THE former owners of a car dealership could be left with over $1 million in debt even after selling the property and remaining inventory.
The current listing price comes far too short of what remains of the nearly $4.5 million debt that forced the business to close.
The former dealership property has officially been listed for sale[/caption]
The dealership’s abrupt closure in April left some locals without access to their vehicles trapped inside[/caption]
Southern Hall LLC and John L. Emerson, former owners of the Oxford County Chrysler Dodge Jeep Ram dealership in Paris, Maine, owed exactly $4,462,621.27 to Rockland Trust Co. before shutting down.
Their total inventory at the time was valued at $946,945, with the 4.77-acre property and its four buildings totaling 27,659 square feet now being listed at $2.6 million, according to the Advertiser Democrat.
Listing agent Justin Lamontagne of the Dunham Group confirmed interest in the property from automotive sales and service businesses.
Dunham Group has also been advertising the property as a multi-use commercial opportunity for wide retail or even light industrial usage.
Even ignoring the various listing fees that will cut into its profits, the property sale and inventory liquidation will only cover roughly 75% of the total debt.
This would leave Southern Hall LLC and Emerson on the hook for over $1 million.
The dealership abruptly closed in April, and left many drivers in the lurch with respect to maintenance on their cars.
Some customers even found their cars trapped inside following the bank’s seizure of the property.
Locals such as Peggy Tripp were likewise forced to get creative in order to get their vehicles back, per an initial report by the Advertiser Democrat.
Using a wrecker and her spare key, Tripp was able to rescue her Jeep, which had been sent in for repairs related to an accident she was involved in.
“I’m just disappointed,” she said of how the dealership handled its closure.
“I’ve always, always traded and done my business here. I’m frustrated they didn’t call me, but they had to know,” she added.
She also “[felt] bad for the people who work here” because they “have been so nice” to her.
With the maintenance on Tripp’s car having not been completed, she was forced to take it to another shop to finally get it fixed.
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
Others weren’t so lucky, with one customer able to confirm his car was there and its maintenance completed but with no way of exiting the lot.
Signs on the dealership’s doors instructed customers to contact attorney Christopher Currier with any questions regarding the closure and their vehicles.
Currier confirmed that he was working with individual customers to ensure recovery of their vehicles, but would not elaborate or comment further.
Currier did not immediately respond to The U.S. Sun’s request for comment.
DEALERSHIP DOWNFALL
Many other dealerships have been forced to close their doors for various reasons this year, with Texas’ Tricolor Auto Group shutting down due to similar debt- and fraud-related issues.
Even legacy dealerships in business for nearly a century like Buddenhagen’s Ford in New York have closed their doors for various reasons.
This phenomenon isn’t exclusive to car dealerships either, with a historic Harley-Davidson dealership in San Francisco being “run into the ground” by new management.
Other Harley dealerships have taken note of the company’s current state and are getting out while the going’s good, such as the Vreeland brothers’ beloved storefront in Pennsylvania.
