Ontario buyer who purchased car with lien has it repossessed
A Windsor, Ont. man said a car he bought in a private sale was repossessed from his driveway because the man he bought it from didn’t pay his car loan.
“I don’t have the car. I don’t have the money. Everything is gone,” Mohammed Salman said.
When you borrow money to buy a car the bank will usually place a lien on the vehicle, which will stay in place until it's paid for.
But if you buy a used car from someone and there is a lien on it, you're responsible for the debt and could have to pay it or you could lose the car.
Salman said he found a used Mercedes Benz on Kijiji and came to Toronto to buy the car in a private sale in December of 2019.
Just as the deal was closing Salman said the seller mentioned there was a lien on the car, but promised he would pay it back in about a month.
“At the beginning he never told me there was a lien on the car," Salman said.
Salman said he was concerned and had the man sign a contract that said he would pay back the loan on the car, but he never did.
Salman said he gave the seller $16,500 for the car and then later he spent another $4,000 in repairs.
It was about one year later that Salman got a letter from a bank stating there was a lien on the car and that he would have to pay the loan back or he would lose the car.
“We received a notice from the bank saying you just have one week, if you don't return the car in a week we will file a case against you."
Even though Salman told the bank it wasn't him that owed the money, the car was still repossessed from his driveway.
John Carmichael, CEO of the Ontario Motor Vehicle Industry Council (OMVIC) said, “when buying a car privately, you've got to be certain that the lien is paid off and removed at the time of purchase or before and you want proof."
OMVIC said when it comes to liens on vehicles, consumer protection laws don’t apply to private vehicle transactions, which is why consumers must do their own due diligence before turning over money.
Buyers are also advised to get a Used Vehicle Information Package (UVIP) or Carfax which will provide lien information.
Car dealers registered dealers with OMVIC cannot legally sell a car with a lien on it. When it comes to private sales, if a car is purchased with a lien the new owner can be held responsible for it and there can be more than one lien on a vehicle.
“The buyer has to ensure when they buy a used vehicle that it is free of all liens and encumbrances. It's just the way you have to do business today” said Carmichael.
While Salman could go after the seller to try and get his money back, he said now the man is nowhere to be found.
If you buy a car from an OMVIC registered dealer that has a lien on it, you would be eligible to get your money back from OMVIC’s compensation fund.
CTVNews.ca Top Stories
BREAKING Orca calf that was trapped in B.C. lagoon for weeks swims free
An orca whale calf that has been stranded in a B.C. lagoon for weeks after her pregnant mother died swam out on her own early Friday morning.
Minister 'outraged' after AFN national chief's headdress taken from Air Canada cabin
The federal minister of Crown-Indigenous relations is calling on Air Canada to 'make things right' with the national chief of the Assembly of First Nations, who said her headdress was removed from an airplane cabin during a flight this week.
Sophie Gregoire Trudeau on navigating post-political life, co-parenting and freedom
Sophie Gregoire Trudeau says there is 'still so much love' between her and Prime Minister Justin Trudeau, as they navigate their post-separation relationship co-parenting their three children.
From faulty kids' cribs to flammable kids' bathrobes, here are the recalls of the week
Health Canada issued recalls for various items this week, including kids’ bathrobes, cribs and henna cones.
Taylor Swift dons Montreal designer's dress in 'Fortnight' video
A pair of Montreal designers' work has now been viewed over 41 million times. Taylor Swift dons a Victorian throwback black gown in her latest music video, 'Fortnight', designed by UNTTLD due Simon Belanger and Jose Manuel Saint-Jacques.
'Too young to have breast cancer': Rates among young Canadian women rising
Breast cancer rates are rising in Canada among women in their 20s, 30s and 40s, according to research by the University of Ottawa (uOttawa).
'Violation': CSIS had officer investigated after she reported a superior raped her
A CSIS officer's allegations that she was raped repeatedly by a superior in agency vehicles set off a harassment inquiry, but also triggered an investigation into her that concluded the alleged attacks were a “misuse” of agency vehicles by the woman.
'I was scared': Ontario man's car repossessed after missing two repair loan payments
An Ontario man who took out a loan to pay for auto repairs said his car was repossessed after he missed two payments.
Charlie Woods, son of Tiger, shoots 81 in U.S. Open qualifier
Charlie Woods failed to advance in a U.S. Open local qualifying event Thursday, shooting a 9-over 81 at Legacy Golf & Tennis Club.