Is American Car Center Going Out Of Business? American Car Center, a used car retailer, has filed for bankruptcy. The company ceased all operations on February 24.
Many customers are concerned about what will happen to their vehicles. They have leases with the company and want to know how this will affect them.
The I-TEAM reached out to Joshua Feygin, a civil law attorney who has experience with car leases. He says it’s not a good idea for customers to miss payments and then have their vehicle repossessed.
How did the company go out of business?
The used car company American Car Center made news in February when it suddenly closed all of its dealerships. It is now laying off hundreds of employees and filing for bankruptcy protection in a bid to pay off its debts.
The company has 40 dealerships mainly located in the southeast, including nine in Georgia. It is headquartered in Memphis, Tennessee.
WREG learned American Car Center is attempting to recoup its losses through a Chapter 7 bankruptcy filing. In the process, the company wants to liquidate its assets valued at $50 million to $100 million.
Many customers are concerned about their vehicles. They are wondering what will happen to their car payments and whether or not their vehicle will be repossessed.
The company has a direct payment line that allows you to make your payments over the phone or online. However, the site is not what you would expect. It redirects you to the website of West Lake Portfolio Management.
Why did the company go out of business?
The company went out of business because it was unable to continue paying its bills, according to people familiar with the situation. The used car dealership, which specialized in financing people with poor credit histories, said it was shutting down its headquarters on Friday.
The used car dealer filed for bankruptcy in Delaware, court documents show. It listed assets of $50 million-$100 million and liabilities of $50 million-$100 million.
American Car Center, backed by York Capital Management LLC, has more than 40 dealerships mainly across the Southeast. In Georgia, it has locations in Chamblee, Conyers, Marietta, Riverdale and Stone Mountain.
In Alabama, it operated in Birmingham, Dothan, Florence, Huntsville, Mobile, Montgomery and Pelham. WAFF 48 has gotten several complaints from customers about the dealerships in Alabama.
In some cases, customers say they can’t get a loan payoff amount or a permanent license plate. Others, including Sylvester Wilkinson, said they are being denied access to their online account.
How will the company go out of business?
A month after the company closed its doors, many customers are still wondering how their car lease will be handled. They told ABC Action News they are worried about their vehicle and fearing it may be repossessed.
WREG talked with Joshua Feygin, a civil law attorney in Hollywood who has experience in car leases. He said it’s important to keep making your payments.
He also advised customers to get new temporary license plates as soon as possible. He said they should make sure to get a bill of sale from American Car Center and then apply for the title at their local county clerk.
Earlier this week, the Arkansas Attorney General’s Office announced that West Lake Financial Services has taken over payment collection for former American Car Center customers. If you have questions, you can reach out to West Lake via their website or call them at 888-792-9955. They also shared tips for consumers on the state’s consumer alert page.
What will happen to my car?
If you have a car loan with American Car Center, you may be wondering what will happen to your car. The company made headlines in February when it abruptly closed all its locations.
ABC Action News has heard from customers who are anxious about what will happen to their vehicle if they miss payments. They said they have been unable to get any information about their car loans or obtain a title for their vehicles, which has been critical for making payments on time.
The good news is that Westlake Financial Services, which purchased the loans from American Car Center, has taken over the process for customers to get their titles and pay their bills. They advise customers to create an account on their website and continue making payments online, by phone or in person at a “check free pay” location.
Visit also at Tech In Journal for more qaulity tech information.