As dealer Danny Sauro and his two Maryland stores fell further out of trust, Nissan Motor Acceptance Corp. relayed a persistent message: Pay up. When the company didn't, Nissan's captive sued it for $4.5 million in floorplan default.
NMAC's federal lawsuit illustrates the financial deterioration of Tischer Acura and Tischer Nissan in Laurel, Md. The company, Pensare, sold NMAC's collateral out of trust, violating the contract and financing terms, according to the Nov. 15 suit against Sauro and the company.
Sauro, who personally guaranteed floorplan and term loans — a $1 million capital loan made in 2016 for a five-year term — didn't reply to messages seeking comment.
Pensare intends to sell both dealerships and use at least $2,750,000 of the proceeds to pay down its default, which totaled nearly $4 million, as of a Jan. 2 consent order. Pensare agreed to pay an additional $450,000 by Feb. 15, the order said.