsandoval9396 yeah that makes sense
Years ago I paid a person to build me some not-too-expensive but unique furniture. After several months of not getting more than half of the furniture from him and hearing that he was falling through on everyone else's furniture he was supposed to be building for them, I told him to just give me back my money on the undelivered furniture. He asked me wouldn't I rather have the furniture, and I said no, so he paid me back what was left that wasn't built. I found out I was one of the last people he paid back before shutting down and disappearing with a lot of people's money and not delivering anything. I was really lucky on that one, I could've easily just lost the rest of my money. It taught me to be a lot more careful about what people owe me.
I guess, in a way..... you were the straw that broke the Camels back.......
@@additudeobx Ha! Maybe, but I do know I was one of the very lucky ones. This was way pre-Intertoobs, and I don't even remember how I learned about everyone else's situation. It was a good but expensive lesson. Thx
Sometimes this is just a business failure and instead of 'disappearing with a lot of other people's money' the business has just run out of money and can't afford to continue as its financial model doesn't work ...
This explains why we haven’t seen Doug DeMuro driving cars from them recently.
The owner of CNC is going to bail out like DB Cooper with a bag full of cash.
DB cooper wow thats a reference that shows your age these new kids are like who?
@@MrGlen6911 I'm a young 51
Figured @JC I’m 49 if you ask any young kid about DB Cooper they ask like the car? Lmao
@@MrGlen6911 Exactly
How young i know exactly who he is and ill.be 35 on the 27
Well, the only good news about this story is that the buyers of these untitled "storage containers" will not be "traveling" nor "driving" under admiralty law. LOL.
No worries, the DMV is on the case. It will be resolved in about TEN years.
Here’s one for you:
1981-2 2 Alfa Romeo cars were stolen from the Global Marine Terminal. They disappeared from the US Customs controlled facility where they were being delivered by ship. All goes quiet on this case for 2 years, then one of the cars is being attempted to be registered to DMV in NJ. A red alert is immediately triggered as the insurance company representing the importer maintained the red alert with DMV.
As it turns out the 2 cars were garaged half a mile from the dock where it was imported. The thieves were longshoremen working at the facility. The delivering vessel was a “RoRo” (Roll on - Roll off) type. Do, the longshoreman had the keys and drove it off the ship, with a cohort flagging him through the gate and skid with the second car.
Other problems with trying to register the cars besides being stolen is that these 2 cars didn’t have proof of legal import (Customs related), there were no safety and emissions declarations for either vehicle so not eligible for registration.
The importer can postpone Customs import on the vehicles for several years. As missing vehicles can removed from the inventory listed on the documentation, but notated why.
clip from the movie Fargo, "A flustered Jerry then gets a call from the GMAC, the bank holding company, inquiring about the vehicle IDs he was supposed to send them. Jerry tries to buy more time but the man says he will need the numbers by the following day or he will have to hand the case over to their legal department."
Rob Wolcek did a Hall of Shame story about dealer in Detroit pulling the same shenanigans not too long ago. Maybe somebody changed locations...
They have been there for years and we’re very reputable . They started having financial issues
About time. I was wondering when Steve was going to talk about this dealership. I've been reading about this dealership for about 2 months now, thinking Steve will be discussing it any minute now.... any minute..... ah yep any minute.... ah ha mm yep {crickets quietly chirping}.
A hospice company had been ignoring me as far as restitution for rental equipment which was covered by the hospice contract. I went by to ask again for the money…the woman was talking to some customers/potential customers, anyway I barged in and my volume started going up, but I got paid. In Cash! Right Then. I had been quiet and peaceful(for six months)until yesterday. The squeaky wheel got greased!
Tks Steve! Great info. Never certain what a new day with your channel may provide. Boulder, Co. just down the street.
No vipers in stock. When I bought my Tacoma in summer 2019 - the dealership didn't send the DMV my money for over 30 days. My temp tag was EXPIRED. They sat on the fees they charged me for tag and title, SHADY SHADY SHADY.
Old used Ferraris with insanely expensive major mechanical issues? I don't believe it!
When I take possession of a car, the seller must have the title in hand to give me as soon as I hand over the money. Within seconds. Not days, not weeks, not months. In my state, you have to have the title in order to register the car. If you're driving around in a car that isn't registered to you, the cops impound it. If you don't show up with the registration within days, the car is crushed.
I would see this dealership when I travel to and from Vegas and thought I would drop in. Saw the rest report on my local station and was thankful not to have gone there.
Based on what I have heard they are clearing out all of their cars. Not sure if they sold or just being moved to the new location.
For some reason this reminds me of a dealership I worked for that opened a couple satellite dealerships and used floor plan cars as collateral against a loan. They got caught and it ended up being a big investigation.
I would say that this one’s going to be very interesting to watch. This middleman had a lot of opportunities to play with all that money.
I used to fantasize about super cars when I was a kid. But once I grew up I realized that they were nothing more than overpriced hair loss or penile compensation devices. But besides that, I guess the lesson here is to never let go your cash before taking all the precautions and making sure everything is legit.
As soon as you sign the used (or new) car order & purchase agreement, the agent for the owner / seller establishes "bailment", or, fiscal responsibility, for what item was consigned for aftermarket sale.
The original owner should have ZERO problem pursuing civil and criminal redress.
Good topic.
Thanks.
There was an antique car broker in NH (Dusty Old Cars) that went bankrupt with similar allegations. They promised very low commissions like 1-2%. Too good to be true. Nashua attorney Michael Askenaizer characterized the business as a ponzi scheme in court filings. They estimate the fraud was in the neighborhood of $3-4 million.
I'm surprised that you didn't mention repair costs. Dusty Old Cars regularly kept the proceeds from the consignment sales without paying the owner of the vehicle. He sometimes paid a fraction of the net sales price, after charging for what the customers said were bogus fees and phantom repairs.
DMV is on the case! Now we'll get to the bottom of this!
Don't you mean the back of the line?
Now just how does Covid prevent you from mailing someone the title for the car they bought? I'm REALLY curious if they have anything close to a answer that isn't total non-sense.
If CNC was floating other people's money that only works when you have sales constantly to keep the old floats from getting too old. If sales stop then the floats get super old and obvious. With checks they call it kiteing or floating. With stocks they call it a free ride violation. In this case with cars you could call it a Ponzi scheme.
@@Ureallydontknow good explanation, fits the circumstances.
Covid today is the catch-all excuse that 9-11 was twenty years ago. I skated on that for over a year before people started calling me on it.
To be fair, staffing was a major issue during the peak periods... but professional temp agencies exist and it should have been dealt with in a timely fashion.
Sadly, it's obvious this dealer would obviously regain some lost respect if turns out they're just sitting on money to maximize interest income while in thier hands. But 16+ months to pay some sellers is a glaring sign that this (still illegal) behavior is unlikely.
Anyone wanna go see how much they got on PPP loans?
I'll sell you my RV. Take your money. Keep living in it. Maybe file a few frivolous bankruptcies. Road trip.
Now you're thinking like an American business owner!
When I lived in the Inland Empire, I remember driving by CNC and admiring the vehicles on their lot. Glad I couldn't afford to buy from them.
You can't really blame the Ferrari buyer for the repair costs. Didn't he have the car gone over by a qualified mechanic? For that price he SHOULD have, but greed told him to BUY IT! Unless the dealer put in writing about a warranty, etc. the guy simply outspent his checkbook.
The IE is the pit of southern California lol, I tried to buy a car from them years ago and they were impossible to even get a hold of. Glad I stayed away.
The guy who bought an electric supercar from China and got a pink mini car.
That was so hilarious. Is he the guy in this story? That’s a lot of fail for one guy.
@@somenygaard I think that was different than this.
😆
California dealer here. Starting Jan 1st, 2021 California DMV collects sales tax at the time the title and transfer paper work is presented to the DMV. These guys that bought cars never got titles so sales tax was never paid. Thom is going to do serious time.
In the radio hobby, we call large metal objects that have no useful purpose (for whatever reason) boat anchors.
Boat anchors do have one useful purpose though ...
I was wondering why their inventory was lacking. They had some impressive vehicles last year.
Hundo laying beneath the new US Express tractor trailer, almost perfectly fit under the trailer. Confirmed in next video as the shelf can be clearly seen under the trailer and the hundo is well hidden elsewhere.
Well spotted 👍
AARRRRGGGHHH! Again, hundo not found. Sheesh. 1.1k+
Reminds me of the plot for the original "Fargo" movie. William Macy's character's financial schemes at his car dealership start falling apart, so he arranges to kidnap his wife in order to coerce her father into paying ransom to bail him out.
The California Franchise Tax Board(FTB) is more tenacious than the IRS. You can bet that the FTB is looking over the DMV's shoulder looking for where this money went. If the dealership didn't remit the sale proceeds to the owner, then the dealership, by not remitting, will be taxed by FTB for the ill gotten gains. Just as the selling owner might have to pay capital gains on the reported sale price of the vehicle. The FTB is relentless in their pursuit..... I pity anyone coming under their inspection.....
The FTB is considered by California tax professionals as an "attack dog" of the taxing agencies within the state. The FTB is *nasty* to deal with.
@@sp1nrx I know this intimately! I moved from California to Texas in '97. In 2000 California FTB sent me a tax bill for income taxes I allegedly owed them from 1998 and 1999! They had extrapolated how much I had made from past 540 filings and billed me that amount, even tho I no longer lived in California. I sent them letters explaining my move in '97, along with accompanying paperwork proving my Texas residency starting at that time, to no avail! for 2 years I received invoices and threat letters from them, each year added interest and penalties to the total. When it hit $13K FTB made the mistake of putting it on my credit report. I contacted the Texas Attorney Generals office, sent them all the paperwork, and the matter was resolved within 6 months. The credit reporting agencies received a letter from FTB reversing the report and the matter was dropped. Never got an apology from them tho......
Wow. Now I know why Doug Demuro stopped getting his cars from them
He said the guys he knew weren't working their anymore (red flag) then covid-19 hit and didn't have a reason to go there anymore. Then this
I've followed the CNC Motors soap opera or A Fool and His Money Are Soon Parted. Dozens of stories, dozens of red flags, but greed drove people to hand over $100k cars spending less time researching dealership than $5k of livingroom furniture.
Blame covid-19 for bad business practices! I don't think that washes.
One guy consigned 4 cars to CNC & got 1 back. The other 3 he gave the titles to CNC before they sold so now he has no title, no money , & no cars. Out over $800k.
Many of these people are not rich. They saved up for 5-10yrs to buy their dream car & then have no title on cars that need expensive fixes or did upgrades before getting the title & have to hide the car to prevent repo.
Hey I'm from Rancho Cucamonga!
We are never in that news for stuff like that!
Moving up in the world...
When visiting the "Emerald city" look behind the curtain.😁
What's confusing is the man's surprise when the Ferrari puked in his drive
Can you do a time lapse video of all of the stuff growing behind you?
I bought a cheap used Mazda at CarMax in Austin, Texas, several years ago. My car got totaled by a road rager who then lied to police, one month before I was set to move to Florida. CarMax told me when I get to Florida that I should give the registration place CarMax's phone number, and CarMax would then fax the title to them. But when I went to the registration place, CarMax faxed something that was not the title! I spent hours on the phone with CarMax, and they finally admitted they lost the title. After a couple months, my temp tags were expiring. CarMax promised to FedEx new temp tags to me, but then they did not. So I could not legally drive the car I paid cash for. After many more hours of angry phone calls with CarMax, CarMax finally agreed to take the car back in trade for a different car. At one point, I asked CarMax, "I paid cash for this car. Who is the owner of it?" The CarMax woman refused to answer that question. CarMax was terrible. I will never shop there again.
The first time I ever heard the :term Police Book was in the movie Fargo. It was pretty easy to understand.
But the DMV has time to investigate anyone who sell 4 cars in one calendar year.
This is funny because it’s the dealership that Doug DeMuro filmed some of his content.
That’s come to an end.
I think Doug ran away as fast as he could when the news of this came out.
@@briangarrow448 Doug said his contact there had been gone and he hadn’t been doing any dealership videos anyway due to shutdowns.
Steve,
In the case of the "police book", the word 'police' is being used in its broader, original, and arguably more formal, definition of - "to maintain in good order, to clean, or to remove that which is undesirable by the populous" This formal definition is were we get our colloquial definition of law enforcement (those charged with maintaining good order by the populous) as "Police". Hence a book that maintains the "good order of inventory" (cars, boats, or other items "of interest of the populous" - e.g. taxable) and is inspected by the government, or populous in general or by agent, have traditionally been referred to as a "police book".
Another common example of using the broader definition of 'police' is the term 'police call' which is used to describe a time when a group of individuals careful comb and area to remove trash and other items not indigenous to the area. For example a group of Boy Scouts walking their campsite to make certain all trash is picked up before they leave. The same is done in the US Army, both for field camps, but also for the daily garrison grounds of a unit.
As you can see, the word 'police' is still used in many forms besides dealing with law enforcement, albeit enforcement is overwhelmingly the most common and colloquial use of the word in most European founded cultures.
High end broker in the 909 ! Who Knew. But then, in San Bernardino County, a high end car would be a 1973 Pinto.
Some local LA radio personalities referred to the 909 as The Valley of the Dirt People.
"The money was just resting in my account..."
Frankly the DMV at this point is being lazy and crooked not to ARREST the owner.
@SteveLehto what is penalty for this case if cnc is convicted? & can cnc decalre bankruptcy , & that would avoid paying anybody ?
Ah CA.. CA and Used Cars, what could possibly go WRONG? Throw in 3rd Party consignment ..... Bingo.
And then the brokerage company files bankruptcy and everyone gets screwed.
Sounds like how a lot of bankrupt companies operate at the end. Sorta in Ponzi scheme mode.
A very expensive lawn ornament haha
The moral of this story is "If you've got enough free money to afford an exotic car then buy it new from a dealer approved by the maker."
You can't buy certain supercars without connections and personal provenance. Plus, in general, used cars are cheaper. My Ferrari cost about $85K when a new one was over $140K (long time ago) but I couldn't have bought a new one anyway, even if I could have afforded it.
Some people also like to collect specific year models too
When I sold cars or RV's for clients the only way I would do it was I sell the car BUT the owner has the title to their car until it sells then the come and sign title over to new buyer..I'm not a dealer I do this on the side but it's the safe way for EVERYONE involved! I would not turn lose of my title until I was paid for my car! These sellers were not savvy for not holding onto their titles until they were paid!!
18:47
Yep, there's a problem here...
Where'd the money go?
It got paid to a contractor and construction firm to come in and install a huge deck on the back and down the sides of the consignor's home and to dig a huge hole where a swimming pool will be next week.
There was a story like this on "American Greed" I think the dealer was in New Jersey?
One guy got his car back, and he claims that one of the wheels fell off as he was driving it home. This happened after they supposedly told him that they were concerned about his safety and would go through the car to fix any issues. Check out Matt Salvo's videos.
I think Ben laying flat right of Canada cup? Watch closely a shadow keeps changing here? Noticed new semi in front of WLLZ
I the US of today crime and fraud are viable career goals! Sad.
Shouldn't this be a criminal case of theft by conversion?
CNC owner thought he was selling Bentley's in Beverly Hills, dumped so much $$$$$$$$$$ into that building, you could not miss-it driving past on fwy. a regular Taj Mahal, prior building was probable 1/20 the size.
Ben - Not found... Argh!
Same here. I've gone Ben-Blind! Reeeeee!
Car Dealer back in December of 2020........"Wait, what do you mean my forgivable PPP Loan didn't fund?"
I seea nice way to get around this.
Don't know if the type of product i will mention next exists yet, and i would be really surprised if it doesn't.
So, use a smartphone unlockable relay thingy to the engine starter.
This way even if the consigned middle man seller has they keys, they would have to contact you, the owner to unlock it and thus allow the vehicle to be driven.
If they bypass it then they are liable for attempted theft.
Som this way the current owner knows when the vehicle will be test driven and hopefully sold, so that he can come in with the title and finish up paperwork.
He gets his money then and there from the new client.
All is closed with the 3 parties involed getting their due from the contract
This is what makes people disappear.
I'm naive as to how car stuff works.
If I have a car that I bought for cash.. and I want to sell it to a dealer...
Do I give the dealer the title? I would think so.
So a buyer would be able to go to the dealer, see a car on the lot and say "I like that, show me the title" and they could actually just find the title in their files, right?
Here's what I learned from watching a number of similar videos. Yes, if you, a private party, sell the car you own free and clear to a dealer, you would hand over the car, the keys, and the title (pink slip).
Unfortunately, in this business it is never this clear, cut and dried. Most dealers get their inventory (the cars) from trade-in auctions. They buy several at a time, and all the titles are transferred electronically. At this point, the VIN is checked for stolen vehicle and lien info.
There is a lot that goes on behind the scenes involving the dealer buying the cars, the auction company (like Manheim or Coparts), leasing and finance companies and the state DMV.
Usually, everybody does their job like they are supposed to, but a large part of it is info being shuttled from data base to data base. Because everybody is just looking at their own part of the transaction, sometimes a step is missed or somebody does their job wrong. Sometimes, fraud is involved.
The problem is that the last person at the end of this chain, the retail buyer, ends up holding the bag when something goes wrong, and if usually takes a lot of money and time to straighten things out.
Then you have Executive Car Rental at Metro airport.
Isn't this the company that Doug DeMuro films videos at?
Middlemen add very little.
Oh boy, CNC, the land Doug hath forsaken.
I'm sure the DMV will take as long with this as my tab renewal.
@@isallah1kafir196 Learn 2 English. Forsaken means abandoning or shunning. Meaning, as soon as Doug found out he dropped them like a bad habit. As was right and ethical. Why even reply dawg.
Thank you so much for all the good info in this case. I had no idea about the 'police book'.
Almost all commenters on this case are yobbos parading their ignorance.
You really do learn new stuff every day.
@10:23
We get it, you wanted to use your words…
I think I’ll add that one to my repertoire. 😉✌🏻
Doug Demuro has reviewed many of CNC cars. He also promoted them on his channel.
New Mexico also has the smog requirement before you can register it.
But only in the Albuquerque ~ Santa Fe areas. Few other cities or towns have the smog requirements --yet.
What a great story….sad….but interesting. This sounds like one of those stories where there may be no solution. We will see people who had a car that got sold but they got no money for it. There will be someone who paid for a car who either is forced to return the car but gets no money back. And there is likely a company that will claim bankruptcy that benefitted from the money but can’t pay the debt (which was likely the condition they were in before the cars got sold in the first place and why they did not complete the transactions). What makes me cringe the most are those who are complaining because they bought a very expensive car with serious and expensive needed repairs. THOSE people are idiots and perhaps deserve what they got. I cannot imagine buying a car for tens of thousands of dollars knowing that changing the plugs would be a major expense and not having a qualified mechanic look over the car very carefully in order to identify potential problems…..especially since most used cars have no warranty. They were asking for the problems they inherited and don’t have a legal leg to stand on regarding repairs…..now clear title is another story.
Rob Wolcheck needs to get this story
In layman's terms, they are stealing. Imagine if they were handling high-end drug deals (vs. cars), and stiffed the consigner or failed to deliver to the buyer. The problem would have been solved, very quickly, in a dark alley. Boom, out of business. Even now, I wonder where such large sums of money have gone....
I think they would call it a police book because it’s the first thing you hand to the police when they come for you lol.
On top of all of this why are these buyers paying 250k for supercars and not have the computer data pulled to find out it needs a $5,000-15,000 clutch or transmission linkage or any other KNOWN major maintenance factors for super cars.
Waiting for Ed Bolian to do a vinwiki on this.
Very similiar to the story of Bobby Khan, his dealership was Emporio Motors. He used the money to live a high roller lifestyle. A certain You Tube person consigned a high $ car, Bobby sold it, but never paid the the well known you tuber for it.....
Sounds like the Emporio Motors/Bobby Khan scandal a couple years back. Superspeedersrob has a few videos on the subject since he got screwed trying to sell a Ferrari 458.
This makes me beyond angry. I dealt with a similar situation to this with a big 3 new car dealer. My scumbag was taking trade ins and reselling without paying off the original lien. Couple months after trading I started getting notices of late payments. The dealer swore it was handled. My friend at the bank advised me to make the payments and when scumbag eventually paid they would send me the amount of overpayment. It never happened. Luckily I only owed a couple thousand bucks. I got the title but never the truck back. There's no history of it since that I can find. Scumbag was eventually charged and promptly slapped firmly on the wrist and released. It's been years and still makes me mad to think about. I haven't traded a vehicle in since.
When someone is buying/ordering a new car, they usually trade in the old one and use it as the down payment, or just because it is an easy way to dispose of the old car because they don't want to deal with the buyers, and negotiating the final price. BUT, if they took the time to check what their current car sells for on a lot or privately, they will find out that the dealers trade-in value is usually 50 % to 75 % of what they could sell it for. Granted the dealer has lots of overhead such as rent, hydro, insurance, and any repairs that might be needed before they can sell the car. You as a private person can sell it for the same as a dealer would, only in your case it is an "as is" sale. No repairs, no detailing, no overhead (depends on your circumstances - such as on or off street parking, nobody to pay commission to) and you keep more monet you can apply to reduce your new car loan. Just predetermine the lowest price you will accept and add to it so the buyer can "negotiate" a lower price than your asking price. You get what you want and they think they got a deal. The buyer can then use what they saved for the tow truck and repairs. Sell privately or run it through a reputable auction service. Then attend that auction to view what it sells for, and they offer a reserve price.
Doesn’t Doug Demuro do a lot of content with CNC’s cars.
Can't you get the dealership for theft of the car if they sell it without giving you the money for it?
No, it's technical. Just like you won't be charged with car theft if the owner hands you the keys, but you fail to return the vehicle.
Was wondering if you'd be doing a story on these guys, Rj in Oz
Thank you for covering this
" I don't know what they call that in california" they call it equitable redistribution of wealth...lol
Did the Canadian Robot Lady asset forfeiture the $100 Bill?
Possible reason for "police" book. Could be from before states got heavily involved that the local police wanted to know that they could look for stolen property. Similar to lists that pawn brokers keep.
I think that a CNC Motors got ran out of Tempe, AZ years ago for screwing people over? (Allegedly) They were a Corvette specialist.
Any time one is dealing with a new or used car dealer or broker, just assume that somehow you're going to take it up the rear end. Bring your own surgical lube, you'll thank me later. There may be a few relatively honest dealers out there, but that would be the exception and not the rule. I'd rather have a colonoscopy without anesthesia than buy a car or truck. I've been intubated not once, but twice while fully conscious and found that more pleasurable than buying a vehicle.
wait, that's where Doug Demero does all his videos?
He has done a couple videos there, not all his videos, and those were well over a year ago.
@@JonnyRicter There was a strike of a dozen videos or so he did there, we were joking he was held hostage lol
@@alexm566 what are you talking about? You said “Doug does all his videos [there].” He doesn’t. I don’t know wtf you’re talking about with respects to him being a hostage.
So this made me do some thinking. Please answer. I seriously don't know. If the broker is a business in the industry which routinely sells vehicles or even just brokers the sale; has the authority to sell the vehicle or enter into an agreement to sell by a specific power of attorney outlined in a contract; has apparent and actual authority to do the above; and then deliver a bill of sale, is there a rebuttable presumption of ownership? In Oklahoma a person can petition the court to issue title by claiming rightful ownership through a civil action. So if titles were not delivered to the purchaser but a contract or bill of sale was delivered, that could show proof of ownership for a court to issue title. Just curious or am I off my rocker.
Prolly varies from state to state. Seems to me what you are describing is a way for the buyer to legally force the issuance of a title based on the fact that he fulfilled his side of the transaction in good faith, including paying the purchase price.
But if that purchase price money was not delivered to the seller, then that person will be forced to suffer the loss of both the car and the money, unless they sue and collect from the broker.
More than likely CNC motors was probably financially upside down and by the time they cashed the check the bank acct was already in the negative. I don’t think a once very reputable dealer just decided to start scamming everyone but they certainly have a huge mess
CNC Motors? Daddy Doug's favorite dealer to shoot videos at?
isn't this the same dealership where Doug Demuro filmed a lot of cars? :)
In addition to all of the other shenanigans, is it possible that the Car's 'in stock' were being treated as 'assets' to underwrite loans to the Dealer in order to provide cash-flow, etc ... ?