Wisconsin DMV: False title, odometer fraud on the rise
MADISON, Wis. - The Wisconsin Department of Motor Vehicles is investigating a "growing number" of false titles statements and odometer rollbacks, officials said Thursday.
The DMV's Dealer and Agent Section uncovered an influx of out-of-state businesses licensed as wholesale dealers in Wisconsin. In the last two months, 32 of those dealers were revoked due to failure to maintain business facilities, officials said.
Other revocations, the DMV said, were due to unlicensed retail sales to consumers and false title statements and odometer rollbacks – two of the wholesale dealers rolled back more than 6 million miles over 64 vehicles.
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"The tremendous growth in the number wholesale dealers, many of whom are out-of-state dealer owners, puts consumers at risk from unscrupulous businesses who abuse their wholesale license," Wisconsin DMV Administrator Tommy Winkler said in a news release.
"Not only are consumers hurt, Wisconsin dealers who do business the right way are getting a bad name from those who abuse their wholesale license."
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The DMV also said Centralized Dealer Operations are a growing problem. The large facilities may house several hundred licensed wholesale dealers at one time within a shared space, but are often empty and only used as a business front.
Since 2018, when Centralized Dealer Operations first appeared in Wisconsin, the DMV said the number of wholesale licenses has grown exponentially – increasing by 1,194%. More than 90% of those dealers reside outside the state.
Wisconsin is one of the few states that offers wholesale dealer licenses to business owners. A Wisconsin wholesale dealer license allows businesses to only sell vehicles between dealer to dealer. A wholesaler may not sell vehicles to the public. These types of dealers offer a valuable service to the motor vehicle industry. However, in recent years, Wisconsin has seen a dramatic increase in the number of wholesale dealer licenses and consumer complaints.
The DMV has an online process to report complaints to further support car buyers.