can a wholesale autobroker ever advertise legally ???

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yes and no
you may advertise your broker services
but not access to specific vehicles
you could reference vehicles advertised by retail dealers
with whom you have a brokering agreement
we allow that for vehicles placed on retail consignment
our drafted sale program costs 425. per vehicle
with red flag certification
you may show cars consigned to retailers
but you must negotiate and complete the sale
at the retail dealer holding that vehicle in its inventory
hope that makes sense
you have to be very careful
if you are not a licensed retailer yourself
the brokering agreement you hold may enable some advertising
under the retail dealers license
thx
Joseph
800-901-5950
+++
thx

some car dealer schools cancel at the last minute…be careful

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the list of

dmv approved dealer schools

is long

very few are career educators

devoted to the best car dealer class possible

+++++

REMEMBER THIS

some return your phone calls

some only sell bonds

some only sell insurance

some sell car dealer forms

some do income tax preparation

some cancel classes at the last minute

+++++

gotplates.com

is the car dealer education leader

we always answer phone calls

800-901-5950

we DO NOT sell product

we TEACH

we NEVER cancel our classes once posted on our website

AND

we are the only teachers offering an online preparation tutorial for free

CLICK HERE FOR THE FREE CAR DEALER CLASS ONLINE

+++++

we look forward to talking to you

and meeting you at one of our 39 car dealer class locations

+++++

TriStar Motors

gotplates.com

800-901-5950

+++++

call today

 

tesla is the bomb

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TESLA MODEL S ACHIEVES BEST SAFETY RATING OF ANY CAR EVER TESTED

SETS NEW NHTSA VEHICLE SAFETY SCORE RECORD

MONDAY, AUGUST 19, 2013

Palo Alto, CA — Independent testing by the National Highway Traffic Safety Administration (NHTSA) has awarded the Tesla Model S a 5-star safety rating, not just overall, but in every subcategory without exception. Approximately one percent of all cars tested by the federal government achieve 5 stars across the board. NHTSA does not publish a star rating above 5, however safety levels better than 5 stars are captured in the overall Vehicle Safety Score (VSS) provided to manufacturers, where the Model S achieved a new combined record of 5.4 stars.

Of all vehicles tested, including every major make and model approved for sale in the United States, the Model S set a new record for the lowest likelihood of injury to occupants. While the Model S is a sedan, it also exceeded the safety score of all SUVs and minivans. This score takes into account the probability of injury from front, side, rear and rollover accidents.

The Model S has the advantage in the front of not having a large gasoline engine block, thus creating a much longer crumple zone to absorb a high speed impact. This is fundamentally a force over distance problem – the longer the crumple zone, the more time there is to slow down occupants at g loads that do not cause injuries. Just like jumping into a pool of water from a tall height, it is better to have the pool be deep and not contain rocks. The Model S motor is only about a foot in diameter and is mounted close to the rear axle, and the front section that would normally contain a gasoline engine is used for a second trunk.

For the side pole intrusion test, considered one of the most difficult to pass, the Model S was the only car in the “good” category among the other top one percent of vehicles tested. Compared to the Volvo S60, which is also 5-star rated in all categories, the Model S preserved 63.5 percent of driver residual space vs. 7.8 percent for the Volvo. Tesla achieved this outcome by nesting multiple deep aluminum extrusions in the side rail of the car that absorb the impact energy (a similar approach was used by the Apollo Lunar Lander) and transfer load to the rest of the vehicle. This causes the pole to be either sheared off or to stop the car before the pole hits an occupant.

The rear crash testing was particularly important, given the optional third row children’s seat. For this, Tesla factory installs a double bumper if the third row seat is ordered. This was needed in order to protect against a highway speed impact in the rear with no permanently disabling injury to the third row occupants. The third row is already the safest location in the car for frontal or side injuries.

The Model S was also substantially better in rollover risk, with the other top vehicles being approximately 50 percent worse. During testing at an independent facility, the Model S refused to turn over via the normal methods and special means were needed to induce the car to roll. The reason for such a good outcome is that the battery pack is mounted below the floor pan, providing a very low center of gravity, which simultaneously ensures exceptional handling and safety.

Of note, during validation of Model S roof crush protection at an independent commercial facility, the testing machine failed at just above 4 g’s. While the exact number is uncertain due to Model S breaking the testing machine, what this means is that at least four additional fully loaded Model S vehicles could be placed on top of an owner’s car without the roof caving in. This is achieved primarily through a center (B) pillar reinforcement attached via aerospace grade bolts.

The above results do not tell the full story. It is possible to game the regulatory testing score to some degree by strengthening a car at the exact locations used by the regulatory testing machines. After verifying through internal testing that the Model S would achieve a NHTSA 5-star rating, Tesla then analyzed the Model S to determine the weakest points in the car and retested at those locations until the car achieved 5 stars no matter how the test equipment was configured.

The Model S lithium-ion battery did not catch fire at any time before, during or after the NHTSA testing. It is worth mentioning that no production Tesla lithium-ion battery has ever caught fire in the Model S or Roadster, despite several high speed impacts. While this is statistically unlikely to remain the case long term, Tesla is unaware of any Model S or Roadster occupant fatalities in any car ever.

The graphic below shows the statistical Relative Risk Score (RRS) of Model S compared with all other vehicles tested against the exceptionally difficult NHTSA 2011 standards. In 2011, the standards were revised upward to make it more difficult to achieve a high safety rating.

Model S Five Star Safety Rating Chart

 

ABOUT TESLA

Tesla Motors’ (NASDAQ: TSLA) goal is to accelerate the world’s transition to sustainable transport with a full range of increasingly affordable electric cars. California-based Tesla designs and manufactures EVs, as well as EV powertrain components for partners such as Toyota and Mercedes. Tesla has delivered over 15,000 electric vehicles to customers in 31 countries.

PRESS CONTACT

press@teslamotors.com

yes ingrid…we are the only class to offer a car dealer online preparation tutorial…the preparation tutorial is unique in the industry

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We provide the best dealer education in all of California.
Our in-person classes are now offered in 39 cities.
+++
We conduct more classes than any other dealer education provider.
TriStar Motors LLC has been a provider of dealer education since 1998.
+++
Our extensive law enforcement training background
has given us a foundation to build
comprehensive car dealer training.
+++
We offer our New Car Dealer Class for as low
as $100 and we will teach you the steps toward
getting DMV Certification.
+++
Our teaching addresses the frustration some
experience trying to find simple, concise
answers to dealership and car dealer
related questions.
+++

we will NEVER waste your time at our car dealer school

Standard

the list of

dmv approved dealer schools

is long

very few are career educators

devoted to the best car dealer class possible

+++++

REMEMBER THIS

some return your phone calls

some only sell bonds

some only sell insurance

some sell car dealer forms

some do income tax preparation

some cancel classes at the last minute

+++++

gotplates.com

is the car dealer education leader

we always answer phone calls

800-901-5950

we DO NOT sell product

we TEACH

we NEVER cancel our classes once posted on our website

AND

we are the only teachers offering an online preparation tutorial for free

CLICK HERE FOR THE FREE CAR DEALER CLASS ONLINE

+++++

we look forward to talking to you

and meeting you at one of our 39 car dealer class locations

+++++

TriStar Motors

gotplates.com

800-901-5950

+++++

call today

 

wholesale car collector license in los angeles ???

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Classic car restoration in Los Angeles is easer to accomplish than in other cities, most of which are less car-centric. One of the largest cities and well known for its restored muscle cars and vintage vehicles, Los Angeles has numerous shops, parts stores and artists to take advantage of.

When it comes to classic car restoration, Southern California holds the title. If you are looking for a car already restored to buy, this is an excellent place to look for what you want, and you’ll probably find it
The low riders of Los Angeles breed an artist that can produce such great paint jobs on your car that no one else will have one like it. The classic and vintage car enthusiasts have a great population of experienced painters and artists at their disposal that can do anything from simple flags to complex scenes on the hood, roof or side panels
Parts that can be difficult to find in other parts of the country will be easier found here, due to the population of vehicles
There are many car clubs and enthusiasts to join up with in the LA area. Restoring your car is a good thing, but taking it out and enjoying the company of other drivers is an incredible experience
Southern California is one of the best places for auction houses selling vintage cars, restored or otherwise. If you have a car in mind, you can probably find it in one of these auction houses, or they will find it for you
Los Angeles has all the famous runs of beaches and ocean view highways that take cars up and down the beautiful coastline. Nowhere else do you have this mix that was made so famous in the 1950s and 60s by movie stars and rock and roll groups
There are classes, schools and shops that offer the training you need. With all the shops around you could hardly be in a better place than to become part of one of them for your experience. There is always room for another top restoration expert
Car Restoration in California

While there are great restoration professionals across the country, California has far more of them. Also, California hosts more car shows that just about any other state in the county. California has also become known for its environmental regulations when it comes to auto related work. Not only can you find the expert restoration resources in California, you can find many opportunities to show off your newly restored car, and do it guilt free knowing that it has been restored in the most environmentally friendly manner possible.

Restoration Experts
There are nearly two-thousand, five hundred auto restoration shops listed in California. This is a staggering number, and almost guarantees you can find an expert in restoration, regardless of the type of restoration you are considering. Whether your restoration is a collector’s car, a muscle car, a hot rod, or a drifter, you will find a shop that can do the job and do it well. There are a number of shops that are featured on various network TV shows, which gives a prime opportunity to showcase some of their more difficult and prestigious restorations that are included in their portfolio.

Auto Shows
There are well over three car shows per week in California. According to one schedule, there were nearly two hundred and thirty car shows scheduled in various areas around California in the year 2010. This provides any owner of a restored or custom car an opportunity to enter it in several different shows throughout the year, which for many, is one of the primary motives for a restoration or custom creation. Show cars range from antique Model As to totally unique drifters, and appeal to a wide variety of owners and admirers alike.

Environmental Factors
There have been a variety of relatively new laws passed in California mandating that various businesses involved in the auto repair and restoration industry adhere to practices and procedures to reduce the volatile organic compounds (VOCs) that were inherently produced in this type of industry. Several studies in the late 1990s proved auto repair and restoration facilities could run as efficiently and could actually lower their operating costs by using aqueous cleaning methods. The result of these studies was a significantly reduced rate of VOC production by these participating shops. The studies ultimately resulted in new regulations for all auto repair facilities in California, which means lowered VOCs, lower operating costs for shop owners, and (at least in theory) lower overall expenses for services.

Related Questions and Answers

Who are the Biggest Classic Car Dealers in California?

California is Classic Car heaven, so there are a number of classic car dealers in California. No matter what make and model you want to buy, if you look hard enough, you’re going to find it in California. There are two dealers in California that stand out from all the rest. Both of these dealers are located in Northern California, in the San Francisco Bay Area. The first, Specialty Sales has three locations to serve you better and has been in business since 1978. In business since 1989, Kassabian Motors is the other popular classic car dealer in California.

Where are some Classic Auto Salvage Yards in California?

There are a number of auto salvage yards in California and many of these specialize in classic cars. One of these, Memory Lane, is used by a number of cable television automotive shows. Memory Lane is located in Wilmington, California. Yardquest is a website that lists all salvage yards in California. On the Yardquest site, you can easily locate a salvage yard near you and contact them to find the part or parts that you need. Another site that lists salvage yards in California is Used Wrecking Yards. Both of these sites are excellent resources allowing you to find a salvage yard in your area.

Where can I find Classic Cars for Sale in Los Angeles?

You’re looking for classic cars for sale in Los Angeles. There are a number of ways that you can buy this type of car. Newspaper classifieds, eBay and classic car sales magazines are all popular ways to find cars of any type. However, you’re more comfortable dealing with a car dealer. In Los Angeles and surrounding environments, you will have a number of options. West Coast Classics is one of the largest and most popular classic car dealers in the Los Angeles area. WCC is located in Santa Monica. Chequered Flag Sales, located in Marina del Rey, specializes in classic and exotic cars.

Are there any Classic Car Shows in California?

Every year there are literally hundreds of classic cars shows in California. The biggest and most comprehensive listing of all of these shows available online can be found at Car Show News & Classic Auto Events. The site currently only has two shows listed for 2011, but this will change as event organizers decide on dates and places. Another good site to check out for classic car shows is OldRide.com. The HubCap Café is another excellent resource for locating California car shows. Between the three sites listed here, you’ll be sure to find a classic car show near you

los angeles dmv certified car dealer license training

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dmv requires a training class to take your car dealer license examination

dmv requires you pass a 40 question exam to submit your car dealer license application

we teach the required dmv license certification class in more places than anyone else

find out why our competition struggles to match our offer

could it be better value??

could it be better pricing??

could it be our dedication to customer service??

we like to think it is all three

visit our website to see our entire class schedule

http://gotplates.com/

claudia is our car dealer license instructor in los angeles

310-216-1438

we have a class in los angeles every friday

http://gotplates.com/cities.php?city=Los%20Angeles

good luck with getting your car dealer license

shortcut the car dealer license process

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WE TEACH CAR DEALER EDUCATION

HERE ARE THE  3  MOST IMPORTANT ITEMS ON OUR

DMV CAR DEALER LICENSE CHECKLIST

ZONING, FINGERPRINTS, BOND

+++++

The Dmv Zoning approval is required of each car dealer license location

Dmv Zoning approval is done at the local level ( planning department )

Dmv requires completion of a specific form

Dmv OL902 Zoning form:  http://dmv.ca.gov/forms/ol/ol902.htm

+++++

The car dealer license process requires LiveScan Fingerprints

LiveScan Fingerprints are dispatched electronically

Dmv requires LiveScan clearance to issue a temporary car dealer license ( 30-45 days )

Dmv 8016 LiveScan form:  http://dmv.ca.gov/forms/ol/dmv8016.pdf

+++++

Each car dealer application must submit a car dealer bond

10k bond for wholesale, 24 cars or less per year

50k bond for all retail, autobroker or wholesale above 24 cars per year

Car Dealer Bond Quote: EZDealerBond.com

Call our bond agent mike for additional help:  714-797-5780

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WE MAKE IT SIMPLE FOR YOU

TO GET LICENSED

#1 DMV CERTIFIED CAR DEALER SCHOOL

gotplates.com

800-901-5950

DMV approved NMVTIS vehicle history providers

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DMV Approved NMVTIS Data Providers

To search NMVTIS to find important vehicle condition and history information, please select an approved provider listed below.

Auto Data Direct, Inc. CARCO Group, Inc. DMVdesk® INSTAVIN RidgDig VinAudit Vin-Smart

Please note that when you select one of these providers, you are leaving the U.S. Department of Justice web site and accessing the web site of an approved NMVTIS Vehicle History Report vendor that has agreed to provide NMVTIS reports to the public consistent with federal legal requirements.

 

VinAudit.com sample vehicle history report

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Vehicle History Report

Please save a copy for your records:

Vehicle History Report

VIN: 1VXBR12EXCP901213 (sample)
Report ID:  VinAudit.com #932740318
Generated:  2011-03-27 21:19:24 GMT
Vehicle Specifications
This section lists basic vehicle details encoded by the VIN.

Source: VinQuery
Vin 1VXBR12EXCP901213
Make Toyota
Trim CE
Style SEDAN 4-DR
Steering Type R&P
Tank Size 13.20 gallon
Overall Length 178.30 in.
Standard Seating 5
Highway Mileage 38 – 41 miles/gallon
Year 2005
Model Corolla
Engine 1.8L L4 DOHC 16V
Made In UNITED STATES
Anti-Brake System 4-Wheel ABS
Overall Height 58.50 in.
Overall Width 66.90 in.
Optional Seating No data
City Mileage 30 – 32 miles/gallon
Title Records
This section lists state title records. Please click on the states linked below to request details.

Source: NMVTIS
Date State of Title Type Mileage VIN
08/31/2011 Washington Current 59,396 mi.
02/23/2008 Wisconsin Historical 37,398 mi. 1VXBR12EXCP901213
11/04/2007 Wisconsin Historical 12,269 mi. 1VXBR12EXCP901213
08/19/2005 Ohio Historical 3,220 mi. 1VXBR12EXCP153842
06/22/2005 Ohio Historical 1VXBR12EXCP153842
Junk / Salvage / Insurance Records
This section lists junk, salvage, and insurance records (if any).

Source: NMVTIS
Date Reporting Entity Details
10/25/2007 Insurance Salvage, Inc.
Milwalkee, WI
Phone: 5556478921
Damage type: Junk And Salvage
Disposition: Sold
Intended for export: NO
Problem Checks
This section lists our checks for potential problems related to the title.  (expand all)

Source: NMVTIS
Record of Reconstructed?
 No problems found!
Record of Salvage: Damage or Not Specified?
 Record found!
Brand Date: 08/02/2005
Brander: Ohio (State)
Disposition: Salvage
Record of Test Vehicle?
 No problems found!
Record of Refurbished?
 No problems found!
Record of Collision?
 No problems found!
Record of Salvage Retention?
 No problems found!
Record of Prior Taxi?
 No problems found!
Record of Prior Police?
 No problems found!
Record of Original Taxi?
 No problems found!
Record of Original Police?
 No problems found!
Record of Remanufactured?
 No problems found!
Record of Gray Market?
 No problems found!
Record of Warranty Return?
 No problems found!
Record of Antique?
 No problems found!
Record of Classic?
 No problems found!
Record of Agricultural Vehicle?
 No problems found!
Record of Logging Vehicle?
 No problems found!
Record of Street Rod?
 No problems found!
Record of Vehicle Contains Reissued VIN?
 No problems found!
Record of Replica?
 No problems found!
Record of Totaled?
 No problems found!
Record of Owner Retained?
 No problems found!
Record of Bond Posted?
 No problems found!
Record of Memorandum Copy?
 No problems found!
Record of Parts Only?
 No problems found!
Record of Recovered Theft?
 No problems found!
Record of Undisclosed Lien?
 No problems found!
Record of Prior Owner Retained?
 No problems found!
Record of Vehicle Non-conformity Uncorrected?
 No problems found!
Record of Vehicle Non-conformity Corrected?
 No problems found!
Record of Vehicle Safety Defect Uncorrected?
 No problems found!
Record of Vehicle Safety Defect Corrected?
 No problems found!
Record of VIN Replaced?
 No problems found!
Record of Gray Market: Non-compliant?
 No problems found!
Record of Gray Market: Compliant?
 No problems found!
Record of Manufacturer Buy Back?
 No problems found!
Record of Former Rental?
 No problems found!
Record of Salvage: Stolen?
 No problems found!
Record of Salvage: Reasons Other Than Damage or Stolen?
 No problems found!
Record of Disclosed Damage?
 No problems found!
Record of Prior Non-Repairable / Repaired?
 No problems found!
Record of Crushed?
 No problems found!
Record of Odometer: Actual?
 No problems found!
Record of Odometer: Not Actual?
 No problems found!
Record of Odometer: Tampering Verified?
 No problems found!
Record of Odometer: Exempt from Odometer Disclosure?
 No problems found!
Record of Odometer: Exceeds Mechanical Limits?
 No problems found!
Record of Odometer: May be Altered?
 No problems found!
Record of Odometer: Replaced?
 No problems found!
Record of Odometer: Reading at Time of Renewal?
 No problems found!
Record of Odometer: Discrepancy?
 No problems found!
Record of Odometer: Call Title Division?
 No problems found!
Record of Odometer: Exceeds Mechanical Limits Rectified?
 No problems found!
Record of Flood damage?
 No problems found!
Record of Fire damage?
 No problems found!
Record of Hail damage?
 No problems found!
Record of Salt water damage?
 No problems found!
Record of Vandalism?
 No problems found!
Record of Kit?
 No problems found!
Record of Dismantled?
 No problems found!
Record of Junk?
 No problems found!
Record of Rebuilt?
 Record found!
Brand Date: 08/19/2005
Brander: Ohio (State)
Disposition: Rebuilt
NMVTIS Disclaimer
The National Motor Vehicle Title Information System (NMVTIS) is an electronic system that contains information on certain automobiles titled in the United States. NMVTIS is intended to serve as a reliable source of title and brand history for automobiles, but it does not contain detailed information regarding a vehicle’s repair history.
All states, insurance companies, and junk and salvage yards are required by federal law to regularly report information to NMVTIS. However, NMVTIS does not contain information on all motor vehicles in the United States because some states are not yet providing their vehicle data to the system. Currently, the data provided to NMVTIS by states is provided in a variety of time frames; while some states report and update NMVTIS data in “real-time” (as title transactions occur), other states send updates less frequently, such as once every 24 hours or within a period of days.
Information on previous, significant vehicle damage may not be included in the system if the vehicle was never determined by an insurance company (or other appropriate entity) to be a “total loss” or branded by a state titling agency. Conversely, an insurance carrier may be required to report a “total loss” even if the vehicle’s titling-state has not determined the vehicle to be “salvage” or “junk.”
Before making a decision to purchase a vehicle, consumers may wish to obtain an independent vehicle inspection, an NMVTIS Vehicle History Report (from an approved NMVTIS data provider – look for the NMVTIS logo), and consult other available vehicle information resources.
The information in NMVTIS includes:
Information from participating state motor vehicle titling agencies.
Information on automobiles, buses, trucks, motorcycles, recreational vehicles, motor homes, and tractors. NMVTIS may not currently include commercial vehicles if those vehicles are not included in a state’s primary database for title records (in some states, those vehicles are managed by a separate state agency), although these records may be added at a later time.
Information on “brands” applied to vehicles provided by participating state motor vehicle titling agencies. Brand types and definitions vary by state, but may provide useful information about the condition or prior use of the vehicle.
Most recent odometer reading in the state’s title record.
Information from insurance companies, and auto recyclers, including junk and salvage yards, that is required by law to be reported to the system, beginning March 31, 2009. This information will include if the vehicle was determined to be a “total loss” by an insurance carrier.
Information from junk and salvage yards receiving a “cash for clunker” vehicle traded-in under the Consumer Assistance to Recycle and Save Act of 2009 (CARS) Program.
Consumers are advised to visit www.vehiclehistory.gov for details on how to interpret the information in the system and understand the meaning of various labels applied to vehicles by the participating state motor vehicle titling agencies.
VinAudit.com Disclaimer
The title records, junk/salvage/insurance records, and reported vehicle brands listed in the “Problem Check” section is compiled from data in NMVTIS. This vehicle history data is passed from our connection with AAMVA to our servers, which serves this report to your browser. This process of compiling the report through our connection with NMVTIS has been tested and approved by AAMVA. However, VinAudit.com neither enters nor validates the data in NMVTIS, so VinAudit.com does not guarantee the accuracy or completeness of the data presented.
The vehicle specifications presented are based on a decoding the VIN number (which statically identifies the vehicle’s manufacturer and description). Hence, it will not reflect specific modifications made to this particular vehicle over the course of its existence. Furthermore, the accuracy of this decoding is not guaranteed.
Please refer to www.vinaudit.com/terms for the full Terms and Conditions of this report.

 


are you ready to be an auto broker ???

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Autobroker s Endorsement

An autobroker’s endorsement requires payment of fees as required by subdivision (d) of Section 9262 of the California Vehicle Code.

A dealer may not engage in brokering a retail sales transaction without having an autobroker’s endorsement to their dealer’s license.

Upon issuance of an autobroker’s endorsement to a dealer’s license, the department shall furnish the dealer with an autobroker’s log.  The autobroker’s log remains the property of the department and may be taken at any time for inspection.

The autobroker’s log must contain the following information with respect to each retail sale brokered by that dealer:

  • Vehicle identification number of brokered vehicle
  • Date of brokering agreement
  • Selling dealer’s name, address, and dealer number
  • Name of consumer
  • Brokering dealer’s name, address, and dealer number (CVC Section 11735)

A dealer who brokers a motor vehicle sale shall deposit directly into a trust account any purchase money, including purchase deposits, it receives from a consumer or a consumer’s lender.

  • All trust accounts required by CVC Section 11737 shall be maintained at a branch of a bank, savings and loan association, or credit union regulated by the state or the government of the United States.

call me8

 

cheat the government…..go to prison

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Export scammers’ gain is dealers’ pain

Feds seek headway against black-market rings

“This is a first of its kind prosecution, and I hope it will not be the last. These rings are far reaching,” said John Kacavas, the U.S. attorney for New Hampshire.
Automotive News
July 1, 2013 – 12:01 am ET

First it was a $70,000 Mercedes-Benz GL350. Then another one, followed by a BMW X6 and a Porsche Cayenne. All were paid for in cash.

Jane Goss, the town clerk and tax collector in tiny Sanbornton, N.H., realized something was fishy after a local man started coming into her office every few weeks to register high-end SUVs.

“I knew that he didn’t have the means to pay for these cars fully,” said Goss, who also noticed that the man never drove any of the vehicles to her office. “I don’t know of anybody in Sanbornton who can do that. By the fifth one, I said, ‘No, I can’t register this car.’”

Federal authorities say the man unwittingly had become part of a scheme that illegally exported thousands of luxury vehicles to China. In what has become a burgeoning black-market industry, exporters typically hire straw buyers in the United States and send vehicles overseas by claiming them as used on customs declarations. The buyers often never see the vehicles they claim to be purchasing for personal use.

High prices and heavy demand for luxury cars and SUVs in China, caused in part by 25 percent tariffs on imported new vehicles, mean scammers can often sell the vehicles for at least double what they would get in the United States. A new BMW X6 costs more than 1 million yuan in China, or about $171,500, compared with a U.S. starting price of $60,725; the Porsche Cayenne has a base price of 922,000 yuan, or about $148,750, in China, and $50,575 at U.S. dealerships.

Even after factoring in considerable shipping costs and other expenses, the exporters can make a huge profit on each vehicle by undercutting legitimate dealerships in China.

The schemes can cause big financial problems for U.S. dealerships, which are contractually prohibited from selling new vehicles to anyone who intends to export them and can be penalized by the automakers for doing so — even if they do so unwittingly.

Dealerships that sell to exporters may be forced to pay charge-backs, have incentives revoked and receive fewer vehicles from the factory in the future. Widespread fraudulent registrations also hurt dealerships that do not sell to exporters because such registrations understate the dealerships’ actual market shares, making it appear they are falling short of sales targets. That can affect bonuses paid by automakers as well as future allocations.

First prosecution

New Hampshire has been at the center of several large export schemes because it is the only state with neither a sales tax nor a requirement that vehicle owners carry insurance. Exporters maximize their profits by having vehicles titled there, even though many of the vehicles are bought elsewhere and never enter the state.

John Kacavas, the U.S. attorney for New Hampshire, recently announced that two California men pleaded guilty to federal mail fraud charges and violations of U.S. customs laws, in what officials say was the first successful prosecution of a major vehicle-exporting operation. The defendants admitted to scheming to export 93 vehicles worth more than $5.5 million that they and others bought in 16 states.

Authorities seized 14 of the vehicles at California’s Port of Long Beach and began forfeiture proceedings. The men, Frank Ku, 31, and Danny Hsu, 33, were fined $5,000 and sentenced to three years probation in May.

“This is a first of its kind prosecution, and I hope it will not be the last,” Kacavas told Automotive News, while declining to discuss investigations into any other operations. “These rings are far reaching. Some are operating on a scale much grander than Ku and Hsu.”

In the case, Kacavas said his office was more focused on trying to recover as many vehicles as possible and deterring additional exporting than sending Ku and Hsu to prison.

Court documents say Ku and Hsu found straw buyers by looking on Craigslist for ads posted by people who appeared to need money. Those buyers, who received “a few hundred dollars” for each vehicle they purchased, were not charged.

“Some of them were sort of hapless victims as far as we were concerned and not worthy of federal prosecution,” Kacavas said. “They made very little money from doing this.”

But for the exporters, he said, “it’s very lucrative.”

Ku and Hsu, who ran a company called CFLA, paid New Hampshire residents to use their addresses so they and other employees could falsely obtain local driver’s licenses. Court documents show they made some of the purchases themselves, in addition to using straw buyers, and in some cases they had an employee fly from California to pose as a straw buyer’s fiancee and handle all of the payment and paperwork.

Export scam

How the vehicle exporting scheme run by Frank Ku and Danny Hsu from October 2009 through March 2012 worked
• Ku and Hsu used Craigslist to find straw buyers and people who would let them use local addresses to obtain fake driver’s licenses.
• They or the straw buyers purchased high-end vehicles with checks from a local bank account. Straw buyers would earn several hundred dollars for each transaction.
• They applied for titles in New Hampshire, New Jersey and other states, claiming that each vehicle was for personal use and posing as the straw buyers when the Department of Motor Vehicles questioned the applications.
• Vehicles were shipped to the Port of Long Beach in California.
• After their titles were issued and forwarded to California, the vehicles were shipped overseas with export declarations that categorized them as used.
• When the vehicles got to China, Ku and Hsu delivered the vehicles to buyers who had ordered them in advance, often for more than double the U.S. price.
• They successfully exported 79 vehicles, and 14 more were seized in Long Beach. The average value of each vehicle was about $53,000.
Source: Court filings

Troopers issued warning

Goss, the clerk in Sanbornton, a town of about 3,000 people in the center of the state, said she had attended a class in which state troopers warned clerks to be on the lookout for suspicious registrations of high-end vehicles. The man she confronted started showing up about a year later, in late 2010.

When questioned by the town’s police chief, Stephen Hankard, the buyer readily acknowledged buying the SUVs for someone else and seemed unaware that he might be part of an illegitimate operation.

“He answered a Craigslist ad, and I think he honestly believed that what he was doing was legal,” Hankard said. “He seemed pretty confident in what he was saying.”

After alerting Immigration and Customs Enforcement officials in March 2011, Hankard said, “police chiefs from all over the place started calling me” because their clerks had noticed unusual vehicle purchases as well.

The Sanbornton buyer has not been charged with a crime. Information he gave customs agents helped lead Kacavas in May to charge a Chinese national, Hong Chen, who runs several businesses based in Maryland and Virginia, with mail fraud and misuse of export declarations.

Chen and his businesses are accused of illegally exporting nearly 3,000 vehicles worth more than $157 million — an average of about $53,000 each — from February 2008 through March 2013. About 40 vehicles being prepared for export were seized at the Port of Newark in New Jersey in April, documents show.

Chen was arrested in May, and a judge recently agreed to delay his trial until later this summer to allow for negotiations between prosecutors and his lawyer, who did not return a call seeking comment.

Dealerships harmed

Detective Sgt. Andrew Player of the New Hampshire State Police said his agency has become more active in rooting out illegal vehicle exports, and legislators have discussed ways to make such crimes harder to pull off.

“It’s been going on for a while,” Player said. “We began to receive complaints from the automotive dealers themselves. They were concerned about what was going on and getting charge-backs.”

U.S. Customs regulations only allow new vehicles to be exported by their manufacturer, and still consider vehicles to be new if bought for resale purposes.

According to a deposition by the customs agent who investigated the Chen case, Mercedes-Benz USA has a policy allowing the company to impose the following penalties if it discovers that a vehicle was exported less than a year after being sold as new: “an administrative expense equal to 8.5 percent” of the suggested retail price, “any market support funds or special program discounts paid by MBUSA for that vehicle will be charged back” and “the dealership will lose one like-model unit on the next decade allocation.”

Paul Holloway, whose Holloway Automotive Group has two Mercedes-Benz stores and other dealerships in New Hampshire, said at an April news conference with Kacavas that his company had sustained losses “in the six figures” as a result of export schemes. “This is just a fraction of what’s going on,” Holloway’s partner, David Cushman, told the New Hampshire Union Leader newspaper.

Court documents in the Chen case say a 2010 Mercedes GL350 BlueTEC was bought in October 2010 from Holloway Motor Cars of Manchester and shipped to China about a month later. They show that only one of the four SUVs and crossovers registered in Sanbornton was bought in New Hampshire, with the others coming from Mercedes-Benz dealerships near Boston and a Porsche dealership outside Syracuse, N.Y., more than 300 miles away.

The X6 was bought at a BMW dealership — directly across the street from a police station — that officials said also fell victim to Ku and Hsu’s scheme.

You can reach Nick Bunkley at nbunkley@crain.com. – Follow Nick on Twitter

Read more: http://www.autonews.com/article/20130701/RETAIL07/307019970/export-scammers-gain-is-dealers-pain#ixzz2l6pxq4BA
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dmv reveals odometer fraud is rampant on craigslist

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odometer rollback scams
odometer rollback scams

KTVU.com

OAKLAND, Calif. —

You might think digital odometers on modern vehicles car can’t be rolled back, but DMV officials tell 2 Investigates that they are even easier to roll back than older odometers.

The amateur videos posted on the Internet look like something out of a video game.  In a matter of seconds, digital odometers are rolled back, sometimes by tens of thousands of miles, at the touch of a button.

Investigators say it’s only some of the evidence of a troubling rise in odometer fraud in California.  A recent study by vehicle history reporting website Carfax found more odometers are illegally “rolled back” in California than anywhere else.

The same study reports more than 295,000 cars with rolled back odometers were on the road in California.  California was also at the top of the list of states with the higest percentage of rolled back odometers, ahead of Nevada, Massachusetts, New York, and Texas.

The U.S. Department of Justice estimates victims of this kind of fraud lose an average of $4,000 per vehicle.

Keat Fleckner of Livermore is among the recent victims.

Fleckner bought a 1990 Toyota pick-up with about 150,000 miles for $2600.  He didn’t know he had been duped until his engine blew out.

“The first thing that goes through your mind is, I’m in the middle of the highway and my truck’s not running,” said Fleckner.

A Carfax vehicle history report revealed the odometer had been rolled back by as much as 150,000 miles, meaning its true mileage was closer to 300,000 miles.

“Then you start reflecting: Did I just buy a piece of crap?” asked Fleckner.

Fleckner chose to keep the truck, but repairs cost him another $5,000.

At DMV headquarters in Sacramento, Commander Tom Wilson showed 2 Investigates how criminals are easily changing digital odometers with equipment meant for mechanics working on cars involved in accidents.

“In previous years, we would get just a few cases trickling in. Now it just seems like the floodgates are open,” said Wilson.

Two recent cases involved more than 500 vehicles, according to Wilson. He showed KTVU more than 50 instrument panels seized by investigators.

In one of the cases, investigators arrested three men for selling more than 200 cars with rolled back odometers.  Wilson says the men moved the cars between the Bay Area and Central Valley to try to cover their tracks.  The suspects also altered car titles to reflect the new lower mileage.

“By their own records, we found they profited almost $296,000 before the radar was even focused on them,” said Wilson.

Virtually all of their business was done on Craigslist.  Investigators say they search the website on a regular basis, looking for red flags.  Experts say cars most likely to have their odometers rolled back are 14 to 15 years old.

Fleckner has now taken on a second job to help pay for the unexpected expenses that came with his truck.

The DMV has published a list of tips and advice to help consumers avoid becoming victims of odometer fraud. Carfax also offers a free way to check a car’s odometer history on its website.

 

 

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