Comments on: Buying (or selling) a used car

By: David Wisniewski

David Wisniewski — Sat, 07 Feb 2009 20:57:36 +0000

I don’t know about other states, but in NJ, that smacks of a violation of the Consumer Fraud Act, which will allow you to circumvent the corporate debtor’s bankruptcy and allow you to go after the owners of the company individually in court.

By: Todd Rogers

Todd Rogers — Fri, 06 Feb 2009 20:28:54 +0000

Well of course one should demand a title. Buyer beware, acquiring a titled asset without seeing said title is asking for trouble. But, I know the drill. Some people just don’t think that far ahead. But if the seller’s dog ate it, or some other thin excuse is used, there are myriad services which for the low-low price of $25 (rhymes with tar-wax) you can get a limited vehicle history and cross reference with previous state’s public records in under ten minutes.

By: Benjamin

Benjamin — Fri, 06 Feb 2009 20:14:06 +0000

The lien are listed on the title. Demand to see the title. If their are liens listed then (don’t walk, but) run away.

By: CarLitGuy

CarLitGuy — Fri, 06 Feb 2009 19:21:22 +0000

Some states are “title holding” states – that is, the owner of the vehicle physically holds the title document. In those states, at least, you can insist on seeing title before completing the sale (typically, state law governing auto dealerships require that title be kept on premises). If a clear title, free of lien, can not be provided – walk away.

By: nevins

nevins — Fri, 06 Feb 2009 18:30:30 +0000

Unfortunately the above suggestion might not help the buyer. If the car has a lien from the previous owner that has not been properly cleared through the dealer transaction, then the buyers diligence will not help. Unless there is a foolproof way for a used car buyer to find an outstanding lien reliably, then this will always be a risk. Something akin to home title insurance, if it exists for cars, might be worth a few bucks.

By: Todd Rogers

Todd Rogers — Fri, 06 Feb 2009 18:10:53 +0000

Of course, there are two distinct ways to avoid such a boondoggle:
1) Always find your own financing before arriving at the dealer’s point of sale;
2) Finance your vehicle in such a way that it does not go upside down (say three years or fewer.) This little snag points to a small part of the current economic climate: people were, and still are in many cases, living beyond their means.