ClassicCar.com

Two quick points on why the BBB is a good first step. One, it provides a warning flag for other people considering doing business with a company, that is if you do your homework. Second, the State and Feds what to make sure you have tried to reasonable solve the problem before involving them. You get quicker action from State government if you have exhausted this step first.

Any auction house should be paying you on delivery of the vehicle. If you sign any other type of delivery contract without on-the-spot payment you are asking for trouble.

In order to be balanced here in our discussions, here is a link to the Kruse sellers contract. SELLER CONTRACT It is typical of the larger auction contracts.

With that said, no offense to those that sold their vehicles under this contract, but I would never agree to these terms. This contract gives Kruse full power of ownership over the signers vehicle without any form of payment schedule. No owner rights are defined for the seller. As long as Kruse is carrying outstanding costs on an auction, they don't have to pay until all those cost are paid first.

I doubt this is a valid agreement in all 50 States and sellers may have some recourse under their States laws. This is a great example of "Buyer Beware". Contracts should always be reviewed by an Attorney.

It seems to me to be a personal choice on how much risk you are willing to accept. We regret the misfortune some have experienced with Kruse and we do hope you get paid-off soon.

'Where's our money?' sellers of vintage cars ask auctioneer
By Brian J. Pedersen
Arizona Daily Star
Tucson, Arizona | Published: 05.09.2009

A desire to pay off his home prompted Kevin Pierce to part with one of his prized possessions earlier this year.

But 10 weeks after selling the yellow 1969 Plymouth Road Runner at a local classic-car auction, Pierce has yet to receive the $17,500 he says he's due.

"They've been telling me the check's coming at the end of the week for a month now," Pierce said of Kruse International, the auction house that ran the Greater Tucson Collector Car Auction. "I've been getting nothing but the runaround. They've frankly just been lying to us."

Pierce, apparently, isn't the only person waiting for money.
Michael Moga, a local car enthusiast who organized the Feb. 27-28 event at the Tucson Convention Center, said he's heard of only a "handful" of people who have been paid.

Moga said Kruse officials he spoke with earlier this week indicated the company will have completed all of the Tucson-based sales by the end of May, when a four-day auction in Auburn, Ind., is completed.

"In the past they'd been known as slow-paying, but nowhere to this extent," Moga said of Kruse. "I think the economy has caught up with them."

There could be a variety of issues keeping a seller from being paid yet, Kruse Vice President Fred Gittins said.

"We pay 85 percent of our customers at the sale," Gittins said. "We only don't pay if there's a question."

Problems with a buyer's finances, a question about the vehicle's title or issues with how the vehicle's value was determined could lead to delays or to the sale's cancellation, Gittins said.

Pierce, though, said at no time has he been given an indication that there was a problem with his sale. He said he confirmed with the dealer in New Mexico who bought his Plymouth that he'd paid for and received the car.
Pierce said a bill of sale and a consignment order he got from the auction said he was to be paid within 30 days of the auction.

"We're about 70 days out now," he said. "I know of at least two other people here who didn't get paid. I suspect, if we start looking around, we'll find a bunch of people."

Gittins was unable to disclose figures for the number of cars sold in Tucson in February, or the number of people who have paid for their cars or been paid for the cars they've sold.

Pierce said he was told by Tucson police and his insurance company that because he had turned over his keys and the car's title at the time of the auction, the Plymouth isn't considered stolen.

That leaves only taking legal action against Kruse, which Pierce said he and other yet-to-be-paid sellers whom he's spoken to are considering.

"It's looking like a bunch of us might get together, try to track down all the people in Tucson who haven't been paid, and all get behind one lawyer," Pierce said.

Moga said he expects all who sold cars at the Greater Tucson Collector Car Auction to be paid soon. Regardless of when they get their money, though, he knows an impression has been made by Kruse's monetary tardiness.

"My whole goal was to bring a good auction to Southern Arizona, to have our own venue so people didn't have to go to Phoenix or Scottsdale," Moga said. "I initially wanted to plan another one for next year on my own. However, in lieu of what Kruse has done . . . how can I?"

Kruse International auctions about 13,000 cars in more than 30 events and dozens of real estate properties each year. In addition to collector cars, the company has auctioned distinctive real estate, vintage aircraft, collectible tractors, other collectibles, mobile homes, rare oil paintings, factories, islands, zoos and railroads.

"I was confident I was dealing with a reputable outfit," Pierce said. "Now I don't know if I'd ever want to do something like this again. It left a horrible taste in my mouth."

Contact reporter Brian J. Pedersen at 573-4224 or bjp@azstarnet.com.

Thanks for the posts Ted.

I agree that one needs to really read and understand what they are getting into before consigning.

I feel bad for the people that are getting it put to them with all this and it doesn't matter what the economy is like. When my car sells I wouold want my money "NOW" also.

Ron

This is pretty damn bizarre! You know full well that Kruse (or any other auction house!) is not going to let a vehicle go unless they've been paid for it. They insist on one of the following methods of payment - Cash, cashier's check with a bank guarantee letter that the funds are good, or a credit card. All of these methods ensure Kruse is paid with good funds right now, so they have exactly zero excuses for not paying up at the end of the auction! It sounds like they are using the proceeds from one auction to pay the people from the previous auction, ensuring a cycle of delays and obfuscation. Plus, they have the keys and paperwork, so the seller can not say their car is stolen, even though in effect, it IS, by Kruse.

I'll stick to selling the old-fashioned way - face-to-face with the buyer, in CASH.

__________________
No more Hudsons for the time, just parts!

I agree with you....why would a seller give up 12% off the take and risk so much? 100% Cash down, no payments, no interest, immediate delivery....you can't beat that!!!!!

Beware!!!!! Kruse International on the loose this weekend.

Kruse International will be hosting the 2nd Annual Greater Charleston, South Carolina Collector Car Auction, held at the brand new 80,000 sq. ft. North Charleston Convention Center.

We are still waiting for our check from Kruse's Boca Raton Auction the first week of January. They never return phone calls and have terrible business ethics. I cannot understand how they have done so well. I would never recommend them to my friends. Hmmmm. Nope, not even my enemies.

BBB is a waste of time. They have no legal authority at all. Attorney general is just about as useless. They are understaffed and over worked government employees. They will send out letters telling them to do the right thing but chances are they will do nothing unless hundreds of people file similar complaints.

BBB only matters to people that take the time to research a business before dealing with them.

Stop wasting time and hire a lawyer before you never receive a dime. If they file bankruptcy nobody will get a penny. Lots of companies are doing the same thing lately. Just taking as much as they can get away with because chances are you don't have the money to make them pay you.

This is Kevin Pierce. I was the subject of the Tucson newspaper article posted earlier in this thread.

I just found this thread through a google search and wanted to let let everyone know that as far as I know no one here in Tucson has been paid for cars sold in the February 2009 auction.

Visit moparts.com and search for Kruse to view a large thread on this topic (about 9000 views).

A group of unpaid sellers will be proceeding with legal action if we are not paid in early June. Kruse swears we will all be paid then, after their big spring auction (5/28- 5/31)

If you have ay experience or insight with Kruse please contact me personally at: ramrod39@earthlink.net