Huge Lexus Dealer Failed To Re-title My Trade-in, I Ended Up With A Suspended License And Nearly Arrested. Now They’re Holding My Settlement Until I Sign A Gag Order

Location: Tampa, Florida, USA

Hello Reddit!

I'd like to note I’ve given this dealership/franchise until Friday at 5PM EST to provide a clean settlement without a gag order in order to settle the sitaution. If they don't, I will provide their name, and will be going to the DMV Bureau of Dealer Services on Monday. Will update you all then.

Back in August of 2024, I traded in a vehicle to one of the largest dealership networks (hundreds of locations within the USA). The transaction and dealership experience themselves were ok- nothing notable other than the usual uncomfortable negotiations and less-than-you-wanted trade-in value, but overall it seemed like a normal experience at a dealership.

A few weeks after my trade-in, I noticed the vehicle I had traded in was still showing under my name as everytime I opened my banking app, it still showed an open balance and an installment behind. I reached out and texted the dealership to warn them, and they essentialy told me to not worry about it, so I moved on.

Fast forward to earlier this year, I’m driving to Home Depot/Lowes to work on my home office setup in anticipation of a weekend project/new business venture with a friend, and I notice a sheriff following me (I wasn’t speeding or swerving). After about a minute or two, he turns on his lights and I pull over.

The deputy was very polite, we talked and cracked a few jokes, and then he went back to his car, came back and dropped the news:

I had absolutely no idea who/why/when/how. I provided him documentation of my car insurance, my car's title, and having no idea why my license was suspended. He made it extremely clear that in this situation he should be arresting me and impounding my car.

He ended up letting me go, but:

he was clearly VERY hesitant about it

mentioned MULTIPLE times how serious this situation is

Kindly escorted me halfway home (off a main road) to make sure I don't get stopped again.

For context, I have an entirely clean driving record, which he said played a big role in his decision, as well as the fact that when he asked if anybody can get my car, I let him know that the only person who could is my wife, but she is with our 8 month old baby at home, and our child's seat was in my vehicle (which he could see in plain sight, as he aimed his flashlight to it).

Since then, I’ve basically spent the last two months acting as my own investigator and dealing with this dealership. I contacted my local DMV, pulled my own records, figured out exactly what happened, and have sent a dozen emails to the general store manager of the dealership.

The cause? I traced it back to the dealership never properly transferring the title out of my name for the vehicle i traded in

Now to list my damages:

• I lost an entire weekend of work (I’m self-employed -got pulled over Friday going into VERY busy planned work weekend)
• Time spent dealing with DMV and documentation
• Out-of-pocket costs (later reimbursed - there was an expensive fee to be paid to the DMV to get my license back)
• And honestly, a weird/odd stress that has lingered about since this date when driving after almost getting arrested over something I didn’t do and knew nothing of. Call it trauma or whathaveyou, but I try to avoid these terms.

After about two months of back-and-forth communication with the dealership, I was offered $1,000 for my trouble. It was less than my actual losses, but I was willing to accept it just to move on. HOWEVER, once our amount was agreed to, the paperwork sent over was labeled as a goodwill agreement that included an overreaching and incredibly broad non-disparagement/full confidentiality clause - essentially restricting what I could say about my experience with the dealership with anybody, including family and friends.

I let the GM know that I would sign a standard liability release stating that I will not sue them over this, but I will not sign away my right to speech - for me, even though I had no intention of posting a review or this reddit post about the situation, it was a matter of principle.

They refused to remove that clause.

Where we're at now:

I’ve escalated this situation by CC'ing the franchise's corporate email and their business ethics office, withdrawn my $1,000 agreement to settle, and then asked for my original reuqest of $1,500 without any speech clauses/non disparagement.

As of right now, if this is not resolved, my plan is to:

• File a hefty complaint with the FLHSMV, where it will not be a question of whether or not the dealership acted in bad faith, but what their consequences will be
• Likely going through with a small claims lawsuit - as I've spoken to a friend who is an attorney, and they let me know that strictly dependent upon how this players out, it could be taken much further, but recommends small claims as a simple initial route.

Does anybody have any recommendations on what other actions I may be able to take that I have not come across in order to hold them accountable?

TL;DR: Dealership failed to transfer title on a trade-in vehicle, leading to a license suspension and a near-arrest while I was conducting business. Dealership's GM offered $1k but only if I sign a gag order. I've escalated to Corporate and am prepared to go to the FLHSMV and Small Claims if they don't drop the gag order by Friday.