Resolving an $18K Dealer Dispute with Manheim

Access to On-the-Spot Legal Advice for ALG Members

One of the benefits of being an ALG member is access to on-the-spot legal advice when a problem arises, or the drafting of simple settlement agreements or correspondence without the need to fork over a hefty retainer and pay a lawyer $500 an hour.

A Sacramento Dealer's Frustrating Dispute with Manheim

A Sacramento dealer and ALG member recently had a frustratingly ugly dispute with Manheim. The dealer was interested in a vehicle, but due to the InSight Condition Report condition grade of 2.8 and check engine light, the dealer passed. In a later condition report the vehicle was upgraded to a 3.8 and the check engine light annotation was removed. (It happens — could have just been a faulty sensor.) The dealer paid over $18,000 for the car, took delivery, and promptly discovered the engine was badly damaged and the unit could not be sold on the retail market, other than at a very steep loss.

Manheim Gave the Dealer the Run-Around

Over the next three months, the dealer was subjected to a run-around of unreturned phone calls, emails, and text messages, passing to and from multiple Manheim employees at multiple levels of the organization. It was like the nightmarish stairs leading nowhere in the Winchester Mystery House. When the dealer’s (impressive) patience was finally depleted, he came to ALG.

Crafting a Powerful Demand Letter

We wrote a demand letter to Manheim on behalf of the dealer, detailing the dispute, and while not casting aspersions as to any intentional conduct by Manheim as opposed to the dealer just getting caught in a web of miscommunications, gave the auction house two weeks to respond with a remedy.

Resolution and Remedy: Manheim's Response

A week later in-house counsel for Manheim contacted us with an offer to unwind the deal and reimburse the dealer’s $18,400.

Dealing with a similar situation? Tell us about it.