Who Owns your car?

Killer Red Taco · Mar 12, 2009

Saw this on the news last night, some good info.

Also California sucks!

http://www.cbs13.com/video/?id=49774@kovr.dayport.com

Here is a written version:

California Dealerships Shutting Down Without Paying Off Trade Ins

Reporting
Kurtis Ming SACRAMENTO (CBS13) ―

CBS
1 of 1
Our Investigation reveals thousands of Californians may not own the cars they're driving because dealerships aren't doing what they promised. Buyers who are making payments on their newly purchased cars are being told their vehicles could be reposessed at any time. People who traded in their cars are being told the dealership never paid off their loans, as promised.

When Jason Conant traded in his old truck for this one at Carmean Dodge in Shingle Springs last year, the dealership promised to pay off the $11,800.00 loan on his old truck. But nine months later his credit is ruined and he's getting calls from collections.

"Saying that the old loan hadn't been paid off and I was not making my payments," Jason was told.

It turns out Carmean Dodge shut down before paying off Jason's loan. He's now on the hook for both trucks. His bank wants $360.00 a month for a truck he doesn't even have anymore.

"I really feel mislead," Jason told CBS13. "I feel left out in the dark."

So where is Jason's old truck now? We found it, up for sale on a used car lot on Auburn Blvd. In Sacramento. How could that be? After all, Jason's bank won't hand over the title, that pink piece of paper showing who owns the vehicle, until they are paid off.

According to Consumer Advocate Rosemary Shahan, "the dealers are cheating, and promising to pay off the loan. Then they don't."

She says dealers across the California are skipping out on paying off trade-ins, then closing their doors. I asked her how many people are affected by this.

"It's thousands of people."

"Is it legal for these dealers to be selling cars without a pink slip in hand?" I asked.

"They can sell the car before they get the pink slip," Shahan said.

It's true, a dealership has 30-days to produce the title, but a lot can happen in those 30-days. We've learned Jason's truck has changed hands four times. But that pink slip hasn't moved once. Jason traded the truck in to Carmean Dodge, who sold it to a local auction house. Then that auction house sold it to the dealership on Auburn Blvd, where we found it, ready to be sold again.

The dealer told us he was within the 30-day period waiting for the pink slip from the auction house where he bought it. We know he may never get it, because Carmean Dodge never did pay off Jason's loan.

Shahan says, "Peoples lives are being destroyed by this."

Just ask Moriah and John Plato. They're on the other end of this problem.

"It's frustrating, very frustrating," Moriah told CBS13.

They bought their 2003 Hyundai 2-years ago from Warren's Discount Auto Sales, also on Auburn Blvd. in Sacramento. That dealership closed before handing over the car's title, and without it, Moriah says they can't register their car.

"So we're stuck with that $400.00 car payment and no registration and no way to refinance or trade it in."

To top it off, their car could be repossessed at any time, because the dealer that sold it to them never paid off the previous owner's loan, never obtaining the actual title.

So how could California, the state you live in allow you to be left holding the bag? We found somebody at the State Capitol shaking her head asking that same question.

"I was shocked to come to understand that this could happen under our system of law." Senator Ellen Corbett of San Leandro wants to change the law.

"So under your bill, if a dealer does not have a pink slip in their hand, they cannot sell the car?" I asked.

"That's right, it they haven't actually transferred the title they can't go ahead and sell it to another person."

"Seems like common sense to you?"

"Of course if does."

In addition, if a dealer doesn't follow the rules, her bill allows customers to personally sue the owner of the dealership, even if they go out of business. Under the current law, you can't. Moriah has a strong opinion regarding who is responsible.

"I really think that it's the owner of Warren's Discount Auto's responsibility. I honestly believe that we should be able to go after him," Moriah Plato told CBS13.

Corbett's bill comes too late for the Plato's and Conant. Jason tells us:

"It really makes you wonder about walking in to somewhere and just dropping off your vehicle and driving off with a new one."

Until there's a change in the law, it's up to anyone trading in, or buying a car from a dealer to protect themselves. Kurtis asked Rosemary about that.

"Walk in there and say I am not buying this car until I see that pink slip?" I asked.

"That's right."

People stuck in this situation can access bond money, meant to help consumers stuck in this situation. You can find out the dealers bond company through the DMV. The problem is only $50,000 is available for each dealership and when the money is gone, it's gone. Corbett's bill would increase the bond money required to $250,000 for large Dealerships and to $100,000 for independent lots. In this economic climate, the bill is expected to face opposition from struggling car dealers who say this added expense could put them under.

Remember Jason's old truck? His bank finally found it, and repossessed it because Carmean Dodge never paid it off. Jason now has a "vehicle repo" on his credit report. We worked with the DMV and helped get the Plato's a temporary registration on their car, but it expires this month, and they still have no title.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
Click to expand...

TacoCo · Mar 12, 2009

I don't understand why anyone would trade a car/truck in. If you're worried about the hassle of selling it, list it for the trade-in value and see how fast you can sell it to a private party... you'd be surprised, especially if you own a Toyota.

trailmaster308 · Mar 12, 2009

That sucks. Another good reason to use freecreditreport . com or some other service of this nature.

I own my vehicle and have the papers to prove it.

MyToyTaco · Mar 12, 2009

i'd go postal..

Liam1234 · Mar 12, 2009

TacoCo,

In Massachusetts, we have the Lemon Law and its not just for new cars. If I sell you my used car and the transmission (or anything) breaks within 30 days then I have to fix it. The law states that if a seller sells a car and never informed the buyer of say a potential tranny issue and the tranny dies then the seller pays.

It sounds great in theory, right? Protect the buyer from shady sellers. It does.
However, shady folks buy cars and get them "checked over" by "mechanics" and the "mechanic" states, writes, documents that the previous owner had to of know of this issue because of x,y and z.....

The buyer ALWAYS wins in small claims court. Its not worth the hassle especially on a older car with high miles. I just traded my 04 Saab with 108K miles on it. No way would I sell it privately.

TacoCo · Mar 12, 2009

Liam1234 said: ↑

TacoCo,

In Massachusetts, we have the Lemon Law and its not just for new cars. If I sell you my used car and the transmission (or anything) breaks within 30 days then I have to fix it. The law states that if a seller sells a car and never informed the buyer of say a potential tranny issue and the tranny dies then the seller pays.

It sounds great in theory, right? Protect the buyer from shady sellers. It does.
However, shady folks buy cars and get them "checked over" by "mechanics" and the "mechanic" states, writes, documents that the previous owner had to of know of this issue because of x,y and z.....

The buyer ALWAYS wins in small claims court. Its not worth the hassle especially on a older car with high miles. I just traded my 04 Saab with 108K miles on it. No way would I sell it privately.
Click to expand...

Gotcha. I bought my 4Runner off of a guy that had listed it in the paper for the trade-in value. I was happy to get a sweet deal on it, and he was happy that he was able to sell it to someone that appreciated it and didn't get bent over by the dealership, so it was a win-win for both of us. I wound up putting well over 100k miles on it, and never had a problem.

Bakemono · Mar 12, 2009

Its BS that a dealership could do that. Hopefully the bill gets passed. Its BS that a dealership can essentially pass their debt onto an someone else, ruining their credit and pretty much, their life.

Toy4Life · Mar 12, 2009

California sounds awesome.

MsTRD · Mar 12, 2009

last year my boyfriend sold his car to a dealership.. he owed more than they offered so when he was selling it to them he had to give him the extra $1500 to the dealership so they could pay it off completely...a couple weeks went by and they hadn't paid it off but his check had been cashed.. it turned out that the dealership sold his car, went out of business and the owner was trying to leave the country. it was a big huge mess for a couple months and he had to make payments on his loan when it was supposed to be paid off while the new owners were also paying for it,eventually the bank that the new owners got the loan through paid off his loan so they could have the title and he got his $1500 and the 2 payments back. don't know what happened to the owner but he screwed over A LOT of people.

wheresthericego · Mar 12, 2009

I own all my vehicles. If I cant pay cash for it then I don't buy it. A handshake and title is the way to go. Eff paying the depreciation on a new vehicle anyways. Thats money wasted

stevigee · Mar 12, 2009

Wow... what has gone wrong in America!

tacoholic · Mar 12, 2009

I would find the guy, beat the shit out of him, take his car, take his money, and kick him in the nuts.

I can't believe somebody would do that, the morals and liability behind it is just terrible...not to mention the bad karma they'd get.

Sell it yourself and buy it straight up, you'll usually have no problems.

HerNameIsLucy · Mar 12, 2009

another pack-o-shitbags stealing money from honest people.

under MY law, on tuesdays between 6PM and 9PM people would be allowed to shoot walking dirtbags like that, and only pay a $50 "unauthorized discharge of a firearm within city limits" fine.

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