A CAR dealership accused of pulling a dirty payment trick has left drivers drowning in debt and with vehicles they say they don’t even legally own.
Several furious customers claim they were duped into buying cars, only to find their trade-ins were never paid off, sparking loan nightmares and threats of repossession.
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The alleged scam centers on Kelly Grimsley Auto – a dealership in Odessa, Texas, around four hours from Fort Worth.
The shop is now being sued by Hyundai over what it says was a failure to pay off customer loans and properly transfer titles.
Joy Chew, one of the drivers, said she bought a car from the lot in January and handed over her old vehicle as part of the deal.
“I traded in my previous vehicle, which they’ve now sold, and then I started getting past-due notices from my bank,” Chew said.
She said she called her banker, expecting there had been a mistake.
“He’s like, ‘No one even called for a payoff […] your vehicle’s not been paid off,'” Chew told NBC affiliate KWES-TV.
She managed to reach Brandon Grimsley at the dealership, who sent one loan payment.
But that barely scratched the surface.
“My bank said, ‘You’re three months behind. One payment’s not gonna do it,'” Chew said.
Worse, she has no access to the car she traded in, which is still in her name.
“Some poor person’s driving around in a vehicle that’s still in my name. It’s horrible,” she said.
Hyundai Capital claims the dealership pocketed customer payments and skipped key steps in closing sales, including settling existing loans.
The lawsuit accuses the dealership of holding over 400 vehicles with unpaid balances.
The company claims several repayment checks bounced and says the auto group owed nearly $15 million as of March 6.
Dealership Tips
Here are some expert tips when purchasing a car from a dealership lot:
- 1. Set your price: Ensure you’ve calculated your monthly budget before going to the lot. You should include the car’s loan payment, insurance costs, fuel, and regular maintenance.
- 2. Research: Make sure you know which cars you’re interested in test driving before you reach the dealership.
- 3. Pre-approval: Secure financing before you go to the dealership. Dealerships may give you a better interest rate if they are competing with an outside bank.
- 4. Test away: Get behind the wheel before making any payments. A car purchase will be worth thousands of dollars – drivers should ensure they like the drivetrain, steering feel, and comfort of the car before taking it off the lot
- 5. Haggle: Drivers should always try to negotiate the price. There are so many good cars on the American market – buyers have a strong hand when negotiating price.
Source: Kelley Blue Book
CUSTOMERS IN FINANCIAL LIMBO
Court documents say buyers were left holding the bag, and the blame, with their credit scores taking major hits.
One customer, Brant, said his new car was nearly snatched from his driveway.
“Apparently I can’t get my registration because Kelly Grimsley didn’t pay the company that owns the title to my car,” he said.
A tow truck even showed up to take the vehicle.
He said he had to scramble to prove it was legally his, showing finance records, certificates, and payment receipts.
“He told me, ‘Your car has not been paid for by the actual owners.’ Luckily, the tow truck driver realized something was off,'” Brant recalled.
“Luckily, the tow truck driver realized something was off.”
Now, many are still picking up the pieces after being left in financial limbo.
Chew said the experience torched her relationship with her bank.
“It’s damaged my credibility with my banker,” she said.
“Not to mention it’s damaged my credit report.”
Hyundai Capital and Kelly Grimsley Auto did not respond to a request for comment from The U.S. Sun.