AutoNation Dealerships to Pay $650,000 for Failing to Transfer Car Ownership on Time
LOS ANGELES — District Attorney Nathan J. Hochman announced that AutoNation dealerships in California will pay $650,000 to settle a lawsuit. The lawsuit claims that, since 2019, these dealerships failed to properly transfer ownership of used vehicles to consumers within the required time, breaking California consumer protection laws.
"Californians have the right to own the cars they buy without worrying about delays in receiving their title and registration," District Attorney Hochman said. "Laws like these protect consumers from businesses that take money without fulfilling their obligations. The Los Angeles County District Attorney’s Office will hold companies accountable for breaking these laws. I thank my office’s Consumer Protection Division and our partners across California for their efforts to protect consumers."
The investigation was led by the Los Angeles District Attorney's Consumer Protection Division, with help from the consumer protection teams of district attorney offices in Santa Clara, San Francisco, Sonoma, Ventura, and Riverside counties. The case was filed in Santa Clara County Superior Court.
As part of the settlement, the AutoNation dealerships were ordered to pay:
$450,000 in civil penalties
$150,000 for investigative costs
$50,000 for statewide consumer protection efforts
In California, used car dealers must submit an application to the Department of Motor Vehicles (DMV) to transfer vehicle registration to the buyer within 30 days of the sale. The same deadline applies to the transfer of ownership. Dealers can be given extra time if the DMV returns an incomplete application.
As part of the settlement, AutoNation dealerships have agreed to implement several new policies to ensure timely transfers of ownership and registration, including:
Stopping the sale of cars that do not have a title or a clear path to getting one within 30 days
Deferring sales commissions on cars that cannot be transferred on time
Requiring smog checks and VIN verifications before sales, as needed
Having at least 10 employees available at all times to process ownership transfers
Designating a regional manager or higher-level employee to oversee compliance
The dealerships resolved the case without admitting to the claims in the lawsuit, but they cooperated with the investigation and took steps to improve their practices.
Deputy District Attorney Steven Wang and Head Deputy District Attorney Gina Satriano from the Consumer Protection Division handled the case.
AutoNation is one of the largest automotive retailers in the United States, with over 300 dealerships and facilities in at least 20 states, including California.
