A major player in the used car industry abruptly shut its doors after filing for bankruptcy Thursday.
Former Off Lease Only employees said they were let go Wednesday with little warning.
Off Lease Only had five locations in Florida, including in Opa-locka and one in North Lauderdale. On Thursday afternoon, the gate was locked, and the parking lot was nearly empty. Only a few people were spotted picking up some of the leftover vehicles as the company works to wind down its business.
In a news release issued Thursday, Off Lease Only announced it has voluntarily filed for Chapter 11 bankruptcy.
"The industry has been impacted by inventory scarcity, and vehicle price inflation stemming from supply chain disruptions and multi-year declines in new vehicle production," the news release stated.
The company also blamed higher prices and skyrocketing interest rates for the lack of affordability that made it difficult for consumers to purchase used cars.
According to Consumer Reports, worldwide supply chains were plagued by a microchip shortage and other disruptions after the pandemic. Some believe Off Lease Only’s closure could speak to a wider problem for the used car industry.
Just this year, Off Lease Only expanded into Texas, touting itself as one of the largest car dealership stores in the Houston area.
NBC6 spoke with a couple of former employees off camera who said they were let go Wednesday. One of them said they did get a severance.
One man who didn't want to be identified said he's worked at Off Lease Only in Opa-locka for the past five years. He said employees learned about the news during a mandatory Zoom meeting Wednesday.
"They announced they will immediately close down to the public and seize all operations, so after that everyone knew they lost their job, we packed up everything and got going,” he said. "It was a bulletproof company, but we found out yesterday it wasn't."
It wasn't just employees who were caught off guard. The dealership closures came as a surprise to many, including customers who voiced their concerns on the company’s Instagram page.
A sign on the dealership’s front door showed the same message as its website that it’s closed to the public and they apologize for any inconvenience.
Andres Ortega said he bought a car from Off Lease Only on Monday and was supposed to get it the next day. The sales rep sent him a text Wednesday telling him the company filed for bankruptcy and he didn't have any information about his car.
“I'm calling them, I tried to talk with sales, customer service, no one is answering their phone,” Ortega said. "I don't know where my car is. That sucks, I need a car.”
The sudden shutdown has left many people with more questions than answers.
"If a major company like Off Lease closes, it kind of makes you think who's next,” the former employee said. "The car industry is pretty much in shambles right now, this actually might be the beginning of the end for a lot of major car dealerships."
NBC6 reached out to the public relations company assisting Off Lease Only to ask what recourse customers have if they purchased a warranty for example or if their temporary tag is about to expire. Someone got back to us and said they’re working to get that information. In the meantime, the company told customers they could email customerinquiries@offleaseonly.com if they have any questions.
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Used car dealership group Off Lease Only files for bankruptcy, lets go of its employees - NBC 6 South Florida
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