Car dealership fraud

[julie-e]

I wanted to buy a used car in the authorized dealership in Valley Stream, NY and gave them 10000$ deposit. However this dealership disappeared and neither gave me a vehicle nor returned a deposit. DMV records say that this company has some surety bond company. How can I find this company and can I recover my moneys from surety bond company? Thank you!

[Admin]

Julie,

Sorry to hear about your troubles. You need to contact the New York DMV and file a complaint. We have their address on the following page: Auto Dealer License Bond | DMV Bonds | MVD Bonds | JW Surety Bonds


The state requires dealers to post a surety bond to guarantee they will operate according to the rules and regulations of the state. If there is a legitimate claim, you will be the beneficiary of it. This sounds like a pretty clear case, but if the dealer is not cooperating you will want to act fast. Used car dealers in New York only have to post a $10,000 bond so if there are others that file a complaint they will get a portion too. If others filed the claims and $10K has already been paid out, then you won't be able to collect on the bond, as the full amount would be paid out by then.


Our agency just received claim letter for another dealer doing the same thing (different state). We have received 3 claims on the same dealer within weeks, so act fast!

Good luck!


PS - It may make you feel a little better to know that the bonding company will pursue the dealer for any claims both corporately and personally.