State sues six used car dealers, alleging deception

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Indiana Attorney General Todd Rokita’s office has filed lawsuits against six used car dealers for allegedly engaging in deceptive acts.

The lawsuits were filed against Indianapolis dealers Merliot Auto Sales, Cars R Us LLC and Phoenix Motors, as well as W Main Auto Sales in Greenfield, MG Motors in Peru, and Redelman’s Deals on Wheels in Greensburg.

“Indiana consumers deserve to get what they pay for,” Rokita said in a news release. “We won’t hesitate to bring lawsuits against car dealers who lie or fail to honor their end of agreements with purchasers. Deceptive conduct hurts consumers, and it hurts the reputation of the vast majority of Indiana car dealers who conduct business the right way.” 

Indiana Lawyer called phone numbers listed for each of the dealers and either could not leave a message or did not receive an immediate response.

MG Motors and W. Main Auto Sales each are accused of selling cars to consumers and failing to deliver titles. MG Motors allegedly failed to deliver 17 titles while W. Main Auto sales allegedly failed to deliver 22 titles.

Merliot Auto Sales is accused of selling 17 vehicles that had “salvage” title brands to unknowing consumers. Vehicles with “salvage” title brands cannot legally be driven on Indiana roads.

Cars R Us allegedly agreed as part of a vehicle sale to pay off the loan on the consumer’s trade-in vehicle. The dealership is accused of failing to make the trade-in payoff, leaving the consumer with multiple auto loans — one on their trade-in and one on their newly-purchased vehicle.

Phoenix Motors is accused of selling vehicles to two consumers while not actually owning those vehicles. The vehicles were allegedly then taken back by Phoenix and returned to their original owners, despite the consumers paying for the vehicles in full — leaving the consumers without their money or the vehicles they purchased.

Redelman’s Deals on Wheels lost its Indiana dealer license to sell vehicles in December 2023. Redelmen’s allegedly continued to sell cars without the required license.

The lawsuits seek injunctive relief, consumer restitution, civil penalties and legal costs.

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