Kruse Auto Auctions
Rodney Ross is fed up with waiting to be paid by Dean Kruse for his Lincoln Limosine that was sold at the Labor Day Weekend Sale in Auburn Indiana.
In an attempt to draw attention to the plight of unpaid sellers, Ross decided to create a website (http://www.kruseauctionripoff.com) to publicize the stories of sellers and their experiences with Kruse Auctions International.
Rodney Ross’ beautiful Lincoln Limo that was sold at Kruse International’s Labor Day Weekend Classic Car Auction in Indiana. (Photo: Rodney Ross / Fort Worth, TX)
“Our goal is to give people a place to tell their stories and to be a clearinghouse for information that sellers need to know,” said Ross, a Fort Worth car collector.
The site contains links to recent news stories about Kruse Auctions and Dean Kruse
Read the full press release about the new website, KruseAuctionRipoff.com
It's true, Dean Kruse says, that dozens of people who sold cars through Kruse International haven't been paid yet. But Kruse, the owner and chief executive officer of Kruse International, said he expects he'll be able to make good on those debts after the Auburn auction that begins next week.
The problem, said Kruse, is he can't pay everyone he owes because those who owe him aren't paying.
“My receivables (money owed to the business) are usually $200,000 to $400,000,” he said. “Now they're $6.5 million.”
Kruse said his classic-car auction company, based in Auburn, has 66 sellers to whom its payments are overdue, “about 30 days late. Some are 60 days late.” One Florida seller who contacted The News-Sentinel says he is owed $19,600 from a sale more than four months ago. Kruse pointed out that 66 sellers is a small fraction of the total number his company works with; he said it sells about 11,000 vehicles a year.
The News-Sentinel reported Wednesday that dozens of people have complained about not being paid after sales.
Kruse said the problems of the American auto business are hitting Kruse International, too, because many purchasers of collector cars are themselves automobile dealers. These are buyers Kruse has dealt with for years and whom he trusts to pay him, but he said their financial troubles have left many reneging on their promises to pay.
“I could sue them - I probably will sue some of the big ones - but then you spend $5,000 or $10,000 to sue a guy who doesn't have any money,” he said. Kruse said he's spent some personal funds on shoring up Kruse International's cash flow, and he expects to spend more.
Because Kruse has failed to respond to more than a dozen complaints from consumers, the Better Business Bureau of Northern Indiana gives its lowest rating - F - to the company.
Although the company's Web site and promotional materials still say 5,000 vehicles are expected at the Sept. 2-8 auction, only 1,487 lots were registered as of Wednesday afternoon, according to the same site.
Kruse said he's confident the high-value offerings in the sale will provide enough to pay off sellers, taking into account last-minute additions, cars that will be re-auctioned late in the sale after they fail to sell on their first passes, two art collections, collectibles and “thousands” of cars that owners pay to display to potential buyers at the sale.
“I really had a better year than Chrysler or General Motors, but that's not saying much,” Kruse said. “I'm here, and I'm staying here.”
