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Sep 16, 2020
9:25:29pm
OU Cougar All-American
Help me understand car financing. Guy gets cars from an auto auction
Apparently he writes a check for the car, they keep title, he sells the car and the auto auction cashes check and he gets title to car, which he then holds on to till the people pay off the car (self financed lot). But the auto auction cashes the checks anyway after a period of time, even if it hasn’t sold yet.

But unfortunately he’s in a cash crunch so he told them the checks will bounce, but they are sending them through anyway. Also he can’t provide titles to his customers who have completed their financing contracts.

I’ve identified the following potential issues other than a raft of lawsuits
1. Bad check prosecution
2. Auto auction repos cars
3. Customers allege fraud

Anyone seen this before, this seems like a pretty flimsy financing house of cards. I’m sure there has to be more to how this is done can you tell me where the error was made
OU Cougar
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OU Cougar
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