Toyota Credit Drops the Hammer on Dealer GroupMore and more car companies seem to be cleaning house, and Toyota Motor Credit Corporation is the latest to do so. According to a report from Automotive News, the captive lender has filed a lawsuit against a Connecticut dealership group, alleging millions in financial exposure tied to questionable inventory practices. At the center of the case is Stephen CadillacGMC in Bristol, which also operates a Toyota franchise under the same ownership umbrella.According to the complaint, a routine floorplan audit conducted on March 27 uncovered a major discrepancy. Sixteen vehicles valued at over $1.4 million were unaccounted for, triggering immediate concern from the lender. Floorplan financing is a lifeline for dealerships, allowing them to stock inventory while the lender retains a lien. When vehicles disappear without repayment, it is considered an “out-of-trust” sale, one of the most serious breaches in dealer financing.
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Author: Leroy Marion
