Wichita dealer sold used sports car with engine sludge, refused to refund customer

A Wichita used car dealer who sold a sports car with engine sludge and refused to pay for repairs or provide a refund has been ordered to pay a civil penalty.

Dallas Colgrove, owner of Kansas Auto Group, 921 S. Broadway, entered into a consent judgment in Sedgwick County District Court on Wednesday, District Attorney Marc Bennett said in a news release.

Colgrove admitted in court that his business sold two vehicles with pre-existing defects to two customers last summer, then refused to pay for repairs when the cars broke down. As part of his agreement with the district attorney’s office, he agreed to buy a new engine for one customer, pay restitution to the other and to pay court costs, investigative fees and a civil penalty.

Court documents show that in May, Colgrove sold a Wichita man a 2010 Chevrolet Camaro for $16,186. By June, the sports car wouldn’t start. It was towed to a local Chevy dealer, where mechanics determined the car needed a new engine.

A repair inspection determined the engine was “sludged up” and when the oil filter was checked, there was a “crushed can canister filled with sludge.” The Chevy dealership told the extended service warranty company that “this is one of the worse sludged up motors I’ve ever seen.”

The warranty company refused to cover the repairs, which were estimated at about $6,000, due to the condition of the engine and canceled the contract. Colgrove and Kansas Auto Group also refused to fix the car. The new owner of the car had driven it for fewer than 30 days and had only put 1,128 miles on the car. The customer then filed a complaint with the consumer protection division of the district attorney’s office.

Court documents show that in June, Kansas Auto Group salesman Eric Haskin-Ybarra sold a Wichita woman a 2015 Nissan Sentra for a little more than $12,414. She bought the car, even though she noticed the car made a noise, was “jerking,” had power steering issues and the air conditioning wasn’t working and had a strange smell.

Two days later, after having driven the car for only 178 miles, it broke down.

The woman pulled over because the car had overheated, and it was towed to a repair shop, which determined the engine had overheated and the fan motor was burned up. A cost estimate of nearly $3,800 included replacing the engine, water pump, oil filter, anti-freeze, spark plugs and other repairs.

The customer’s extended service warranty company refused to cover the claim, determining the problems were pre-existing conditions that should have been noticeable during a test drive. The dealership also refused to pay for repairs.

Colgrove admitted in the consent judgment that his company violated the Kansas Consumer Protection Act. He agreed to buy a used Chevrolet Camaro engine and to pay for it to be installed into the car. He also agree to pay $2,600 in restitution to the buyer of the Nissan Sentra.

Colgrove must also pay $10,000 in civil penalties, more than $676 in investigative fees and $197 in court costs.

The business has also implemented remedial measures, including improving inspections, creating detailed checklists that ensure consumers are fully informed on vehicle condition, a “renewed emphasis on customer service” and providing a complete Carfax report to buyers, according to court documents.

This story was originally published March 10, 2020 at 6:03 PM.