What would happen if you made a $350,000 mistake at your job?
It was an employee's mistake, but this Mercedes-Benz general manager will take the fall as the buck stops at the top.
"We screwed up," is all he can say.
Automotive News reports that thefts involving car carriers are increasing at luxury car dealerships. A Mercedes-Benz dealer in Lubbock, Texas, found out the hard way.
It was a $350,000 2023 Mercedes-Benz AMG G 63.
Imagine a general manager showing up for work at the Mercedes-Benz dealership in Lubbock, Texas, he works for and finding out he just screwed up and made a monumental $350,000 mistake. The shock on his face is still sending tidal waves through the dealership.
This is the Way It Likely Went Down
The general manager arrived at work and found a message on his phone. The call came from another Mercedes-Benz dealer in Chicago, Illinois, to whom he had sold an expensive car, and the GM on the other line said, "We never received the AMG G 63 that you sent on the transport. Call me back asap."
Can you imagine the shock the Mercedes GM must have felt? His heart sinks to his stomach, and then he checks the paperwork. He calls back and says, "It says right here, we put it on a transport to your dealership. It was supposed to arrive three days ago."
"Well, we never received the car," the angry voice on the other end says. "You need to dig a little deeper and find out what happened. We've already sent you the check, and our bank says you cashed the $347,225 check. So you need to produce that AMG G 63, or heads will roll."
It Wasn't a Good Day
Automotive News says, "A Mercedes-Benz dealership in Illinois, Loeber Motors, purchased a 2023 AMG G 63, paying Mercedes-Benz of Laredo in Texas, and spent $347,225 for it."
"The Laredo store deposited Loeber's check, put the manufacturer's statement of origin and title in the mail, and arranged with Unlimited Car Carrier Inc. to transport the car in an enclosed truck."
Now, the Scam Begins
"When Unlimited's driver showed up to load the car, he initially was told the store couldn't locate the keys, then was later informed the car was not there. Someone else had picked it up three days earlier, and security camera footage showed a dealership employee handing over the keys to 'an unknown individual.'"
Loeber Motors, which did not receive the $ 350,000 AMG G 63 or a refund, is now suing Mercedes-Benz of Laredo, according to the report.
"Incredibly, and contrary to common sense standard practices in the automotive industry, Mercedes-Benz Laredo apparently gave possession of the vehicle to a third party without verifying the recipient's identity," the complaint said.
How Could This Happen?
The Mercedes-Benz employee was either sloppy, in a hurry, or both, and failed to obtain the proper documentation, paperwork, or a copy of the transport driver's license, according to the report.
"Typically, dealerships ask for official identification, transport documentation, and matching VINs, the complaint said, and many keep ‘detailed records of the handoff process, including signatures and time stamps.’"
Mistakes Were Made
Mercedes-Benz of Laredo's general manager acknowledged in a phone call that "we screwed up" but has still not returned the payment, the complaint stated.
It's Not An Isolated Incident
Car thieves have found a way to load an expensive luxury vehicle, such as the Mercedes-Benz AMG G 63, onto a fraudulent transport truck and then ship the car across the border to Mexico or have it shipped overseas.
Jeffrey Kulwin, a lawyer in Chicago for Loeber Motors, told Automotive News, "I don't think it's an isolated incident. It illustrates a pattern that dealers and carriers should take seriously."
It's a Lucrative Scam
The stolen Mercedes-Benz AMG G 63 is one of at least three lawsuits filed in the past few months that pit ripped-off dealerships against each other, according to the report.
"We Have a Mole, Guys"
In another dealer scam, George Saliba (@ceklidgt01q), who owns a car dealership in Ewing, N.J., has been taken by a new employee for $80,000. The elaborate scheme by a brazen employee is an unbelievable story I found while researching the Ford F-150 Shelby truck. I found this incredible story in George Saliba's TikTok post.
George says, "So, I have a mole, guys; I knew it. A few days ago, I asked my friends who worked for Dupont if they had ever had a mole working under them."
Imagine hiring a new employee to sell high-end vehicles wholesale to other dealers across the nation. You've worked hard to find rare trucks like the Ford F-150 Shelby, and your new salesman is out trying to sell it. He has no trouble selling it because he's selling it at a low price.
Your new salesman is a seasoned con artist. He takes you for $80,000 by selling luxury models at a price below their wholesale value. George Saliba is in utter shock and disbelief as his employee, Brett Holmes, is running a profitable scam deal while you have a customer on the phone. Check out the full story here.
And Here's Another Unbelievable Dealer Con Story
Imagine a Chevrolet dealer receiving a call from a customer who owns a 2023 Chevrolet Silverado 2500 Duramax pickup and wants to sell it. They want this truck because it's a desirable model with low miles, and it's in excellent condition.
What dealer wouldn't make this deal?
The Chevrolet dealer is willing to pay $51,000 for the truck and can then sell the four-wheel-drive LT Crew Cab trim with the Duramax diesel powertrain for $70,000—an easy $20,000 profit.
"I Almost Pulled the Trigger on the Deal"
The Chevrolet dealer salesman's vigilance saved the day. I can hear the sales manager saying, "I almost pulled the trigger on this 2023 Chevy Silverado Duramax for $51,000, but my vigilant salesman caught the fake VIN on the truck right before I cut the check. I was ready to sign the check; I'm so glad I didn't."
Wait, There's More
The truck has only 15,000 miles, and the salesman who took the call already has a buyer lined up to purchase it. So, he scheduled a time for the Chevy Silverado seller to come in, and after the truck is inspected, you will write out a check for the $51,000.
When the truck arrives, it's everything the dealer expected. So, you tell the Chevy truck seller to come back the next day, and the dealer's manager will cut a check for the full amount.
However, during the routine inspection, the salesman checked the vehicle identification number (VIN) of the Chevy Silverado, and the employee noticed that the VIN came back as invalid.
St George News says, "The same VIN was imprinted on stickers located on the side door, engine compartment, and near the windshield. The Stephen Wade Chevrolet dealer's staff then found the truck's actual VIN during a closer inspection and later learned the Chevrolet Silverado Duramax was reported stolen out of California in January."
Check out the whole story and what happened next as the story takes another twist.
How About You?
Do you have a car dealer story to share? Have you been burned by a dealer when buying a new car? If so, click the red Add New Comment link below and let us know. If so, click the red Add New Comment link below and let us know.
Check out my BMW and Mercedes-Benz story: I Walked Into a Mercedes and BMW Dealer, Waited 45 Minutes and No One Helped Me, I Own an AMG C63 and a 540i, So, Luxury Dealers, Count Your Days
I am Denis Flierl, a Senior Torque News Reporter since 2012. My 30+ year tenure in the automotive industry, initially in a consulting role with every major car brand and later as a freelance journalist test-driving new vehicles, has equipped me with a wealth of knowledge. I specialize in reporting the latest automotive news and providing expert analysis on Subaru, which you'll find here, ensuring that you, as a reader, are always well-informed and up-to-date. Follow me on my X SubaruReport, All Subaru, WRXSTI, @DenisFlierl, Facebook, and Instagram.
Photo credit: Denis Flierl
Comments
Dealerships need stronger…
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Dealerships need stronger protocols in place to prevent such costly errors. It’s not just about managing inventory, it's about safeguarding high-value assets to maintain customer trust and business integrity.
We need the companies like…
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We need the companies like central dispatch to vent better .more background checks on the companies that are able to be in their network. I don't think the dealerships are completely to blame. We also need to use better more reputable companies as well for transport. That will eliminate some of your issues.