Ark. AG Files Suit Against Used Car Dealer
Little Rock — Arkansas Attorney General Dustin McDaniel filed a consumer-protection lawsuit against a Greenbrier used car dealership accused of selling vehicles while being unable to provide a clear title to the consumers who purchased those vehicles.
Carco of Arkansas Inc. and its owner, J. Eric Turner, have, in at least 59 instances, failed to deliver a title at the time of sale, according to the complaint filed in Pulaski County Circuit Court. Many times, Carco was not itself in possession of a vehicle's title because it had not fully paid for the cars it acquired from other dealers, such as auto auctions, before placing the cars for sale on its own lot.
McDaniel's complaint also alleges that Carco did not promptly pay off the balances on trade-ins it had taken from consumers, exposing the consumer trading the vehicle to liability and financial trouble, and preventing Carco from providing clear title to the next buyer.
"Vehicle owners are in an unmanageable position when they do not possess clear title to a car they've purchased," McDaniel said. "Without a title, a buyer can't register a car and legally drive it, and the buyer cannot obtain insurance for the vehicle. This practice is not acceptable, and the court should make sure that it does not continue."
According to the complaint, Carco did not fully pay for the cars it sold from its lot, so the dealers from which Carco purchased vehicles refused to turn over titles. When consumers bought the same cars from Carco, the dealership assured buyers that titles would be delivered shortly after sale. However, the defendants knew at the time they provided those assurances that they could not keep that promise.
It took the defendants an average of five months from the date of sale to deliver titles to consumers, the lawsuit stated.
Carco and Turner are accused of violating the Arkansas Deceptive Trade Practices Act and the Used Motor Vehicle Buyer Protection Act. McDaniel asked the court to issue an injunction prohibiting the defendants from continuing the deceptive business practice and to award civil penalties and restitution to consumers.
More Industry

Kia Closes Out Summer With a Bang
Its U.S. subsidiary broke multiple records in August, in part due to a surge of demand for hybrids models.
Read More →
Indiana Dealership Changes Hands
A 30-year-old Ford dealership in Indiana has a new owner and will soon be undergoing renovations to meet manufacturer requirements.
Read More →
Texas Dealership No Longer in the Family
The Ford store, a longtime cornerstone of the Houston market, is now part of one of the fastest-growing U.S. auto groups.
Read More →
Genesis Grows California Presence
The Cardinale Automotive Group opened its third Genesis rooftop in the Golden State, Genesis of San Bruno, a stand-alone dealership serving the San Francisco Bay Area.
Read More →
August Auto Sales a Mixed Bag
An early forecast shows strong business despite consumer hurdles, and hybrids are a big piece of their affordability coping strategy.
Read More →
EV Market Humming Along
July sales show steady growth as the segment stabilizes from last year’s artificial surge following pullback of federal support.
Read More →
Auto Loan Delinquency Rates Stabilize
Auto loans are a main driver of nonmortgage consumer debt, but delinquency rates stabilized in the second quarter across all credit risk tiers.
Read More →
EV Sales Recover in Q2
The EV sales roller coaster continues as numbers show improvement, but industry experts predict a year-over-year third-quarter decline and fourth-quarter jump.
Read More →
The Cheapest Hybrids to Fuel
The powertrain is increasing in popularity, in no small part due to its fuel economy. A new report lists the most efficient hybrids on the market.
Read More →
Hybrids and SUVs Gaining Ground
The most recent Kelley Blue Book Brand Watch found that only two nonluxury brands increased in shopper consideration, buoyed by their hybrid and SUV offerings.
Read More →