Driving away deceptive conduct in the used car industry
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Indiana Attorney General Todd Rokita has announced a sweep of lawsuits against multiple Indiana car dealers allegedly engaged in deceptive acts against car-buying Hoosiers. The lawsuits focus on helping affected consumers who purchased used cars and allegedly ended up with a variety of broken promises, such as not receiving titles or receiving vehicles with salvage titles that were not legal to drive on Indiana roads. “Indiana consumers deserve to get what they pay for,” Attorney General Rokita said. “We won’t hesitate to bring lawsuits against car dealers who lie or fail to honor their end of agreements with purchasers. Deceptive conduct hurts consumers, and it hurts the reputation of the vast majority of Indiana car dealers who conduct business the right way.” The lawsuits were filed against Cars R Us, MG Motors, Merliot Auto Sales, Phoenix Motors, Redelman’s Deals on Wheels, and W. Main Auto Sales. MG Motors and W. Main Auto Sales each allegedly sold cars to consumers and failed to deliver titles. MG Motors allegedly failed to deliver 17 titles while W. Main Auto sales allegedly failed to deliver 22 titles. Merliot Auto Sales allegedly sold 17 vehicles that had “salvage” title brands to unknowing consumers. Vehicles with “salvage” title brands cannot legally be driven on Indiana roads. Cars R Us allegedly agreed as part of a vehicle sale to pay off the loan on the consumer’s trade-in vehicle. Cars R Us allegedly failed to make the trade-in payoff, leaving the consumer with multiple auto loans — one on their trade-in and one on their newly-purchased vehicle. Phoenix Motors sold vehicles to two consumers when the vehicles were allegedly not owned by Phoenix Motors. The vehicles were allegedly then taken back by Phoenix and returned to their original owners, despite the consumers paying for the vehicles in full — leaving the consumers without the monies they paid or the vehicles they purchased. Redelman’s Deals on Wheels lost its Indiana dealer license to sell vehicles in December 2023. Redelmen’s allegedly continued to sell cars without the required license. Attorney General Rokita is seeking injunctive relief, consumer restitution, civil penalties, and costs in the lawsuits. Consumers who believe they have encountered wrongful business practices are encouraged to file complaints with the Attorney General at www.in.gov/attorneygeneral. The lawsuits are attached.
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