Washington DC: 33 Auto Dealers Lose Licenses in Crackdown
06-29-09, 01:41 PM
#1
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Washington DC: 33 Auto Dealers Lose Licenses in Crackdown
D.C. Mayor Adrian M. Fenty announced today that 33 auto dealers have lost their licenses and 54 businesses have been cited for illegal conditions in a crackdown on used-car lots and auto-repair and towing lots.
The tally comes about six months after the city created new regulations to rein in the businesses that authorities say were a blight on communities. Across the city, dozens of vehicles cluttered lots until they appeared to be junkyards.
"There are a lot of used-car lots that cause a lot of grief, frustration and wear our constituents' patience to no end," Fenty (D) said as he stood in the lot of LJ Automotive, a Northwest used-car dealership and repair shop where the city towed away 26 cars. LJ's owners said they are trying to comply with the city's new regulations.
The rules limit the number of vehicles that can be stored outside and establish new business license requirements for salespeople and dealers, among other provisions.
The Department of Consumer and Regulatory Affairs has eased into the regulations, first starting with an educational campaign to get dealers to comply voluntarily. Tomorrow, the agency will begin enforcing more restrictions but will give waivers to dealers who applied for permits to give them more time to improve their lots. The remainder of the regulations will be enforced Sept. 1.
Used-car dealers have complained that the new regulations are driving them out of business in communities that need inexpensive vehicles and cheaper repairs. Council member Marion Barry (D-Ward 8) has been their most vocal advocate, calling the regulations unfair and costly. Used-car dealers must build storage facilities for vehicles because just four vehicles can be displayed on a lot at one time.
Attorney General Peter J. Nickles acknowledged that several businesspeople are having difficulty meeting the regulation that requires them to have a $100,000 bond. Insurers and banks are turning them down. Nickles said he is looking at that policy. Those businesses that say they want to come in compliance are getting help from the city and are getting extensions.
"We're tough when we need to be tough," Nickles said, adding, "We don't want to put legitimate businesses out of business."
DCRA is currently working with 14 such dealers.
Brothers Jon and Sotheany Leas said they don't know how long they will be in business, even with the city's assistance.
The owners of LJ Automotive said their dealership and repair shop have suffered under the new regulations. "Right now, me and my brother, we're fighting each other because we can't pay the light bill," Jon Leas said.
The cost of a license has "doubled, almost tripled," Sotheany Leas said.
The businessmen said they are hoping the city will ease the regulations in light of the difficulty many business owners are having and to keep them from leaving the city. "We want to sell to the community. They all know me," Jon Leas said.
LJ Automotive has been in the same spot on Blair Road NW for nine years. Jon Leas said the business is valuable to customers seeking that "first car for someone graduating from high school."
"We're gonna hang tough," Sotheany Leas said.
http://www.washingtonpost.com/wp-dyn...l?hpid=topnews
The tally comes about six months after the city created new regulations to rein in the businesses that authorities say were a blight on communities. Across the city, dozens of vehicles cluttered lots until they appeared to be junkyards.
"There are a lot of used-car lots that cause a lot of grief, frustration and wear our constituents' patience to no end," Fenty (D) said as he stood in the lot of LJ Automotive, a Northwest used-car dealership and repair shop where the city towed away 26 cars. LJ's owners said they are trying to comply with the city's new regulations.
The rules limit the number of vehicles that can be stored outside and establish new business license requirements for salespeople and dealers, among other provisions.
The Department of Consumer and Regulatory Affairs has eased into the regulations, first starting with an educational campaign to get dealers to comply voluntarily. Tomorrow, the agency will begin enforcing more restrictions but will give waivers to dealers who applied for permits to give them more time to improve their lots. The remainder of the regulations will be enforced Sept. 1.
Used-car dealers have complained that the new regulations are driving them out of business in communities that need inexpensive vehicles and cheaper repairs. Council member Marion Barry (D-Ward 8) has been their most vocal advocate, calling the regulations unfair and costly. Used-car dealers must build storage facilities for vehicles because just four vehicles can be displayed on a lot at one time.
Attorney General Peter J. Nickles acknowledged that several businesspeople are having difficulty meeting the regulation that requires them to have a $100,000 bond. Insurers and banks are turning them down. Nickles said he is looking at that policy. Those businesses that say they want to come in compliance are getting help from the city and are getting extensions.
"We're tough when we need to be tough," Nickles said, adding, "We don't want to put legitimate businesses out of business."
DCRA is currently working with 14 such dealers.
Brothers Jon and Sotheany Leas said they don't know how long they will be in business, even with the city's assistance.
The owners of LJ Automotive said their dealership and repair shop have suffered under the new regulations. "Right now, me and my brother, we're fighting each other because we can't pay the light bill," Jon Leas said.
The cost of a license has "doubled, almost tripled," Sotheany Leas said.
The businessmen said they are hoping the city will ease the regulations in light of the difficulty many business owners are having and to keep them from leaving the city. "We want to sell to the community. They all know me," Jon Leas said.
LJ Automotive has been in the same spot on Blair Road NW for nine years. Jon Leas said the business is valuable to customers seeking that "first car for someone graduating from high school."
"We're gonna hang tough," Sotheany Leas said.
http://www.washingtonpost.com/wp-dyn...l?hpid=topnews
06-29-09, 03:24 PM
#3
Lexus Fanatic
Doesn't surprise me. Even under the old, less-stringent regulations, there were some real sleaze-used-car places in D.C., particularly in the NE and SE areas of the city. One of the largest of them, Eastern Motors, advertises, "At Eastern Motors, your job's your credit". They often prey on uneducated people who have little knowledge of the financial risks that these places can be, or who don't know much about how to inspect a used car.
Last edited by mmarshall; 06-29-09 at 03:28 PM.
06-30-09, 07:05 AM
#5
...and, of course, Marion Barry is there on the side of the shady used car dealers. Considering what a complete and utter sleeze-ball Barry is, can anyone be shocked about this one?
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