Renick Cadillac to Close 4 Days to Settle Ad Case
Renick Cadillac, one of Orange County’s oldest auto dealers, will close its doors for four days starting Thursday as part of a settlement of false advertising charges brought by the state Department of Motor Vehicles.
The DMV charged that the 38-year-old Renick dealership sold at least 18 Cadillacs by advertising them as cars formerly driven by General Motors Corp. executives.
But the cars were actually former rental vehicles, said A.J. Caruso, area commander for the DMV investigations bureau in Fullerton. None of the cars were driven by GM executives.
State law requires that car dealers tell buyers the details of a used car’s history.
“Saying it’s an executive car creates a connotation in your mind as a consumer,” Caruso said. “You think, this is obviously a primo vehicle.”
Caruso’s department charged Renick with false advertising, and the dealership agreed to the suspension, which is effective through Sunday. The dealer will offer each of the 18 car owners $750 in restitution. Those who accept the offer must also agree not to sue the dealership.
Renick did not admit to any wrongdoing, said John McGuire, a Santa Ana lawyer who represented the dealer.
McGuire said some buyers had actually signed papers acknowledging that the car was a former rental car. The DMV’s argument was that the document was confusing and after the fact.
The sales were made in 1988 and early 1989, and McGuire said the cars are running well. He said he sees no difference between a former rental car and a car used by a company executive.
“I think it’s psychological,” McGuire said. “I, myself, would question the executive car, where the owner may be more careless about oil changes” and other maintenance.
He said the dealership offered to buy back any of the cars at the price the customer paid, but only one person took the offer.
Buyers, for example, saved as much as $10,000 off the retail price of a Seville model with 5,000 miles on it, McGuire said.
No estimate was made of how much the four-day suspension will cost Renick, but other automobile dealers have paid up to $30,000 a day in fines to avoid closing, Caruso said.
