Dealer's Demise Worries Buyers
http://www2.tbo.com/content/2008/sep...orries-buyers/

TAMPA - When a car dealer goes under, it can be a nightmare for customers.

Everything from new car titles to car loans can end up scrambled, or
worse, frozen, amid a bankruptcy process - turning a major purchase of a
car or truck into a major headache.

That's the concern for customers of Bill Heard Chevrolet, the nation's
largest Chevrolet dealer, which closed operations in Plant City on
Wednesday amid financial problems. The parent company, Bill Heard
Enterprises of Columbus, Ga., operated 13 dealerships in Tennessee,
Georgia, Arizona and Florida, including locations in Plant City and Sanford.

Randy Jackson of Tampa gave the Plant City dealership $2,000 in cash
last week as a deposit on a new $16,000 HHR sport wagon. Now he can't
get anyone to answer the phone at Bill Heard.

"How can they just take my money?" Jackson said. "I'm freaking out."

For now, there's a short list of places customers can call for help
other than the dealership. Chevrolet has a hot line for customer issues,
but General Motors dealers run their own businesses and financing, so
corporate customer service may not be able to help. Customers also can
call the state's Department of Highway Safety and Motor Vehicles, which
regulates new car dealers in Florida.

As of Thursday evening, the Plant City dealership had not filed
bankruptcy protection paperwork in Florida or Georgia, where the parent
company is headquartered.

Sticky Problems

Customers can get caught in the middle when dealerships go under.

When Tampa's Bob Wilson Dodge dealership filed for bankruptcy protection
in April, some customers learned that the dealership never paid off the
loan on their trade-ins, leaving them with two loan payments - one for
their new car, one for the old car they didn't have anymore.

Others found that their deposits on new cars had disappeared. That
happened to Don Maifeld of Lake Placid, who dreamed of buying a
retro-style Dodge Challenger and sent a $5,000 deposit to Bob Wilson
Dodge. No Challenger ever appeared.

"I've sent them lots of e-mails, but never hear back," Maifeld said. "I
want answers or my money back."

These are tough times for auto dealers. The economic downturn has put a
damper on new car sales of any brand, and U.S. car companies are feeling
more of the pain.

Sales of new cars in the United States could fall 5.4 percent, to 14
million cars, in 2008.

On Thursday, the Courtesy GMC, Pontiac, Buick dealership in Orlando
closed its sales doors. Executives could not be reached for comment.

Will Some Reopen?

Even before the Bill Heard closure, the company faced issues with some
of its business practices. In 2007, two of its dealerships in Florida
signed a $400,000 settlement with the state attorney general's office
over what the state called "numerous misrepresentations" in advertisements.

Still, the closure came as a surprise to General Motors, spokeswoman
Susan Garontakos said Thursday. "This is all new to us, too. We found
out about this Wednesday when reporters started calling us saying it was
closed."

Some of the Bill Heard dealerships could reopen, she said. General
Motors has shown interest in the company's Scottsdale, Ariz., location;
it could be sold to another dealer or opened to a pool of candidates.

Eventually, GM will look at the Plant City location and review options,
such as offering it to other companies that want to open a dealership,
Garontakos said.

For Bill Heard customers, a lot will hinge on whether the company files
for bankruptcy protection. If the company does file Chapter 11
reorganization, or worse, Chapter 7 liquidation, many recent customers
can find themselves in a long line of creditors that are owed money.

That bankruptcy process can take months to proceed as federal courts
sort out the order of what and whom to pay and in what portions among
taxes, banks, lawyers, owners and car customers.

NEED HELP?

For customers with questions, here are some places to contact:

•Dealership: www.billheard.com; click on "Customer Hotline"

•General Motors/Chevrolet: www.chevrolet.com

•Chevrolet Customer Assistance Center: 1-800-222-1020

•Florida Department of Highway Safety and Motor Vehicles, which
regulates new car dealers: (850) 617-2000

•Florida Department of Agriculture and Consumer Services, which often
serves as an advocate for customers: 1-800-HELP-FLA (1-800-435-7352)


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