The Expert Podcast

• The potential problems when a car dealership goes out of business.
• Focus on issues like title problems and lien release complications.

• Carvana reported losing $1 billion in Q4 of 2022.
• Stock price dropped by 90%, signaling potential risks for buyers.
• What happens if you buy a vehicle from a dealership like Carvana, or any distressed dealer, and haven't received your title?

• Without receiving the title, you may struggle to prove ownership if the dealer goes out of business.
• Some states have licensing laws that may help you get a title, but it’s still a complicated process.

• Always ask to see a copy of the title before paying.
• Many dealers operate on floor plans (credit lines from banks or auctions), which means the title might be held by the bank or auction.
• Ensure the dealer has the title in hand, even if it's partially redacted, to avoid complications later.

• Act quickly—contact the dealer, DMV, titling authority, and licensing authority.
• Be proactive and keep following up to ensure your title is processed promptly.
• If the dealer is behind on paying off titles, your proactive approach may ensure you're first in line.

• Don’t wait until your temporary tag expires or you face legal issues like your car being towed.
• Even with dealerships in financial distress, being proactive will increase your chances of getting your title.

• Title problems can arise from any dealer, not just Carvana, especially if the dealer’s financial situation is unstable.
• Protect yourself from title problems when buying a used car.

• Stay tuned for our next video where we’ll discuss lien releases and the impact of a major “Buy Here Pay Here” lender going out of business.