Delaware Motorcycle Dealers Under Investigation for Plating and Titling Issues

State regulators and the Delaware Department of Justice are currently investigating two motorcycle dealers in Delaware due to numerous complaints regarding plating, titling, and vehicle registration practices. Indian Motorcycle of Wilmington and Indian Motorcycle of Seaford have received multiple customer complaints, with 13 complaints also lodged with the state DOJ.

Both dealerships are owned by the same individual. In the United States, federal motor vehicle laws prohibit manufacturers from selling vehicles directly to consumers. As a result, there is a complex network of state and local laws governing independent motor vehicle dealers, including powersports dealers. The experiences at different dealerships can vary significantly, as reported by the Delaware News Journal.

The complaints range from allegations of failure to provide license plates, title, and registration for a used vehicle sold in December 2022, to issuing multiple temporary tags for the same vehicle, which is not authorized by the Delaware Department of Motor Vehicles.

In some cases, customers discovered that the temporary tags they believed were legitimate had not been properly filed with the state by the dealership. This meant that customers were unknowingly driving without proper documentation.

One customer claimed that their license was suspended because the dealership failed to turn in the tags for a bike they had traded in. The customer had traded in a bike with Maryland plates and was told that the dealership would facilitate the return of those plates in exchange for Delaware plates for the new bike they purchased.

The Delaware DOJ and DMV have confirmed that they are actively investigating the complaints. The DMV stated that it is investigating numerous complaints but did not provide an exact number. The owner of both dealerships denied the charges and stated that their attorney would respond, although no response has been received as of publication time.

Another complaint filed with the Better Business Bureau in March 2023 stated that a customer purchased a new Indian Scout Sixty in full and received a 60-day temporary tag. They were told that they would receive the title in the mail within a month. However, when the title did not arrive, the customer contacted the dealership weekly to resolve the issue, as they cannot register the vehicle without the title.

As of September 11, 2023, this complaint remains unanswered on the Delaware BBB site. Two other complaints filed by customers before and after this time have received responses from the business. Currently, there are more unanswered complaints than answered ones on the BBB pages of both dealerships.

This serves as a reminder that when doing business with a dealer, it is important to research and ensure that other customers are satisfied with the service they have received. While a few complaints may not be cause for concern, repeated issues raised in complaints should prompt customers to consider alternative options for their peace of mind.