Nassau Used Car Dealership Scammed Buyers: DMV

The Department of Motor Vehicles helped secure titles for customers who were scammed by a now-closed Valley Stream used car dealership.

The DMV was able to secure the titles for 48 customers, with more cases pending. In complaints submitted to the DMV’s Division of Vehicle Safety, many consumers said they had purchased used cars from Valley Stream-based 1-800 Preowned, located at 400 West Merrick Rd., but unknowingly never received proper titles for the vehicles.

Although the business has closed, the DMV will seek a formal revocation of the facility’s business registration. This will create a permanent record of the violations committed, which will be taken under consideration if any of the involved individuals apply to open another automotive business with DMV.

"DMV expects dealers to treat their customers honestly and fairly, and consumers expect the same," said Executive Deputy Commissioner Terri Egan. "This dealer misled its customers by selling vehicles it could not deliver titles for, leaving customers stuck with cars they could not properly register and without the funds to purchase another."

The DMV was able to assist all 48 customers with obtaining clear titles from either 1-800 Preowned or from the floor plan companies that provided short-term loans to 1-800 Preowned to purchase inventory. In most cases, the dealer did not provide titles even though customers paid an additional $75 fee. All of these customers risked having their vehicles impounded by law enforcement, plus towing and storage fees, because their registrations and titles were never issued to them. These owners were also facing possible insurance lapse violations that could have resulted in fines and the potential suspension of their driver license.

For two consumers, 1-800 Preowned used the same car to scam each one separately. The dealer failed to pay off an outstanding loan on the first customer’s trade-in vehicle, and then sold that same vehicle to a second customer who was unaware that a lien against the vehicle remained outstanding.

The dealer has been cooperative and has spent $6,000 for registration fees. The total amount of restitution recommended in hearings is about $65,000 to date. There is still potential for additional complaints against this facility.

If you believe you have been a victim of 1-800 Preowned, or any other DMV-regulated business, you can call Vehicle Safety at (518) 474-8943, any weekday from 8:15 a.m. to 4:15 p.m. More information is available on the DMV website.

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