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Wisconsin DMV investigates an increase in odometer rollbacks and title fraud.
Wisconsin is one of the few states that offers wholesale dealer licenses to business owners. A Wisconsin wholesale dealer license allows businesses only to sell vehicles from dealer to dealer. A wholesaler may not sell vehicles to the public. However, in recent years, Wisconsin has seen a dramatic increase in the number of wholesale dealer licenses and consumer complaints.

The Wisconsin DMV’s Dealer and Agent Section has uncovered a growing number of fraud instances against consumers from an influx of out-of-state businesses licensed as wholesale dealers in Wisconsin. Behind this growing fraud problem are thousands of wholesale dealers in Centralized Dealer Operations. CDOs are large facilities that may house several hundred licensed wholesale dealers at one time within a shared space. These facilities are often empty and only used as a business front. In the last two months, 32 wholesale dealer licenses were revoked due to failure to maintain business facilities.

Other revocations were due to unlicensed retail sales to consumers with false title statements and odometer rollbacks, two of the wholesale dealers rolled back more than 6 million miles over 64 vehicles. A wholesale dealer in Walworth County had its license revoked after state officials reportedly found them violating this state law.

Good Fellas Auto Sales, Inc. had its wholesale dealer license revoked by the state of Wisconsin. The dealer reportedly failed to properly follow administrative requirements. The dealer sold motor vehicles directly to consumers, rolled back odometers on vehicles, and falsified title documents. Fast Automotive, LLC and M X Auto Sales, LLC both with the same address also had their license revoked for the same offenses.

To report a complaint online, visit wisconsindmv.gov/dealercomplaint.