Kruse Auctions Trouble?

[Tom Kirkham]

In my 10 Aug 09 issue of AutoWeek on page 12 there is an article titled:
Kruse Off Course?
Auction house hits financial shoal, fails to pay sellers.

There is also a thread at:
http://www.classiccar.com/forums/showthread.php?t=17605

[RedBarchetta]

Sounds like they are short on capital. If they have to wait for their next auction to resolve their debts from the prior one, that is not good. Maybe Mr. Ponsi sold Mr. Kruse a replica and Ponsi passed it off as a real one.

[Cobrabill]

Tom,there were lawsuits here in Tucson over Kruse.Consigners weren't getting paid-even months later.They kept saying "you'll get paid shortly-we have another auction( i forget the town)coming up".

[HI Cobra]

Sounds like what happened the first time they were in Hawaii. Last year they
didn't sell many so I doubt if they will return.

[jayscobras]

Dean Kr....ass.... is the worst person I have ever dealt with. He flaunts his religion at every sale but will screw you any time he can. I have requested information on a car that he consigned at the Tulsa auction for over three years ago. Buyer beware! Not all of their auctions but any car he has in them but nobody knows.

I don't normally react like this but this is an individual that owns a company that needs to be avoided,,,jmho

I don't normally rant, but he is a crook and a liar. I am not surprised that he is not paying off. It can only get worse.

Jay Nordstrom

[Ron61]

I have read and heard rumors about the Scottsdale Auction for several years now, but have never seen any actual proof they were true. That may explain why some of the other Auction places are starting to get the high dollar cars that they never used to be able to get. Also I think that when Kruse quit letting the seller put a reserve on the cars that didn't help.

Ron

[jagrolet]

A few years ago two people were buying up all the hemi cudas that could be had,for prices at the time,that seemed large(10-20 grand) ,i even read a trade paper about it. Months later a hemi car shows up at auction and is bid up to 50 grand,to alls astonishments. Later,another at another auction to 75 and so on.Geuss who is sitting on 30 cars.
It is not illegal to have"associates" bid on cars,then run them thru again and again till tail end charlie takes the bite in the ass. It is a license to print money. Generally,every popular make of car has been exsploited,and this kind of stuff is what made thi great hobby a vilebusiness.

Today,more 67 427 corvettes are on the road than GM ever made,and all are correct. I have been in the corvette trade almost 40 years,and have seen these cars years ago untouched,taken them apart to repair and reassembled them,you would not believe the amount of information in todays assembly manuals,and data books that is either incorrect or not at all included. As to my notes on big block cars,and memory 8 out of 10 are incorrect or clones.Heck one large dealer advertises for 427 blocks and exhaust manifolds,and has so for years,in fact at one time ,a tile and speedo problem was prosecuted by the resident state,around 25 years ago.
Anyhow,good for these people,do not buy or sell to them,or any other leaches to the automotive hobbys

[Cobrabill]

NBC TV-12 Phoenix
Call 12 for Action
Kruse Auction
Reneges on Promise
By Dave Cherry
Call 12 for Action
7-23-09

This morning, Call 12 for Action has an update on a story we brought you last month about an Indiana auction company called Kruse International.

For years, Kruse International has brought its auctions here to Phoenix. After a classic car auction the company did this January, a viewer contacted us saying Kruse sold his car but didn't pay him. After we got involved Kruse promised they would pay-- but they didn't.

We're now concerned more Phoenix classic car buffs could be in harm's way, so action is needed. First, here’s what happened to our viewer.

"I want my car back."

Bob Sibilla is steaming mad at the Auburn Indiana based auction company called Kruse International. Bob says he consigned one of his classic cars with Kruse International for an Arizona-based auction back in January.

"It was a 1950 Chevy and they call it a "Gasser", because it was an old drag-race car."

The car sold for $7,000. Bob was perfectly clear on when he'd get his money from Kruse. "It would be in 30 days, according to the contract. When you go in there you sign all kinds of papers, you have to prove to them that you have clean title on the car."

30 days came and went and Bob did not get his money. He knew Kruse to be a well-known and established player in the auction field, so he was surprised at how they explained the delay.

"We have up to 90 days. I said where's that in the contract? They said it's an unwritten rule with dealers. He said, there could be trouble with the title, I said there's no trouble with the title, I just titled that car here, it's a clean title, there are no liens on it, no nothing."

Now several months have come and gone. Bob says he hasn't heard from Kruse. "If I really needed that money, I'd be in big trouble. Say I needed it for a house payment."

When you consign a car to any auction company, trust is involved. Bob feels he misplaced his trust in Kruse International and he's concerned others could lose a car just like he did. "I would say don't even put your car in any auction at this time, because you don't know what's going to happen."

We'd have to agree with Bob when it comes to Kruse International Auctions. Bob and I have talked to the Vice-President of Kruse several times, he's promised us both that Kruse would make things right and pay Bob and each time the company's failed to honor its promise. Bob has no car and he has no money.

The Arizona Department of Motor Vehicles has issued a "Cease and Desist" order against Kruse International. The company is no longer permitted to conduct auctions here because their license requires them to maintain a physical office in Arizona. The MVD says Kruse's Arizona office location is now closed.

How can you help? If Kruse re-opens an office in Arizona, and re-applies for a license, the Motor Vehicle Division says it would have no basis for denying that license. The only way the MVD could deny Kruse a new license is if it receives complaints from consumers who've had similar experiences as Bob.

NBC TV-12 News Sponsors Call 12 For Action.

Call (602) 260-1212 to report a complaint. Call 12 for Action volunteers are standing by Monday - Friday from 11 a.m. - 1 p.m. to take your call. You can also use our online complaint form.

[Anthony]

And the Winner is .................

As Always.....................

The .........................







LAWYERS !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[Cashburn]

Originally Posted by Ron61

I have read and heard rumors about the Scottsdale Auction for several years now, but have never seen any actual proof they were true. That may explain why some of the other Auction places are starting to get the high dollar cars that they never used to be able to get. Also I think that when Kruse quit letting the seller put a reserve on the cars that didn't help.

Ron

I believe you are confusing Kruse with Barrett Jackson. Kruse has reserves on their auctions and they do not have an event in Scottsdale.

[vettestr]

The Kruse has held an auction here in the Phoenix valley for several years, late January in most cases. This year it was held on January 22-25th. I hate to see this happen to the industry and of course to the people. http://www.kruseinternational.com/re....asp?YEAR=1997

[kayakjack]

With this news I do not understand how they could hold any more auctions. Who would give them a car to auction when there is a good chance they will end up with their car gone and no money?

Would anyone here auction a car with them?

Jack

[Ron61]

Cashburn,

My bad. Thanks for pointing that out. There has been a rumor around here the past couple of years about some underhanded stuff Barrett Jackson pulled but no actual confirmation and I just got the two confused.

Ron

[Cashburn]

No problem. Just want to keep it focused on Kruse. The B-J rumors have been circulating as well, but nothing has really stuck. In general I hear the Mecum guys are a pleasure to deal with.

[Cashburn]

Just an update. Kruse had their auction license pulled by the Indiana Auctioning Committee. Due to complaints. Deets at: http://www.journalgazette.net/articl...14/1067/NEWS07