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OUT OF TRUST 1) Out of Trust refers to the illegal sale of a car (collateral) that has been paid for with a loan and then not using the sale proceeds to pay back the lender aka Conversion. 2) Out of Trust means the dealer does not have the money to operate the business due to cash flow problems, and is unable to pay for floor-plan financed vehicles. When a dealership gets out of trust that causes a domino effect that can crush everyone caught in the food chain — other dealers, creditors and customers. 3) Out of Trust also has a broader meaning in which a party to a contract or agreement disobeys (breaches) the terms of the contract or agreement.
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