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
Former homicide detective explains how police will investigate shooting outside Drake's Bridle Path mansion
Footage from dozens of security cameras in the area of Drake’s Bridle Path mansion could be the key to identifying the suspect responsible for shooting and seriously injuring a security guard outside the rapper’s sprawling home early Tuesday morning, a former Toronto homicide detective says.
RCMP not investigating possible foreign interference cases related to Chiu, Dong: Duheme
Canada's federal police force is not investigating any possible instances of foreign interference in the cases of former Conservative MP Kenny Chiu and Liberal-turned-Independent MP Han Dong, RCMP Commissioner Mike Duheme says.
Stormy Daniels describes meeting Trump during occasionally graphic testimony in hush money trial
Stormy Daniels took the witness stand Tuesday at Donald Trump's hush money trial, describing for jurors a sexual encounter the porn actor says she had with him in 2006 that resulted in her being paid off to keep silent during the presidential race 10 years later.
Bye-bye bag fee: Calgary repeals single-use bylaw
A Calgary bylaw requiring businesses to charge a minimum bag fee and only provide single-use items when requested has officially been tossed.
Air France flight from Paris to Seattle lands in Iqaluit after heat smell in cabin
A plane travelling from Paris to Seattle was forced to make an emergency landing in Iqaluit after there was a heat smell in the cabin during the flight.
CFL suspends Argos QB Chad Kelly at least nine games following investigation
The CFL suspended Toronto Argonauts quarterback Chad Kelly for at least nine regular-season games Tuesday following its investigation into a lawsuit filed by a former strength-and-conditioning coach against both the player and club.
Boy Scouts of America changing name for first time in 114 years, aiming for inclusivity
The Boy Scouts of America is changing its name for the first time in its 114-year history and will become Scouting America. It's a significant shift as the organization emerges from bankruptcy following a flood of sexual abuse claims and seeks to focus on inclusion.
Federal government grants B.C.'s request to recriminalize hard drugs in public spaces
The federal government is granting British Columbia's request to recriminalize hard drugs in public spaces, nearly two weeks after the province asked to end its pilot project early over concerns of public drug use.
opinion Tom Mulcair: Trudeau's handling of Poilievre's 'wacko' House turfing a clear sign of Liberal desperation
When Speaker Greg Fergus tossed out Pierre Poilievre from the House last week, "those of us who have experience as parliamentarians simply couldn't believe our eyes," writes former NDP leader Tom Mulcair in his column for CTVNews.ca