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
CRA no longer requiring 'bare trust' reporting in 2023 tax return
The Canada Revenue Agency announced Thursday it will not require 'bare trust' reporting from Canadians that it introduced for the 2024 tax season, just four days before the April 2 deadline.
He didn't trust police but sought their help anyway. Two days later, he was dead
Jameek Lowery was among more than 330 Black people who died after police stopped them with tactics that aren’t supposed to be deadly, like physical restraint and use of stun guns, The Associated Press found.
Fluid in eye cells can 'boil' if you watch the eclipse without protection: expert
Millions of people in parts of Eastern and Atlantic Canada will be able to see the rare solar eclipse happening on April 8. But they should only look up if they have proper eye protection, experts say.
NEW More unauthorized products for skin, sexual enhancement, recalled: Here are the recalls of this week
Health Canada and the Canadian Food Inspection Agency recalled various items this week, including torches, beef biltong and unauthorized products related to skin care and sexual enhancement.
Where is the worst place for allergy sufferers in Canada?
The spring allergy season has started early in many parts of Canada, with high levels of pollen in some cities already. Experts weigh in on which areas have it worse so far this season.
Do these exercises for core strength if you can't stomach doing planks
Planks are one of the most effective exercises for strengthening your midsection, as they target all of your major core muscles: the transverse abdominis, rectus abdominis, external obliques and internal obliques. Yet despite the popularity of various 10-minute plank challenges, planking is actually one of the most dreaded core exercises, according to many fitness experts.
Grandparent scam: London, Ont., senior beats fraudsters not once, but twice
It was a typical Tuesday for Mabel Beharrell, 84, until she got the call that would turn her world upside down. Her teenaged grandson was in trouble and needed her help.
Polar ice is melting and changing Earth's rotation. It's messing with time itself
One day in the next couple of years, everyone in the world will lose a second of their time. Exactly when that will happen is being influenced by humans, according to a new study, as melting polar ice alters the Earth’s rotation and changes time itself.
The federal minimum wage is going up in April. Here's what you need to know
The federal minimum wage is set to increase next month. Here's what you need to know.