Car broker leaves dealers in lurch

2 paths to troubleLanelogic operated 2 programs that looked solid when the used-vehicle market was strong but led to problems when the sales got soft.Like a stock exchangeLanelogic’s used-car brokerage worked a bit like a stock exchange.• A dealership client tells lanelogic it wants to sell a used vehicle. Lanelogic appraises the vehicle and sets its price.• Lanelogic identifies a dealership that needs that car. Lanelogic picks up the car from the seller and ships it to the buyer. After the buyer receives the vehicle, he pays lanelogic for it.• Lanelogic hands over the money to the seller. The seller transfers the title to lanelogic, which gives it to the buyer. The buyer and seller both pay lanelogic a $200 fee.• If the vehicle does not sell after 45 days, lanelogic buys it back for the price the dealership paid, minus a depreciation fee ranging up to $600.Risk-free guarantee?Another program allowed dealers to lock in the wholesale price of any used vehicle on their lot, no matter where they had obtained it.• The dealership asks lanelogic to appraise a used car on its lot.• The dealership pays lanelogic an average fee of $400.• Lanelogic appraises the vehicle and offers to pay a specified price for it if the dealer can’t sell it within 45 days. For the managers of used-car lots, it looked like an offer that you couldn't refuse.

Car broker leaves dealers in lurch

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