So much fraud being uncovered in the car sector at this moment, especially in the used car markets:
About one in five cars sold by Tricolor in Texas over the past five years is a vehicle that it had sold at least once before, Barron’s found. One car sold seven times over that period, according to the analysis.
Tricolor has also been the target of more fines and violation notices from motor vehicle and financial regulators in Texas and California—where most of its 50 sales lots are located—than big, national used-car companies that sell far more vehicles, according to state complaint records.
Lapses include selling cars for which the company doesn’t hold title, delayed title transfers, and improper use of temporary license plates, according to citations from state regulators. As Barron’s has previously reported, similar missteps by
Carvana (CVNA) have resulted in past and ongoing suspensions of the company’s license to sell cars in states including Illinois and Michigan. Carvana has responded with lawsuits accusing state officials of overstepping their authority over what it characterizes as paperwork mistakes.