Car dealers running into problems in NC

RALEIGH — The problems confronting the nation’s Big Three auto makers are not the only problems in the industry.

The News & Observer of Raleigh reported Tuesday that the number of small car dealers in North Carolina cited for bad business practices is above average this year.

The Division of Motor Vehicles says since July, 51 dealers have sold cars but failed to pay the companies that helped them finance their inventories. The state has identified 624 victims involving the dealers.

Doug Dunnagan with the DMV says the bad economy increases car dealers’ problems.

The most typical complaints are that a dealer has not paid off a customer’s loan on a trade-in and that people haven’t received titles for purchased cars.

A dealer can face a hearing, misdemeanor charges or more serious criminal charges.

(Copyright 2009 by The Associated Press. All Rights Reserved.)