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 Quebec judge orders bus driver to stand trial for 2023 daycare crash deaths
A judge has ordered a Quebec man to stand trial on charges of first-degree murder in the deaths of two children killed when a bus rammed into a Montreal-area daycare last year.
Trudeau promises $1B in loans for child-care providers to expand care centres
The federal government is launching a new loan program to help child-care providers in Canada expand their spaces, and will be extending further student loan forgiveness and training options for early childhood educators, Prime Minister Justin Trudeau announced Thursday.
Sunshine list: These were the Ontario public sector's highest earners in 2023
Ontario released its annual sunshine list Thursday afternoon, noting that the largest year-over-year increases were in hospitals, municipalities, and post-secondary sectors.
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.
Multiple bridges in Calgary shut down for police incident
Calgary police have shut down a number of bridges into and out of the downtown core as officers deal with a distraught individual.
N.B. man wins $64 million from Lotto 6/49
A New Brunswicker will go to bed Thursday night much richer than he was Wednesday after collecting on a winning lottery ticket he let sit on his bedroom dresser for nearly a year.
Why some Christians are angry about Trump's 'God Bless the USA' Bible
Former U.S. President Donald Trump is officially selling a copy of the Bible themed to Lee Greenwood’s famous song, 'God Bless the USA.' But the concept of a Bible covered in the American flag has raised concern among religious circles.
'Nonsense:' Doug Ford slams lawsuits filed by Ontario school boards against social media platforms
Premier Doug Ford says that lawsuits launched by four Ontario school boards against a trio of social media platforms are “nonsense” and risk becoming a distraction to the work that really matters.
BREAKING Calgary officer charged after allegedly assaulting handcuffed man
A Calgary police officer has been charged after allegedly assaulting a handcuffed man two years ago.