Tips on Buying Cars: Dealer went out of business, dmv office, better business bureau

Question
My son bought a Neon last year from a fledgling car dealer. The dealer soon after went under and essentially fell off the face of the earth. He(my son)was unable to find or contact the dealer, even calling the Chamber of Commerce and the Better Business Bureau to try to find him. The loan for the car was done through the dealer. My son has been unable to send payments - no address. The car has no clear title.  He ended up getting another vehicle through an established dealer.

Recently, the owner/dealer has shown up at my son's apartment - leaving messages that he wants his money. He leaves no number, but he wants his money. The car has not been driven in months, but has been parked in his parking space.

This is all very bizarre. Is the loan still outstanding to the individual or some other entity? Can't he just take the car back?

Any thought or advice?

Answer
Patrick,

Thanks for your question.  This is a very weird situation.  The first thing that I would do is call your local Department of Motor Vehicles, and get clarification on what can and can not happen.  Technically, even if he falls off the planet, your son still has an obligation to pay the car note.  In this situation, your son should have mailed the payments.  Now they may have been returned, but your son can prove that he made the attempts to make the payments.  Even if a dealer goes out of business, your son still has an obligation.  Now, with that being said, it is very difficult for anyone to enforce a loan, when they have not been on the "planet" for a few months.  Your son needs to call the local DMV office and get clarification on what he should do.  I have never run into this situation, so I am not quite sure how to advise you other than calling the local DMV office or whatever state office enforces laws and regulations on automobile dealerships in your state and get some help that way.  The chamber of commerce and the Better Business Bureau will not be able to help you, all you can do is file a formal complaint there, which your Son needs to do.  

Hope this helps a little.

Thanks - JB