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Hello everyone.

Some members on the board purchased their cars from luxury motors, or was looking at buying a car from luxury motors. It seems that their used car division is under state investigation.

http://www.suntimes.com/output/news/cst-nws-car28.html
A luxury auto seller with five Chicago area dealerships is being investigated by the state attorney general after complaints that it has sold cars despite customers placing hefty deposits -- $5,000 for one car, for example -- on them.


Some 50 complaints about Luxury Motors Inc. have come in to the attorney general's consumer protection division since January 2000, spokeswoman Gail O'Connor said Sunday.

Luxury Motors president Joseph Abbas told Crain's Chicago Business the deposits are to hold the prices of cars, not necessarily the cars themselves. "If a guy makes me wait three or four weeks, and I'm paying interest on a car, that's not fair. . . . We give that [deposit] money back," he said. The attorney general's office is investigating whether that policy is being properly communicated to customers, O'Connor said
In case if anyone is curious, they currently have 6 M5s for sale.
 

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Discussion Starter #2
here's the rest of article

Luxury Motors says consumers who pay a deposit are securing the price of a car, not necessarily the car on the dealer's lot at the time of the deposit. This policy is stated on the dealer's deposit agreement. In the case of the Florida customer, the attorney general's office says he was not aware of the deposit policy.

"That's not true," says Dave Rafus, vice-president of Luxury Motors' Bentley dealership in Downers Grove, who says he knows the customer in question.

Mr. Rafus points to the clause on Luxury Motors' standard deposit agreement. "Ninety-nine percent of people understand (the policy), but there is always the 1% who doesn't," Mr. Rafus says.

Joe Abbas, Luxury Motors' president, says some of the complaints about deposits stem from consumers who are unable to arrange financing for a car and are angered when the car is sold. "If a guy makes me wait three or four weeks and I'm paying interest on a car, that's not fair. We can't have one guy take it off the market," says Mr. Abbas. "We give that (deposit) money back."

DEALER A GIANT HERE

Luxury Motors is a giant in Chicago, selling 7,000 cars valued at $225 million last year. A Bentley spokeswoman says Luxury is "one of the largest" Bentley dealers in the U.S., and that the dealer is in good standing with the automaker. According to a Bentley survey, Luxury's consumer satisfaction score was 95 out of 100 last year, compared with a regional average of 94.2.

Allegations by consumers and in numerous lawsuits against Luxury Motors seem to center on Luxury's used-car business. Those complaints include failure to deliver a title promptly, failure to disclose a vehicle's history and selling cars with nullified warranties.

A customer from Green Bay, Wis., bought a 2000 Mercedes E320 from Luxury for $21,069 in cash on Oct. 27, according to a bill of sale provided by the customer, who declined to be identified and has not sued Luxury Motors. Mr. Abbas says the customer didn't receive the title until Jan. 21. A dealer has 20 days after a sale to submit title paperwork to the state for processing, according to Jim Kazimour, commander of the secretary of state police in Cook, Lake and DuPage counties.

"We expanded our offices and moved to a bigger one. We went from six people to 22 people in our office and we were just overwhelmed," says Mr. Abbas. "We had the title on Nov. 11, and we lost it in the move."

Mr. Rafus says the dealership has hired new workers to address the problems. "I just added another person who's just a librarian for titles. That's all they do is track titles," he says.

The Illinois attorney general's office says it has received about 50 consumer complaints against Luxury Motors Inc. since 2000. Photo: Brett Kramer

SUITS PENDING

Chicago law firm Krohn & Moss Ltd. is pursuing eight cases against Luxury, all in DuPage County Circuit Court. "I would say that's a lot," says firm partner Adam Krohn. "I can't think of another dealer we have eight with."

One of Mr. Krohn's clients alleges Luxury failed to pay off the loan on his trade-in car, damaging the client's credit rating. Another claims he bought a defective car that Luxury had already repurchased from another customer under lemon laws. Another client alleges he bought a car he thought was under warranty but, after a $3,100 repair bill, discovered was no longer covered. All of the cases are pending. Luxury denies any wrongdoing in connection with the Krohn & Moss lawsuits.

"There are some people no matter what you do you can't make them happy," Mr. Abbas says. "Worst case, we tell the customer we will take the car back. There is not one complaint that hasn't been answered yet."

The Better Business Bureau has collected 47 complaints on Luxury in the last 36 months, 16 of which are unresolved, according to a business bureau spokesman. The business bureau says the remaining 31 complaints have been resolved, which in most cases happens through mediation. Mr. Abbas says he has tried to make good on all complaints.

The Illinois secretary of state police, charged with inspecting businesses for compliance with licensing requirements, has not had any complaints about Luxury Motors, nor is the dealership on the police's "hot list" of problem dealers. "If there was something glaring, they would be on our hot list," according to Mr. Kazimour, the secretary of state police commander.

The attorney general's office took 16 actions against car dealers in Illinois in 2004, according to the spokeswoman.
 

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I am one of the people that bought my beast there. My experience was pretty smooth. There was a little miscommunication about my warranty that could have been a little slimey or just a bit of miscommunication. The things I can tell you is they had more cars than anyone else in the area, the deal I got was fantastic and the cars I had checked out by a mechanic I trust a great deal all came out completely clean. My car was still under warranty and there were no problems with warranty for me. Obviously one person's experience doesn't make or break anything about the dealership. There are tons of stories floating out there about LM, where they got their original money, how their sales pracitces work, etc. I'm sure there's some truth to some of them, I'm sure it's not half as bad as the worst of the stories. Ultimately it comes down to everything else in life for me, use common sense, protect yourself, keep records, check the cars out before you buy them, etc. They sold a ton of cars last year, the vast majority of the transactions went off without a hitch. I was fortunate to be in that category.

Ben
 

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bwstein said:
I am one of the people that bought my beast there. My experience was pretty smooth. There was a little miscommunication about my warranty that could have been a little slimey or just a bit of miscommunication. The things I can tell you is they had more cars than anyone else in the area, the deal I got was fantastic and the cars I had checked out by a mechanic I trust a great deal all came out completely clean. My car was still under warranty and there were no problems with warranty for me. Obviously one person's experience doesn't make or break anything about the dealership. There are tons of stories floating out there about LM, where they got their original money, how their sales pracitces work, etc. I'm sure there's some truth to some of them, I'm sure it's not half as bad as the worst of the stories. Ultimately it comes down to everything else in life for me, use common sense, protect yourself, keep records, check the cars out before you buy them, etc. They sold a ton of cars last year, the vast majority of the transactions went off without a hitch. I was fortunate to be in that category.

Ben
Agree. I think that most enthusiasts are very discriminating when purchasing a car. LM does have an incredible inventory. There are deals to be had.

I think that anyone intends on purchasing a car there should really look over the car, have a PPI conducted at another dealer, and have all promises written down on the "we owe" tickets.
 

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When I was looking, I made the mistake of giving a salesman there my cell number. He kept calling, and when I told him not to call, he had his boss call.

After dealing with them I wanted to shower.

That's all I'm saying....
 

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Imagine that...a slimey used car dealer!! I bought my car there and it checked out exactly as described. I found the previous owner and made sure everything they said about the car was accurate. Anywhere you buy the car...caveat emptor. There are tons are good deals at Luxury Motors, but be prepared to shower afterwards, as Ard says.
 

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ooohh........ how shocking........!!!

As one veteran saleman told me, in the car sales business it's all about,
[email protected] YOU...... HELLO ME ! Now that's an interesting way of putting it!
When he said this I was a bit taken back, realizing just what goes through a car saleman's mind or his philosophy. Aweful!

:nono:
 

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Re: ooohh........ how shocking........!!!

FAST 5 said:
As one veteran saleman told me, in the car sales business it's all about,
[email protected] YOU...... HELLO ME ! Now that's an interesting way of putting it!
When he said this I was a bit taken back, realizing just what goes through a car saleman's mind or his philosophy. Aweful!

:nono:
That is very, very good.

Right up there with "Generally, they are all looking to screw you, but when you find one who isn't... you're mistaken."

A
 

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Re: ooohh........ how shocking........!!!

ard said:
That is very, very good.

Right up there with "Generally, they are all looking to screw you, but when you find one who isn't... you're mistaken."

A
LOL - or - "Those that buy a used car from a friend or relative in the used car business are those that have been screwed by a friend or a relative."
 

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tannad said:
Agree. I think that most enthusiasts are very discriminating when purchasing a car. LM does have an incredible inventory. There are deals to be had.

I think that anyone intends on purchasing a car there should really look over the car, have a PPI conducted at another dealer, and have all promises written down on the "we owe" tickets.
I have purchased 2 vehicles from LM...and from my personal experience LM never takes care of the "we owe" tickets. When I purchased my '01 330 convertible from them they "owed me" a CD changer...I got the CD changer but they didn't have the mounting bracket so they said they'd call me when it arrived...I waited 4 weeks with frequent calls to the dealership...I kept getting the run around. I've spoken to a sales rep at www.napervillemotors.com ...many of the salesmen have worked at LM...they all said that LM never intends to make good on we owe tickets...hmmm...sour grapes on their part? I doubt it.

When I purchased my beast there I got a good deal and a fine automobile that checked out to the T (I had it inspected prior to purchase). My convertible is also a great car so as they say buyer beware...do your homework and you can get a fantastic deal at LM. I'd buy from them again but I now insist that all things be delivered prior to me handing over any money...they move pretty fast in that arrangement.
 

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Discussion Starter #12
e39m5nut said:
I have purchased 2 vehicles from LM...and from my personal experience LM never takes care of the "we owe" tickets. When I purchased my '01 330 convertible from them they "owed me" a CD changer...I got the CD changer but they didn't have the mounting bracket so they said they'd call me when it arrived...I waited 4 weeks with frequent calls to the dealership...I kept getting the run around. I've spoken to a sales rep at www.napervillemotors.com ...many of the salesmen have worked at LM...they all said that LM never intends to make good on we owe tickets...hmmm...sour grapes on their part? I doubt it.

When I purchased my beast there I got a good deal and a fine automobile that checked out to the T (I had it inspected prior to purchase). My convertible is also a great car so as they say buyer beware...do your homework and you can get a fantastic deal at LM. I'd buy from them again but I now insist that all things be delivered prior to me handing over any money...they move pretty fast in that arrangement.
Isn't a dealer bound to the "we owe" ticket? I am pretty sure it is part of the paperwork you sign when you purchase a car.

Then again.... this could be another reason why they are being investigated. ouich
 

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I bought my car from Naperville Motors and most of these guys are EX- LM guys.... they told me some stories.......


Be careful. Always run a check and bring a mechanic.


RKM
 
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