Car repossession...?

Question

I bought a car from a car dealership and after not receiving the registration and having the temp one expire, I went to the dealership to see what was up and they went out of business. So I went to the DMV to see what was up and the car was never even registered. The dealership didn't even have the title to the car. The dealership owner had deals with banks that he would put the cars that were to be auctioned off on his lot and try to sell them. And once he sold them he was to pay the banks whatever money was owed on the car. Come to find out, he never paid any of the money he owed on them. He is nowhere to be found and his own family doesnt know where he is. About 20 people are having the same problem as myself, and a few of them had their cars repossessed by the bank that the money was owed to. The only thing I have is a xerox of the title that was faxed to my bank to take out the loan. I called the bank that originally owned the car to see if any money was owed to make sure they don

Answer 1

I would get my lawyer involved. i really wouldnt know what to do but i would get him or her involved. Its a shame when this happens. thank god my dad isnt gona go out of bussiness. Knock on wood.

Answer 2

Boy, this is a trick one. Your best bet would be to talk to a lawyer. Common sense would indicate that since you never received full ownership of the car the contract you signed for it is invalid. The car should go back to the dealer's bank and your bank should have to go after the dealer for theft. The flip side is the dealer's bank should leave ownership of the car with you and they should go after the dealer that broke his contract with them.

Answer 3

always get the title

Answer 4

You need to honor the terms of the car loan you agreed to, or it'll hurt your credit.  But you don't have to pay any car loans that your name's not on!

Trouble is, the dealer sold you a car that was not his to sell.  I'm sorry, that's not your car.  The proper owner WILL take the car back, and if you resist that you will be guilty of worse than merely evading repo, because in the eyes of the law it's not your car.  

I heard about someone who bought a classic car in AZ and registered it in CA.  Turns out it was reported stolen 40 years ago.  The car was taken and returned to the original owner.  The buyer was out $25,000, but could sue the seller.

So yeah you're between a rock and a hard one.  Get a lawyer fast, and you'll have to work out if you can just exit the loan and just give up the car and get yourself a car that isn't tainted, or work something out between your bank and the legitimate owner.  At best you can sue the crooked dealer for 3x the cost of the car due to it being fraud, but collecting is another thing entirely.

Answer 5

You need to keep in contact with the DMV and the Dealer Out of Business dept. They will assist you with the title/registration issues, and can guide you through the process with the Attorney General. The AG will be working with the other 20 people and yourself together to make their case against the dealer and to try to recover funds, etc. You don't make it clear who you were/are making loan payments to, but whoever the lender is, they should be able to work with you in conjunction with the AG and the DMV/Dealers, so that your car is not taken/repo'd. If repo were an option, you would be given ample opportunity by the lender to work something out. Considering the complexities of your case, you really need to remain open with the lender about your desire to pay for your purchase, and not lose your car because of a dealer gone bad. The lender doesn't want to lose out either, so they should work with you. Good luck!