QuestionThank you for taking the time to respond.
In September, 2009 I purchased a used car at a used car dealership in New York. He showed me a carfax report and indicated that there were no issues and that the car was clean. I paid via check and received an invoice and was told to pick it up the next day. He gave me a temporary registration as well as NY plates and also indicated that the title is in the mail as the paperwork was handed in to the DMV. Additionally, he gave me a key which appeared to be a valet key. When asked what happened to the original, he indicated that he will contact the previous owner regarding it and that he will have it soon for me.
Weeks and now months pass and during this time, he has been issuing me temporary registrations month after month. Also, I probably made about $1,000 in repairs and another $300 for creating a master key as well as programming it for my car.
Recently, in Feb. 2010, I received news that the dealership was being "audited" by the IRS and that they are in possession of the title which is holding me up from obtaining it.
A couple of weeks later, I received news that the dealership went out of business. Soon after, I contacted the dealer which he typically never answers his cell phone and tells me the title was mailed via FED EX. I waited a week and called back and he later indicated that the title was sent back because no one was home. Despite this, FED EX never left a note indicating their arrival.
Today, I received a call that the title was delivered personally by him to my house. Upon arriving home, I notice that I received the title but with a lien on it. I contact the dealer and he indicates that he is trying to contact the previous owner and that he will get back to me. There is a person's name as well as their address on the title but I'm unsure whether this is the actual person that was the last owner as the carfax report indicated there were 2 besides myself.
1. What are my options?
2. Can I sue the dealership even though they are out of business (what if they claimed bankrupcy)?
3. Can I ultimately return the car(I know it sounds silly due to the fact that they are out of business)?
4. What can I do to retain my title because I will not be able to obtain proper registration?
5. Would I be liable to pay for the balance owed if there still is a balance?
6. How do I find out the lender and amount owed without contacting the seller?
AnswerDan,
Thanks for your question, and I am sorry that you are going thru this. Let me answer your questinos one by one.
1. Your options are farely limited, but you do have a few, but they will cost some money.
2. Yes, you can sue the dealership, even if they are in the middle of bankruptcy, you can still sue them, and file a complaint with the DA of your county, as well as the state motor vehicle division. You can contact them to get the most help with this issue.
3. Technically you can return the vehicle, problem is, you would need to get your money back, and based on the issues of them going out of business and being audited by the IRS, the likelyhood of getting your money back will be slim to none.
4. To retain your title, you will need a lien release, which should have been provided to the seller - the company that went out of business. If that is not possible, you can try to contact the last owner to see if they happen to have it or if they can help you. You can also call the DMV in your local county or state to help you with this issue.
5. Technically you are not liable for anything, as the vehicle has not been titled to you, and you are not the one that bought it from the last owner (not the dealership). The dealership is liable to pay off the balance if there is still a balance. If there is a balance and the dealer has not fulfilled it, then they committed a felony - File charges!
6. There really isn't a way to find that information other than contacting the last know consumer owner (not the dealership) or by calling the dealer that sold it to you. In all likelyhood there isn't a balance owed or the owner would not have even been conversing with you and answering your phone calls or returning them. That person would have been avoiding you at all cost.
This is a very unfortunate situation you have yourself in, but it happens more often than people know. All State Department of Motor Vehicles have systems set up to help consumers in situations like this. Your best bet is to call them to have them help you.
Hope this helps.
Thanks - JB
