Fenty Administration Shuts Down 23 More Illegal Used Car Dealerships

Just two weeks after the Fenty Administration shut down three illegal used car dealerships in Northeast, Mayor Adrian M. Fenty today announced plans to immediately shutter an additional 23 used car dealerships, terminate the licenses of 303 individual salesmen and launch a full-scale investigation into the transportation of used vehicles in and out of the District.

Fenty, joined by Acting Attorney General Peter J. Nickles and Department of Consumer and Regulatory Affairs (DCRA) Director Linda K. Argo, announced the closures following the two-week citywide sweep of more than 100 dealerships along four major District commercial corridors.

Witness accounts, documents and other evidence obtained during the sweep show many vehicles stored in used car lots across the city were never intended to be sold in the District.  

“The neighborhoods and commercial corridors of the District will no longer be dumping grounds for dangerous vehicles that, according to our findings, were never intended to be sold in the District,” Mayor Fenty said. “Our team will remain vigilant in cleaning up these blights on our community and ensure the mess left by these dubious dealers is cleaned up.”

In addition to the 23 dealerships expected to be closed over the next two weeks, 17 more will be subject to further investigation and may be closed as well for:
•     license violations
•     storage of dangerous vehicles
•     building code violations and other various infractions.

Acting Attorney General Nickles said it appears many of the vehicles uncovered were purchased at out-of-state dealer-only auctions and were only to be stored in the District before being shipped to other locations along the East Coast or internationally.

“The word on the street is the District is an easy place to get a used car dealers’ license and easy to store your vehicles illegally before shipping them overseas,” Nickles said. “Let me be clear that we are no longer going to be a parking lot for these dealers. Business is closed!”

DCRA Director Argo said the city has begun working to strengthen the licensing requirements to ensure consumers, residents and neighborhoods of the District are protected.

“Some of these licensed dealers may have never sold a single vehicle in the District,” Argo said. “Out of more than 100 used car dealerships we looked at, just one was found to be in full compliance with the law. As a result, we will clear out these fraudulent dealers as quickly as possible.”

Investigators from DCRA and ten other District agencies surveyed 106 dealerships during the two-week sweep. The results include:

•    51 businesses no longer in operation
•    68 abandoned vehicles were towed
•    49 violations issued for dangerous vehicles
•    49 dangerous vehicles towed
•    5 business license violations
•    $22,500 in fines issued
•    Single lots with as many as 11 licensed dealerships
•    Numerous dangerous building conditions

Fenty made the announcement outside of CitiMotors, located at 1050 Bladensburg Road, NE, which was immediately closed for operating an illegal storage site rather than a bona fide retail business. The two dozen vehicles stored at the site are to be towed today.

Fenty said city officials will continue their sweep of the remaining 100 dealerships.