Used Auto Sale Problem

[zoso]

Hello and thank you for reading my post.

I am in a bit of a situation. I recently purchased a used truck through a used car dealership. I found myself having problems with the truck immediately after I purchased it. I soon come to realize that I hadnt received my registration and my temporary registration was expired. I called the dealership and they said that they had made a mistake and hadnt done a safety or smog check (and I doubt it would pass) and that they couldnt register it until they got to smog the truck. So I contacted the finance company and explained to them that I was not going to send in the payment until the truck was legally drivable. well I got pulled over a couple weeks later and the dealership hadnt yet let me know when to bring in the truck. I ended up getting arrested and was fighting my case from inside Los Angeles County Jail for 2 mos. Durring that time the finance company repossessed the truck and wont return my calls. So I lost my $2000 deposit and about 2 payments. what can I do about this? Did their neglect to safety and smog the truck void the contract and am I entitled to my deposit and payments back without being financially responsible for the loan? any kind of help would be greatly appreciated!
thanks!
Tim

 

[Michael Wechsler]

1) Why were you driving a truck that was not legal to be driven? This will hurt your case.

2) Most importantly, what were the terms of the agreement? Did the company warrant and represent that the truck was in drivable condition and would pay all expenses necessary to bring the truck to such a condition?

3) Why was the truck repossessed? I don't understand. Did you default on the loan thinking that they will care about a dispute between you and the seller? This is where your problem lies and the fact that you didn't bring the truck in for the seller to fix it. You didn't give the seller the opportunity to fix the condition of the truck and, instead, took it out on the financing company who already sent money to the seller.

Very difficult problem. I'm not sure what you may recover but you should get some money back if the repossession cost less than $2K, which it should have (although the costs are likely overinflated.) Good luck with this - not sure how to help.

 

[zoso]

1) Why were you driving a truck that was not legal to be driven? This will hurt your case.

2) Most importantly, what were the terms of the agreement? Did the company warrant and represent that the truck was in drivable condition and would pay all expenses necessary to bring the truck to such a condition?

3) Why was the truck repossessed? I don't understand. Did you default on the loan thinking that they will care about a dispute between you and the seller? This is where your problem lies and the fact that you didn't bring the truck in for the seller to fix it. You didn't give the seller the opportunity to fix the condition of the truck and, instead, took it out on the financing company who already sent money to the seller.

Very difficult problem. I'm not sure what you may recover but you should get some money back if the repossession cost less than $2K, which it should have (although the costs are likely overinflated.) Good luck with this - not sure how to help.

first Id like to thank you for answering my post.

While I was driving the truck, it was to my knowledge legal to drive. I purchased the truck through a used auto dealer and I had signed a contract stating that I was receiving a vehicle that was legal to drive. after I had realized that my temporary registration was about to expire and I hadn't yet received the permanent registration (about 45 days after purchase), I then contacted the dealer. That is when they had told me that the made the mistake of selling me the truck without it being safety and smog checked (which is illegal and I believe it voids the contract), and that they could not register the truck until the problems are addressed. This is when I set an appt to get these required checks done. I couldn't make the set appt so I called and rescheduled. I was soon after arrested and incarcerated for 2 mos ( I was pulled over for the expired tags). within those two mos is when the auto was repossessed because I obviously couldnt make the payments from jail. The reason I didnt make the payment that was due when I found out that the truck wasnt legally sold to me is because the truck was having problems with the emissions system and I thought that the contract would be void.

As far as I understand, and Ive worked in the auto industry and have close friends that are financial managers, a dealership cannot sell an auto without the smog and safety check. If it is sold by accident then the original contract is void, the vehicle has to undergo those checks, and a new contract has to be drawn for after those checks. The vehicle was never actually registered in my name through the department of motor vehicles.

I hope this helps clarify and I really appreciate your help!

-Tim

 

[Michael Wechsler]

While I was driving the truck, it was to my knowledge legal to drive. I purchased the truck through a used auto dealer and I had signed a contract stating that I was receiving a vehicle that was legal to drive. after I had realized that my temporary registration was about to expire and I hadn't yet received the permanent registration (about 45 days after purchase), I then contacted the dealer. That is when they had told me that the made the mistake of selling me the truck without it being safety and smog checked (which is illegal and I believe it voids the contract), and that they could not register the truck until the problems are addressed.

So far so good. I think it is a breach but not one that could not be remedied. I'm not sure it's a material breach if they could fix it easily (also called "cure" which probably is a provision in your agreement.)

This is when I set an appt to get these required checks done. I couldn't make the set appt so I called and rescheduled. I was soon after arrested and incarcerated for 2 mos ( I was pulled over for the expired tags).

Here is your problem. Once you KNEW the vehicle was not fit to drive, you needed to stop driving the vehicle. You should have called them about making an accomodation, e.g. either they will pick up the vehicle or instructions on what needed to be done to bring it in plus an issue of what to do during the time you may be without a vehicle. When was the set appointment? This couldn't be done within the next day or two?

Next - Are you saying that you were incarcerated as a result of driving with expired tags? From my experience (at least in my state) I don't think that would happen. Was there another reason for your incarceration?

within those two mos is when the auto was repossessed because I obviously couldnt make the payments from jail. The reason I didnt make the payment that was due when I found out that the truck wasnt legally sold to me is because the truck was having problems with the emissions system and I thought that the contract would be void.

As far as I understand, and Ive worked in the auto industry and have close friends that are financial managers, a dealership cannot sell an auto without the smog and safety check. If it is sold by accident then the original contract is void, the vehicle has to undergo those checks, and a new contract has to be drawn for after those checks. The vehicle was never actually registered in my name through the department of motor vehicles.

1) Did you ever contact the finance company about your termination of the contract?

2) If so, did you continue to drive the vehicle? If you did, you've got a problem - you can't terminate the contract yet continue to enjoy the benefit of using the vehicle until you feel like returning it.

3) Was your arrest the direct cause of driving this vehicle without tags or (a) were there other circumstances (e.g. past DWI) that was a reason for your incarcertion, and (b) was your arrest due to your *continued* driving of this vehicle without tags after knowing you could not drive it legally?

I think you see where I'm going with this.

 

[zoso]

As far as I understand the truck was legal to drive because I had a temporary registration that was issued to my name. I think more of the issue im having is that the transaction was illegal. They shouldnt have sold me the truck in the first place because it was not safe to drive. They set the appt for about two weeks after I had called them about the problem and was told that I could still drive the truck and that I would have to bring it in. The dealership is about 75 miles or so from my home so it would end up being a full day trip to get the issue handled. they told me that they could not pick up the truck so I would have to drive the truck anyways.

My arrest was not at all linked to the truck or the sale. It was for a criminal warrant that I was not aware of and am still fighting in the courts ( we are in pre-trial).

Technically the contract was not yet void at the time, but a new contract would have to be drawn in order to complete the sale after the issues were addressed. Its tough because as far as I understand the contract was illegally drawn in the first place so Im not sure how to go with this.

I did let the finance company know of the issue and I explained that the contract would most likely have to be resent as a new purchase. They agreed and said that it was ok to wait until after my appt to send the next payment. This payment ended up being one of 3 missed payments due to my 2 month incarceration.

The tags on the vehicle were expired when I purchased it. they had told me that I would receive new tags in the mail before my temporary registration had expired and in the case of being pulled over, to use the temporary registration which is displayed on the front windshield.

One more thing... It is not illegal for me to drive an auto that has not been smogged. It must be smogged every other year when renewing your registration. If it does not pass then they give you an extension with a temp registration. If you do not get it smogged by then, they give you a fine and deny registration. But it is a law that a dealership MUST smog and safety every vehicle that they buy or sell before it can be sold to the public.

thanks again for your time and effort. I hope this helps clarify.

-Tim

 

[Michael Wechsler]

It is not illegal to sell you a car that doesn't pass inspection. In this instance the seller was willing to make good. Regardless, your problem is that failure to make payment had to do with your criminal warrant - that's one key determining factor (as if the seller could even be found responsible to pay beyond rescinding the sale and returning your money in exchange for the vehicle.) I think you've got a lost case. This was a minor breach of contract and seller was willing and able to make good.