Used Car News

The state of New Jersey and a national floor planner reached an agreement to secure the titles of vehicles purchased from a now closed used-car store.

“New Jersey families and individuals who have fulfilled their obligations in good faith should not and will not have their property held hostage based on the closure of a car dealership,” said New Jersey Gov. Jon Corzine in a statement.
Automotive Finance Corp. agreed in late September to provide the titles for the approximately 20 vehicles that consumers bought from GalaxyMotors in Rahway, NJ.
The Division of Consumer Affairs will make arrangements for distributing the titles.
Galaxy Motors went out of business over the summer without transferring the titles.
AFC filed papers in Arkansas to repossess the vehicles.
This prevented the New Jersey customers from receiving titles for their vehicles, even though they had paid for them in full.
A valid title is required to obtain license plates in New Jersey.
The state’s Motor Vehicle Commission issued the customers temporary tags for 30 extra days until the issue was settled.
Based on police reports, Consumer Affairs believes at least 24more
consumers are awaiting titles to the vehicles they purchased.