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Drivers told to ‘keep paying loans’ on cars despite dealership chain filing for bankruptcy and closing 65 locations
DESPITE being left in the lurch by a major used car dealership, purchasers are still being advised to make all car payments on vehicles purchased there.
A key technicality in who actually collects on the auto loans used to purchase vehicles from the dealer is why.




Earlier this month, used car dealership franchise Tricolor Auto Group filed for Chapter 7 bankruptcy, leaving customers to its 65 locations across the southwestern United States wondering what to do next.
The answer many reached was to simply not make their car payments, citing Tricolor’s treatment of them and how unfair it is to be expected to make payments per usual.
“Why should I have to pay for a vehicle that, if they’re going to breach the contract and not contact anybody and leave everybody high and dry, why should we have to do the same?” questioned Houston local and Tricolor customer Christopher Pickens when speaking to local ABC affiliate KTRK.
However understandable Pickens and other customers’ frustrations are, experts advise against stopping payments on a purchased vehicle due to a key technicality in who the lender actually is.
“No matter what anybody says – you should keep paying the loan, and here’s why. If you got a car from one of these dealerships – Tricolor being one of them – your loan is not with a dealership. Most likely, it’s with a financial institution,” explained automotive expert Brian Moody.
He also emphasized the importance of keeping paperwork, since it’s what makes an agreement binding even in cases like Tricolor’s where the dealership has since closed down.
For people like Pickens who traded in a used car, this is incredibly important, as it could be the only thing that stops the trade from “damaging [his] credit” as he waits for his payment from Tricolor on the car.
In addition to getting legal help, those in a situations like Pickens’ “need to call the lender right away and show them the paperwork and tell them what’s happened,” per Moody.
Tricolor Auto’s official website doesn’t offer any information on the status of payments for used car trade-ins, but asks that customers continue making their car payments as usual.
As of Tuesday, the Texas Department of Motor Vehicles was investigation 157 complaints related to Tricolor Auto per KTRK.
In addition to the Texas DMV’s investigation into complaints, Tricolor is also being investigated for fraud by one of its biggest lenders.
During a company presentation earlier this month, Fifth Third Bank CEO Timothy Spence said there appears to be significant fraud in the paperwork Tricolor used to secure a loan from the financial institution.
The collateral file used to support the borrowing base in Tricolor’s warehouse facilities and audited financial statements were specifically mentioned as indicators of large-scale fraud.
Tricolor’s Chapter 7 filings saw it claim more than a billion dollars in liabilities while being in possession of somewhere between $1 and $10 billion worth of assets.
What to do if a dealership closes

If you recently bought a car or motorcycle from a dealership that suddently closed, you may feel anxious about how that affects you.
When you finance a new car or motorcycle or need warranty repairs done at an authorized dealership, a sudden closure can make some people think they’re out of options or worry their car will be repossessed.
If you’re in a situation that sounds like that, here are a few things you can do after receiving an official notice:
- Notify the bank hosting your loan of the closure to make them aware. If the financing is done through the dealership itself, it’s important to contact the dealership or your salesperson to ask how to keep up your payments. Many dealerships will send the lien (the title and registration that will only be released to the buyer after the debt is paid) to a financial institution to keep.
- If the dealership cannot be contacted through traditional means, most states allow drivers to apply for the title and registration through the DMV.
- If you leased a car from a dealership that went out of business, instructions should be sent as to which dealership to bring your vehicle to when the lease expires. If not, contact the dealership.
- A factory warranty through the manufacturer will be honored at any other authorized dealership. However, an extended warranty through the dealership may not be honored at other repair shops, so it’s important to seek that information from the dealership as soon as possible.
Source: Consumer Law Group
Tricolor Auto Group did not immediately return The U.S. Sun’s request for comment.
In addition to Fifth Third Bank, several other major financial institutions have significant exposure to the brand which could cause losses.
JPMorgan has nearly $200 million of exposure, while Blackrock has invested $90 million into the company. Barclays is also financially involved with the company.
DEALERSHIPS DYING OUT?
In addition to Tricolor closing its 65 locations across Texas and California, many other auto groups have had to shut down this year, such as AutoCanada all but fully pulling out of the American market.
Other dealerships are facing problems of a more political nature, such as the state of New York’s ongoing battle with Tesla to strip its ability to bypass traditional auto dealers.
Yet arguably no dealership brand has been hit harder than Harley-Davidson, with even a thriving location set to close up shop imminently amidst major changes in senior leadership.
Costco confirms its pulled plug on popular gaming deal as shoppers notice item is ripped from site

COSTCO has confirmed that it is no longer offering customers a popular gaming deal.
Members began to question whether or not the console, games, and accessories were still around after noticing them missing.


In recent weeks, several avid gamers claimed Costco’s Xbox products were removed from shelves and listings online.
Rumors quickly started to circulate that Costco had moved away from offering any Xbox items in the foreseeable future.
This proved accurate on Thursday when a member decided to call in and request more information about what had happened.
“Just called Costco about the Xbox stock. I was told that they will no longer be carrying Xbox consoles,” a former IGN employee, Destin Legarie, explained in a post on X.
“‘We don’t have any plans going forward to carry an Xbox console.’ Saying it was a business decision.”
“They did say they have some great deals on Switch & PlayStation, though,” they added.
NOT ALONE?
It also doesn’t appear to be a decision limited to Costco, either.
Several shoppers claimed in the comments on Legarie’s post that EB Games Canada is stepping away from Xbox offers.
Even so, their website still currently lists the Series S and Series X consoles.
“Wonder if it’s low sales or margins that made Costco pull the plug,” another shopper suggested.
A third emphasized that Costco members can still buy Xbox subscription and points cards.
Another gamer based in Australia confirmed that the Series X and its accessories are still available.
It appears to be only a US and UK-based removal for the time being.
The US Sun has contacted Costco for more details.
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PRICE HIKES
Microsoft did confirm in September that prices would be going up on several Xbox consoles in the US due to “chances in the macroeconomic environment,” per a press release.
“We understand that these changes are challenging, and they were made with careful consideration,” the tech giant wrote on its website.
September’s uptick is the second of the year on Xbox consoles, with the first being earlier this spring.
Starting October 3, the Xbox Series S 512GB will be $399, up $20 from $379, according to a PDF from Microsoft.
Xbox Series S 1TB is set at $449.99, Xbox Series X Digital $599.99, Xbox Series X $649.99, and the Xbox Series X 2TB Galaxy Black Special Edition at $799.99.
The Xbox Series X 2TB Galaxy Black Special Edition is currently $729, so that means about a $70 increase.
The increases on the other consoles are at least $50.
PlayStation and Nintendo have also confirmed price hikes this year.
As of August 3, costs went up for the original Nintendo Switch, Switch Lite, OLED models, and almost all Switch accessories.
Sony’s PlayStation consoles saw a $50 increase on August 21.
Horrifying final texts missing teen Caden Speight sent mom about ‘a white van’ before phone was found snapped in half
A MISSING 17-year-old reportedly sent his mom disturbing texts about a white van before cops found his truck abandoned and his phone snapped in half.
Cops fear that Caden Speight is in danger after responding to a shooting scene in Dunnellon, Florida, about an hour south of Gainesville, on Thursday and finding the empty car.


Cops found his truck abandoned on the side of a highway at around 4 pm after hearing reports of gunfire, but there was no sign of the teen.
Inside the car, they found his cell phone snapped in half and started combing the surrounding area and looking for any signs of the teen.
It was initially reported that Speight could have been in a light colored van with four unknown Hispanic men.
However, at 11:45 am, the Marion County Sheriff’s Office said this information is inaccurate, and they believe Caden could have fled the scene on a bicycle.
Before the teen disappeared, he sent his mother now-horrifying final text messages, she said in Facebook posts.
“Mom, I’m shot […[ 4 men […] white van,” read the bone-chilling messages, according to radio station WAUC.
Cops released surveillance images of a teen matching Caden’s description walking through a parking lot with a dark mountain bike.
He was also captured purchasing a tent at a Walmart in Ocala, about a 28-minute drive from where his car was abandoned.
The sheriff’s office said that, despite this new information, they still believe that Caden could be in danger.
The teen was described as 6 feet tall and 150 pounds with brown hair and brown eyes.
He was last seen wearing blue jeans and a t-shirt.
Anyone who spots someone who matches Caden’s description is urged not to approach him, but instead call 911.
In the updated statement, Marion County Sheriff Billy Woods said, “We respond to every 911 call with a determination to ensure justice is served and the truth revealed.
“But any law-enforcement officer will tell you that when these calls involve juveniles, it takes on an even greater intensity. This case is no different,” he wrote.
Woods insisted that all available resources are being poured into the search for Caden, acknowleding that initial information was proven false.
More to follow… For the latest news on this story, keep checking back at The U.S. Sun, your go-to destination for the best celebrity news, sports news, real-life stories, jaw-dropping pictures, and must-see videos.
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