Don’t be swindled when buying used

By Denise Dick

Read everything before signing it, do research and ask questions, a detective in Boardman urges.

The adage “buyer beware” regarding car purchases need not apply if you become a “buyer informed.”

Authorities in the last couple of years have charged owners and employees at two area car dealerships with schemes defrauding customers.

In those cases, victims didn’t know the process that’s supposed to be followed in buying a car, said Boardman Detective Glenn Patton, who investigated both cases.

In the one case, “people weren’t getting the titles,” the detective said.

In that same investigation of Fat Man’s Auto Sales, Youngstown, which operated as a buy- here, pay-here dealership, employees were holding the titles until the vehicles were paid off, Patton said.

That’s not supposed to happen, he said, but victims believed it was normal.

Patton urges car buyers to read everything before signing, compare prices and ask questions.

The process to buy a used car from a dealership follows some basic steps.

Lindsey Bohrer, a spokeswoman for the Ohio Department of Public Safety, said in an e-mail that when a person purchases a vehicle from a dealer, the dealer is required to process the title paperwork.

“Normally, the dealer would obtain a Power of Attorney form in order to conduct business on the buyer’s behalf,” the e-mail said. “The dealer will have the customer sign a Federal Odometer Statement that attests to the mileage on the vehicle.”

That federal odometer form is the only form that the dealer cannot use the POA for.

The dealer will complete the title application and submit all pertinent information to the county title office, so that a title is made in the buyer’s name, Bohrer explained.

If there is a lienholder, the dealer will list the lienholder on the title application, she said.

“The title office will issue a ‘memorandum’ title to the customer; the customer would use the memo title to apply for plates,” the e-mail continued. “The title office would forward the original title to the lienholder for safekeeping until the vehicle is paid in full.”

As far as the registration goes, Bohrer said, if the customer has existing plates on the old (trade-in) vehicle and wants to transfer the plates to a new vehicle, they would need to go to a deputy registrar for the transfer process.

If not, the dealer normally issues the customer a temporary tag that allows the customer 30 days to purchase hard plates from a deputy registrar, she said.

Patton said it also may be wise to check to see if a dealer from whom a customer is considering buying a car is a member of the Ohio Defect Title Rescission Fund.

The fund, administered by the Ohio attorney general’s office, issues refunds to retail purchasers of motor vehicles who suffer damages due to failure of a motor vehicle dealer to provide a valid certificate of title in the name of the consumer within the statutorily required time, the AG’s Web site says.

Call (800) 282-0515 to learn if a car dealer is a member.

Buyers should also determine if a vehicle in which they’re interested is covered by the state’s Lemon Law, which provides compensation to consumers of defective vehicles. Sometimes, though, if the car is sold “as is,” the protection doesn’t apply, Patton said.

Last month, authorities raided Fat Man’s, Canfield Road, and charged the owner, Jonathan Smail; a salesman, Michael Mrosko; and the business’s collector, Paul Lacey, with engaging in a pattern of corrupt activity.

They are accused of withholding titles from people who bought vehicles at the business until the vehicles were paid off, among other violations.

A dealership is supposed to place a lien on a title until it’s paid off.

Also last month, the owner of a now-defunct U.S. Route 224, Boardman dealership, Harv’s Cars, was ordered to spend five years on probation and pay restitution of more than $30,000.

As part of a plea agreement, Buddy Harvey pleaded guilty and was convicted of six counts of theft and one count of defrauding creditors.

The owner’s brother, Gregory A. Harvey, also had pleaded guilty to theft in the case.

Some victims told police they traded in vehicles at Harv’s Cars for newer models. As part of the agreement, the dealership was to pay off the loan balances on the traded-in vehicles, but it failed to do so, forcing victims to make payments on both the old and newer vehicles, according to the complaints.

Other complaints came from those who bought vehicles at Harv’s but contended they never received the titles.

Still other people said they paid for warranties on vehicles purchased at the dealership and later learned those warranties hadn’t been processed and weren’t valid.

denise_dick@vindy.com

Buying a used Car

The process

The Ohio Bureau of Motor Vehicles provides information about the process to transfer a vehicle title. Necessary items:

Odometer disclosure statement form filled out and signed by the owner and the buyer (if the car is 10 years old or older you do not need the Federal Odometer Disclosure Statement).

The owner must release ownership in the vehicle. This is done by signing the appropriate space on the title. All people listed on the title must sign it in the presence of a notary.

If the title is lost, you may apply for a duplicate title, only in the county where the title was originally issued.

Bill of sale for tax calculation.

When you go to a title office they will assist you in transferring the title.

There is a penalty if the new owner does not change the title into his or her name within 30 calendar days from the date of assignment. The penalty is $5 in addition to all other appropriate fees.

After a vehicle has been titled, you must go to a deputy registrar to obtain license plates for the vehicle unless you are transferring plates from another vehicle.

Source: Ohio Department of Public Safety, Ohio Bureau of Motor Vehicles Web site