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  1. #1
    Join Date
    Dec 2008
    Posts
    6

    Unhappy Is It Legal for a Dealership to Sell a Vehicle Without a Title

    My question involves vehicle registration or title in the state of: Louisiana

    In June of this year my husband purchased a 2007 Dodge Dakota from a small dealership in our area. He got it financed and insured it and we have been paying the notes for the past six months well, my husband still hasn't received the title and can not get it registered in his name. He has been calling the dealership almost everyday asking when he will get his title and they keep giving him the run around. I find it extremely odd because when he called about a month ago or so, one of the women there told him that they were trying to get the title from Texas because they bought it from an auction there. She also told him that they were having a hard time because the truck has two liens on it...ok so first of all I've always been under the impression that someone can "not" legally sell a vehicle without a title and second I also did not believe that they were able to sell a vehicle with a lien on it much less two liens.

    We have been trying to find an attorney to help us out with all of this but we can not seem to find one that does that sort of thing or wants to bother with it. Today I called the justice of the piece and she advised us to contact the Louisiana Used Car Commission but what I am wanting to know is if there is really anything we can do about sueing the dealership or what grounds would we sue under? I researched a little on the Louisiana Used Car Commission and I am under the impression that they are only about revoking the licences of the dealership charged of missconduct, I'm not sure if they would be the ones to represent my husband in court and to get his title.

    I am also wanting to know, if we were to find an attorney to help him, if my husband would need to get the finance company involved in the situation, because they financed a vehicle without a title and not checking to see if there were any liens on it, which is something I assumed finance companies were supposed to do before they approve a vehicle loan.

    I would appriciate any expert advice on this situation, it has been six months and my husband is getting extremely impatient with this entire ordeal. It has all been such a hassle.

  2. #2
    Join Date
    Jul 2008
    Posts
    471

    Default Re: Is It Legal for a Dealership to Sell a Vehicle Without a Title

    This isn't a big deal and is very common. And while I can't say for certain how it works in your state in mine you don't get the title until the car is paid off. If you have the title you can sell the car, thus the loan company keeps it.

    PS there is no way a company will lend you money without a title, so there is a title and your loan company has it.

  3. #3
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Is It Legal for a Dealership to Sell a Vehicle Without a Title

    That's a pretty rash assumption.

  4. #4
    Join Date
    May 2007
    Location
    Philadelphia, PA
    Posts
    75

    Default Re: Is It Legal for a Dealership to Sell a Vehicle Without a Title

    I have purchased several vehicles with financing over the years and have never received the title until the vehicle is paid off. The dealer should have registered the vehicle (or filled out the paperwork for registration) at the time of purchase. Maybe the dealer is giving you information that is not accurate.

    My suggestion would be to contact the bank or financial institution to confirm all their paperwork is in order. I can't imagine a bank financing a vehicle without a Title.

  5. #5
    Join Date
    Dec 2008
    Posts
    6

    Default Re: Is It Legal for a Dealership to Sell a Vehicle Without a Title

    That is just the thing though, we have contacted the finance company, which is not a bank, and they are telling us that they "do not" have the title and the car dealership is telling us that they still have not got it from the finance company of the previous owner. I honestly don't know what is going on. I too have never heard of a finance company lending money for a vehicle without a title, but then again I have never even heard of this particular finance company until my husband purchased the truck. When the woman from the dealership told my husband that the original finance company "supposedly" still had the title because of the liens she also told him the name of the company, so I have thought about calling them to try and get information about it but I wan't sure if they could give out information like that.

    We just have no idea what to do, I'm really starting to think that this is all some kind of horrible scam but the fact is we have been paying notes to this finance company and they do not have the title nor does the car dealership.

  6. #6
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,906

    Default Re: Is It Legal for a Dealership to Sell a Vehicle Without a Title

    I suspect your lender is satisfied that the dealer owned the car, and thus that it will eventually be able to perfect its lien.

  7. #7
    Join Date
    Dec 2008
    Posts
    6

    Default Re: Is It Legal for a Dealership to Sell a Vehicle Without a Title

    Yes, I completely understand what everyone is saying and I sincerely appriciate the advice but what about the registration? He is unable to get the truck registered because according to the dealership the lien is still active. Wouldn't my husband get a ticket for no registration if he were to get stopped by the police? He also uses his truck for his job and has to be able to claim his miles on his taxes and without registration he is unable to do that.

  8. #8
    Join Date
    Jul 2008
    Posts
    242

    Default Re: Is It Legal for a Dealership to Sell a Vehicle Without a Title

    You have been making payments on a vehicle that is not your and was not the dealer's to sell if they did have the title to it. The prior owner probably authorized the dealer to pay off their lien. Dealer's normaly go ahead and find another buyer for the vehicle realizing that the prior owner's bank will send them the title as soon as they receive the funds. However, if there was a second lien, my guess is that the dealer is now trying to track down the prior owner to have them also authorize them to pay off that lien. If this never happens, you are out of luck. You cannot, nor can the dealer prove any kind of ownership to this vehicle. It belongs to that second lienholder. I'm having a hard time understanding though how YOUR lienholder is accepting/demanding payments on the vehicle when it is owned by someone else and they do not have the title to it. I would say that if the dealer gets that lien signed off on, you should be able to get your money back from your lender as well as the dealership for any additional administrative" fees they charged you during the sale.

    They basically cut corners to make a sale and left you hanging. Pull up and park the thing right back in their lot and let them know you are not going to put up with being swindled.

  9. #9
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,906

    Default Re: Is It Legal for a Dealership to Sell a Vehicle Without a Title

    It's pretty simple to understand why his lender wants payment - they loaned him money, which he used to buy the vehicle. Title problems aside, he also has full use and enjoyment of the vehicle.

    If he wishes to try to get the dealership to rescind the transaction, based upon its inability to provide valid title, he may be able to do so; but that doesn't mean he'll necessarily recover anything from the lender.

  10. #10
    Join Date
    Jul 2008
    Posts
    242

    Default Re: Is It Legal for a Dealership to Sell a Vehicle Without a Title

    Quote Quoting aaron
    View Post
    I suspect your lender is satisfied that the dealer owned the car, and thus that it will eventually be able to perfect its lien.
    Proof of ownership is issuede by the State in the issuance of a title doesn't it? The loan would need to be secured with a Title. In other words the bank has NO collateral on the vehicle whatsoever. A dealer cannot sell a vehicle that has not properly been signed over to them. This is NOT for finance companies to determine. It is written in law in most States.....

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