Dealers say they've sold cars to Easleys

Vehicles being driven by former governor's wife and son were first owned by dealers, then re-sold.

Friday, Apr. 03, 2009

Former Gov. Mike Easley and his wife, Mary, have apparently bought two vehicles that the family has been driving but did not previously own.

Separate auto dealers say they have sold the Easleys the vehicles – a $30,000 Honda Accord and a 2000 GMC Yukon that Mary Easley and Mike Easley Jr. had been driving. Both were included in a story published Sunday. Division of Motor Vehicle records do not yet show the Easleys as owners of those cars. But DMV allows 10 days for submitting title work on cars purchased without borrowing and 20 days for transactions in which borrowing takes place.

Generally, title work is filed at the same time as a purchase or within a few days, according to Joey Gardner, assistant director in the DMV's license and theft bureau.

The News & Observer's report showed that Mary Easley was driving the Accord for at least the past six weeks, mostly commuting from her home to her job at N.C. State University.

Hendrick Honda of Charlotte had bought the car from itself in the final week of the Easley administration, paying a sticker price plus fees and taxes that totaled $30,557, records show. The car was bought by Hendrick Honda on Jan. 7. Easley left office Jan. 10.

The report also disclosed that the former governor, a Democrat, took a vacation to a small island off Key West, Fla., in March 2008 and that the trip was paid for by Rick Hendrick. Under state ethics rules, Easley generally could not accept such gifts as governor. One exception: Gifts based on personal ties which did not appear to be related to lobbying. Easley and Hendrick said Hendrick did not lobby Easley.

In a letter to The (Raleigh) News & Observer on Wednesday, Hendrick described Easley as a friend of 20 years whom he invited to go fishing in Florida.

Hendrick Automotive owns 30 dealerships in North Carolina and dozens more across the nation. Hendrick Motorsports sponsors four NASCAR race teams, and Hendrick is involved in a trade association that has secured racing-friendly legislation.

In the letter sent to The News & Observer on Wednesday, Hendrick criticized the Sunday report as full of innuendo. In the letter, Hendrick repeated some responses that were included in the Sunday report. Among them: He said he didn't discuss legislation with Easley and he said his role in the trade association was ceremonial.

In the letter, Hendrick said the Easleys have purchased the Honda Accord, something he says he previously disclosed to The News & Observer. The newspaper has no record of such a disclosure.

Prior to publication, neither Hendrick nor the Easleys would agree to interviews. They submitted written responses to questions about the car arrangement.

Of the Accord, the Easleys had said only that it was a “loaner” Mary Easley was using until “her car comes in.” Hendrick said prior to publication that “Mary has test driven three vehicles, and she is purchasing one.”

In the letter, Hendrick said the newspaper's account of the Accord “was blown way out of proportion and downplayed the significant detail that the Easleys did purchase the vehicle.”

Last week, the Easleys and Hendrick declined to provide documents that would have shown the Easleys had purchased the car.

Hendrick said the Easleys have purchased another vehicle as well but did not provide details.

Still, this means Hendrick's dealership purchased the Accord from itself in January and now has re-sold it to a customer. Dealers typically don't do that, according to DMV officials. Usually, dealers keep cars as inventory, avoiding outright purchases because such transactions trigger taxes and fees normally passed on to customers.

In January, for example, Hendrick paid $931 in taxes and fees on the Accord and would have received a property tax bill on it by May.

State law allows dealers to assign a car to a customer as a test-drive vehicle. In those cases, the car gets a “dealer” tag and is driven on a permit good for up to 96 hours. The test-drive permit can be renewed.

The News & Observer report also showed that Mike Easley Jr. had been driving a 2000 Yukon owned by the Bleecker Olds Buick GMC dealership in Red Springs, which is near Fayetteville. Like the Hendrick Accord, the Yukon was purchased by the dealer from itself, this one in 2003. The Bleecker dealership paid $16,935 for it, insured it and was paying the property tax bills.

The former governor had said the Yukon had been part of a lease and that he had purchased it, but the records did not show that. The dealership is owned by Robert F. Bleecker. He said this week that Easley had purchased the car, but he was unsure of whether the paperwork had been processed.

“But they have bought it,” he said.

Asked why Easley had thought it was part of a lease, Bleecker said he couldn't explain it.

“I could probably give you a real good answer, but instead of me sitting here trying to verbally do it all, I don't know how to do it,” he said. “I really don't.”

On Tuesday, he asked for time to get some answers. He has not returned several subsequent phone messages or two e-mail messages.

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