Navigating Title & Lien Issues at American Car Centers: What You Need to Know

The Expert Podcast

Overview:

• Discussion on the recent closure of American Car Center, a subprime auto lender, and the potential consequences for car buyers who paid off their cars but never received their titles.
• What to do if your dealership goes out of business before you get your title.

Key Points:

• American Car Center closes its doors, affecting 20,000–100,000 vehicles with potential title problems.
• The dealer sold cars with in-house financing (buy here, pay here), but customers only receive their titles after the last payment.
• The dealership’s closure leaves many buyers without the title to their vehicles, and the title problem can persist if the dealership goes bankrupt or is sold to another company.

What You Can Do:

• If your dealership goes out of business while you’re still making payments, seek legal advice immediately.
• File for a court order title, magistrate title, or civil lien title with your state’s titling division to claim ownership.
• Some states have a victim's restitution fund, so acting quickly can help you secure your title before the fund is depleted.

Why This Is Important:

• The closure of a dealership like American Car Center, which had 40 dealerships across 10 states, creates a ripple effect, leaving thousands of vehicles at risk of having unresolved title issues.
• With 288 employees terminated and no one available to process titles, buyers face an uphill battle to recover their titles.

Action Steps for Affected Buyers:

1. Contact an attorney or legal professional for advice.
2. File a magistrate title or civil lien claim as soon as possible.
3. Contact your state’s titling division and inquire about any victim restitution funds.
4. Be proactive—start the process immediately to avoid losing your car and payments.

Links:

• Methods to get your title if affected by a dealership closure.