DRIVERS have been left paying for two cars after trading in their vehicles at a dealership that abruptly closed.
Two customers of Bayside Mitsubishi in La Porte, Houston, Texas, complained that the dealership failed to pay off the loans on their trade-in vehicles, leaving them in a difficult financial situation.
A dealership in Houston, Texas, has closed abruptly[/caption]
Bayside Mitsubishi shut its doors over the weekend, with gates locked, most cars gone, and the lights off.
According to the general manager, the business officially closed due to “cash flow problems.”
Many customers reported not receiving their vehicle registration or licence plates, and some accused the dealership of not paying off the loans on their trade-in vehicles.
As a result, customers Lucia Sufentes and Autyana Hodges are now stuck with a second car loan for vehicles they no longer possess.
Speaking to KPRC 2, Hodges said: “They defrauded me.”
She added: “I’m trying to get a house with my husband and this will harm my credit long term. It’s going to tank everything.
“It’s going to turn into a repo that will destroy my credit and mess up everything my husband and I are trying to build.”
General Manager Kenny O’Kane confirmed the closure and the dealership’s unpaid bills, and even revealed he hadn’t received a paycheck since September.
Bayside Mitsubishi, which was once featured by Mitsubishi in their January 2022 ‘Dealer Spotlight’, is owned by Alex Sinno’s A&F Holdings, LLC.
Sinno frequently posted about his dealership on social media, writing, “I found La Porte Mitsubishi, and I fell in love with the quality and value of Mitsubishi vehicles.
“The dealership needed work, but after bringing in a new finance team and changing the name, we are finding tremendous success.
“The new vehicles are beautiful, and they’re flying off our lots.”
Sinno is currently being sued by the other owners of another dealership he part-owns, Veteran Chevrolet near Corpus Christi.
Additionally, the company that finances cars sold at Bayside Mitsubishi, Nissan Motor Acceptance Group, is suing the dealership for over $4.4 million.
Sinno’s company has also filed a lawsuit against their insurance brokerage, claiming they “failed to secure sufficient or adequate coverage for this property.”
Closer to home, the financial troubles at Bayside Mitsubishi have been attributed to money mismanagement.
O’Kane blamed the previous general manager for frivolous spending and not monitoring the bank account, which is now under $1,000.
Hurricane Beryl further exacerbated the situation.
O’Kane added: “That was really the icing on the cake.
“The previous manager totally mismanaged the funds. It’s just too far gone.”
