Bought a car with finance/security on it, can the last owner get in trouble?

We have sold a commodore, only to find out from the new owners there is finance on it - from the people we bought it off about 8 months ago. They paid out the car loan (and provided us with a certificate), but we have since found out they were obtaining a PERSONAL loan while they were selling the car, and using the car as security for that loan. The loan is with GE - they tell me it is a breach of contract, but since the loan is not specifically a %26quot;car loan%26quot;, im wondering if they can still take the car? Can we sue these people or something? Does the previous owner get in trouble for selling a car he was using as security for a personal loan? Also, the new owners want their money back but we have spent it ($15,000.00!!!!), but my boyfriend wrote a receipt saying he would pay him back the money if he wanted to do so, if this issue wasnt sorted out within a week. Its been 2 now. Ive googled till my fingers hurt - i cant find ANYTHING. Please help!!!!!

Bought a car with finance/security on it, can the last owner get in trouble?

You are caught in the middle of a legal mess. Never, ever, purchase a vehicle without a proper title signed by the previous owner. If they can%26#039;t produce a legal title, pass the deal by. They committed an illegal act when they sold you the car before they had the debt paid on it. It does not matter if it is not a car loan, if the car was put up as collateral for a loan, it can be seized if the loan is not paid. And yes, you can sue the people you purchased it from, as well as the people you sold it to can sue you. You%26#039;ll probably need to discuss this with an attorney, since it seems to be quite a bit more $$$ than most small claims courts will handle.

Bought a car with finance/security on it, can the last owner get in trouble?

Thats a pretty complicated legal issue and you should really talk to an attorney. The correct answer really depends on a lot of things. It could even be the case that people who purchased the car AFTER the people you bought it, are not bona fide purchasers, and so the one in possession of the car now have the car repo%26#039;d by the finance company and then you%26#039;d get sued and you%26#039;d have to sue the person you bought it from. You really need to get y our paperwork together and go see an attorney. You%26#039;re not going to find the answer on google.

Bought a car with finance/security on it, can the last owner get in trouble?

There is a lot of useful and intresting information here to help answer your quetion.http://carloan.featured-resources.info/c...