A DEALERSHIP has closed with no warning, leaving customers furious as they’re stuck paying for cars they can’t even drive.
Irate customers at a Mitsubishi dealership in La Porte, Texas, are in limbo after the store shut its doors due to financial collapse.
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Some drivers were left without licenses or registrations for their cars, while others had trade-in loans that the dealership never paid.
“We did a trade-in. They have not paid off our trade-in vehicle,” customer Lucia Sufentes told local NBC affiliate KPRC-TV.
Driver Autyana Hodges said the dealership “defrauded her.”
“I’m trying to get a house with my husband and this is going to mess with my credit in the long term,” Hodges explained.
“It’s going to tank everything. It’s going to turn into a repo that’s going to destroy my credit and it’s going to mess up everything it is that me and my husband are trying to build.”
The dealership’s general manager, Kenny O’Kane, said customers have every right to be upset.
“I understand totally why they would be angry,” he told KPRC-TV.
“Absolutely. I would be.”
O’Kane has been let down by the dealer too as he revealed he hasn’t been paid since September.
Bayside Mitsubishi’s owner, Alex Sinno, is now facing multiple lawsuits for the poor management.
Nissan Motor Acceptance Group, which financed cars sold at the dealership, is suing Sinno for more than $4.4 million.
O’Kane said Sinno’s money problems became even worse when Hurricane Beryl hit Texas in July.
Sinno’s company, A&F Holdings, has filed a lawsuit against their insurance brokerage over hurricane coverage in hopes of coming up with some of his owed money.
O’Kane said Sinno needs to make things right.
Mitsubishi’s full statement
Mitsubishi shared the following statement with NBC affiliate KPRC-TV about Bayside Mitsubishi’s closure in La Porte, Texas:
“All Mitsubishi Motors car dealerships are independently owned and operated under a franchise agreement,” Mitsubishi Motors North America said.
“In October 2024, Mitsubishi Motors North America, Inc. (MMNA) terminated Bayside’s franchise agreement and, as a result, Bayside is no longer an authorized Mitsubishi dealer.
“MMNA values the decision a car shopper makes when they choose to purchase a Mitsubishi vehicle.
“However, MMNA is not involved in the loans that customers entered into via Bayside Mitsubishi, or any loans that customers may have had on vehicles that they used as a trade-in.
“MMNA’s understanding is that concerned customers may contact the Texas Department of Motor Vehicles, Enforcement Section (“TxDMV) in Austin, regarding any complaints they might have with Bayside Mitsubishi at https://www.txdmv.gov/complaints.
“The TxDMV also has information on how customers may seek relief from certain registration fees when their dealer goes out of business or files bankruptcy, at https://www.txdmv.gov/motorists/consumer-protection/dealer-closures.”
Source: Click 2 Houston
“That’s a legal obligation that the owner needs to take care of and he’s going to take care of it,” O’Kane said.
“He’s in the process of trying to sell the property and he will take care of that. He’s got to take care of that.
“I think it will happen otherwise I probably wouldn’t be here.
“And I believe in the owner – that he wants to take care of it, wants to do the right thing.”
MITSUBISHI NOT INVOLVED
The business’s franchise agreement ended in October, meaning it was no longer an authorized Mitsubishi dealership.
Mitsubishi Motors North America told KPRC-TV they’re not involved in Bayside Mitsubishi’s situation.
“MMNA values the decision a car shopper makes when they choose to purchase a Mitsubishi vehicle,” they shared in a statement with the outlet.
“However, MMNA is not involved in the loans that customers entered into via Bayside Mitsubishi, or any loans that customers may have had on vehicles that they used as a trade-in.”
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
Customers are now begging the state’s Department of Motor Vehicles to step in as they face their unpaid loans.
“It’s not fair that you are doing this,” Sufentes said.
“You’re robbing everyone. You should be in jail. You should be held accountable.
“Somebody other than the owner should definitely step in and. And make him accountable for everything going on.”
Sinno hasn’t responded to The U.S. Sun’s request for comment.
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