Action 9 hidden camera investigation exposes used car sales tactic

BREVARD COUNTY, Fla. — An Action 9 investigation exposes how some "Buy here pay here" car dealers keep reselling the same vehicles that leave customers stranded and broke.

Dealers make big money putting cars they've repossessed because the last buyer could not afford repairs and payments, back on the lot

Action 9 tried to buy a 2002 SUV at AutoMax in Melbourne on hidden camera. It's the same Kia that same dealer sold to Laurie Wessel just four weeks earlier.

"In the end we ended up with no car and no money," Wessel said.

She said the SUV had a rough engine, bad brakes and a rear window that collapsed.

Her son pried off the door cover to see what the problem was.

"Inside was a rotten stick to prop the back window open," Wessel said.

She said she had to return it and lost a $700 deposit.

"I felt stupid," she said.

Channel 9's Todd Ulrich found that same SUV for sale at AutoMax and a salesman told an Action 9 producer it cost $5,000 and it was in good shape.

"He told me the SUV only needed a new spark plug," the producer said.

While still undercover Action 9 got an inspection on the car before the purchase.

Repair expert Howard Fulton found what Action 9 suspected.

"Is this a potential nightmare for a buyer?" asked Ulrich.

"Oh exactly it's horrible," said Fulton.

The biggest issue was a failed water pump. All the water drained out in an hour.

Fulton said Action 9 would have trouble had it bought the car and driven away.

"It would never make it to Orlando. It might not make it to Cocoa," Fulton said.

He found brake pads so worn, one fell off. And he found that same stick propping up a busted window.

Fulton said critical problems were covered up.

It's called "churning," when a dealer recycles vehicles with mechanical nightmares.

"When it breaks down and you can't make payments it's repossessed and the dealer turns around and sells it again and again," said Rosemary Shahan with Consumers for Auto Reliability and Safety.

Ulrich went to AutoMax in Melbourne for answers.

"Is there a manager here?" asked Ulrich.

"No I'm just trying to buy a car," replied the man in the office, who was the manager who handled the car deal with the producer who was working undercover.

"Was that car rigged just to put it on the road for 30 or 40 miles? Was it safe to drive?" asked Ulrich as the manager walked away closing a door behind him.

Later AutoMax told Ulrich the SUV was not supposed to be sitting out front for sale, and someone made a mistake.

The dealership also said its "as is" cars come with a 50 percent voucher to cover repairs.

Automax response:

We at Automax would like to thank you for the opportunity to respond to your piece. During your September 25th 2015 visit to our establishment, the owner was not present due to the fact that it was his son's 13th birthday. Unfortunately at this time, the 2002 vehicle with over 140,000 ( one hundred forty thousand) miles in which we spoke about on October 27th 2015, was mistakenly allowed to be taken for a test drive and accordingly to a mechanic of your choosing. The 2002 vehicle had been inadvertently parked up front as it was awaiting delivery for repair. We have hundreds of vehicles, some of which are rotated throughout the day each week for various reasons i.e. detailing, repairs, test drives, auctions, etc. With that said, we would like to assert that we encourage each customer to have their vehicle inspected by their mechanic if this is a desired course of action. During the point of sale we offer each customer the option of purchasing an extended warranty for select vehicles in inventory. The inventory that does not qualify for the extended warranty purchase is sold "as is". However, the customers that choose the preceding vehicles are given a complimentary 50% (fifty percent) voucher to a local mechanic that provides service for our customers in the event that their "as is" vehicle needs attention. The voucher is outlined in the buyer's paperwork and the buyer is in receipt of a copy of the voucher along with the remainder of their paperwork upon completion of the sale. This correspondence encompasses the only written, verbal or any transmission therein from Automax of Brevard.

Cox Media Group