Recently, the Wisconsin Department of Transportation (WisDOT) Division of Motor Vehicles (DMV) revoked the wholesale dealer licenses of three Columbia County dealers after a DMV’s Dealer and Agent Section investigation determined that each dealer violated state law.

The dealers were determined guilty of rolling back odometers on vehicles sold to customers, falsifying title documents when selling vehicles to customers, and selling vehicles directly to retail customers.

The DNR notes that in recent years, Wisconsin has seen a dramatic increase in the number of wholesale dealer licenses issued and consumer complaints resulting in investigations into dealers.

Wisconsin Offers Wholesale Dealer Licenses To Business Owners

Wisconsin is one of the few states offering wholesale dealer licenses to business owners. A Wisconsin wholesale dealer license allows businesses to only sell vehicles from dealer to dealer. A wholesaler may not sell vehicles to the public.

Once a license is granted to a wholesale dealer, Wisconsin law requires them to carry a security bond to ensure if they commit illegal actions, such as rolling back an odometer or making an illegal sale, a consumer may file a claim against their bond to recoup money lost.

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Maintaining a bond is a standard business practice and an added security measure that is meant to protect consumers. Unfortunately, some dealers fail to follow that law, and the Wisconsin Department of Transportation is forced to take action.

WisDOT Division of Motor Vehicles Rovokes 5 Wholesale Dealer Licenses

The Wisconsin Department of Transportation announced they had revoked the wholesale dealer licenses from five dealers at four Elkhorn locations for violating state law when they failed to maintain a dealer bond.

The following dealers, located at 209 O’Connor Dr., Elkhorn, had their licenses revoked effective July 20, 2024:

  • KAC Auto Sales, LLC​
  • Sir Henno’s Auto, LLC

These Elkhorn dealers also had their licenses revoked:

  • Elektra Auto Sales, Inc., located at N5876 US Highway 12, was revoked effective July 20, 2024.
  • E and R Motion Group, LLC, located at 735 N. Wisconsin St., revoked effective July 20, 2024.
  • Blue Auto Sales, Inc., located at 613 E. Geneva St., revoked effective July 21, 2024.

Dealers are given 30 days to appeal, none of the dealers listed above filed an appeal so the decision to revoke is final.

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WisDOT’s Dealer and Agent Section licenses, regulates, and offers training to dealers. In addition, this special unit protects consumers by investigating complaints and resolving disputes about dealership sales and warranty repairs.

It also investigates complaints about odometer tampering and title fraud involving dealerships and private sellers in Wisconsin. Complaints can be made online by clicking the button above.

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