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financed vehicle parted out or scrapped


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#1 talvad

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Posted 14 March 2012 - 01:15 AM

Hello I am from Arkansas... i purchased a vehicle from an individual three years ago... they told me that they were in a bind and needed some money for their house payment and what ever i could get would help (the faster the better)... so they signed the title over to me so i borrowed $5,000 at my bank and gave them my vehicle in on trade for the sum of $3,000, which at that time could not produced the title cause it had been misplaced but it was 100% legally mine..and the we both agreed on the terms... then shortly after the vehicle i bought from them broke down on me... so they told me to take back my original vehicle that i had traded with them and drive it until we could figure out what we needed to do on the matter... then shortly after that they turned against me and said that our original agreement would not work for them anymore... they said they would either pay me back my $5,000 or trade with me on a different vehicle, but they never would commit on that agreement either... so what i am trying to say is that i have paid payments to my bank for the original vehicle for the past 3 years and now only have 2 payments left to pay my bank and i have been informed that they have sold all kind of major parts off the vehicle such as TRANSMISSION, TRANSFER CASE, DOORS and other small parts... with the possibility that they may have sold the whole vehicle for scrap... Can someone PLEASE explain to me what actions i can take to see some justice on this matter because i do not think they should get off with my money and or vehicle... in 2 months i should get title back from my bank... i have had contact with the seller 1 time over the past 3 years and that was about 5 months ago... they did say that if i brought them an additional 5 or $6,000 on top of the original $5,000 that they would help me find the missing parts that they admitted to selling off of the vehicle but i would have to cover the cost of the missing parts... THANK YOU VERY MUCH... any information on the matter will be greatly appreciated....

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#2 RetCopPrlgl

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Posted 14 March 2012 - 03:01 AM

To begin with, you cannot legally sell or trade a vehicle that you don't have clear title on.  The bank holds the title and has a creditor's lien.  You owe 2 payments on the vehicle, so I'd highly suggest you pay those to the bank to avoid causing yourself problems with selling 'mortgaged property".


As far as the rest of what you've posted, I can't seem to make sense out of it.


You borrowed $5,000 on the vehicle the other party gave you to purchase the vehicle for $5,000, but they gave you $3,000 credit for your trade ?  So what happened with the other $2,000 ?


As far as I can see from what you've posted, I don't see that you're out much of anything.  You used the vehicle that you borrowed $5,000 on, and owe only two more payments.  I'm assuming you still have that vehicle, broken down or not.  That's not a concern for the bank, nor the person you bought it from, since most used car sales are "as is".


As far as the parting out of the vehicle you traded to them, you wouldn't have a legal claim.  You divested yourself of ownership by trading it to them for the car you got (and financed with the bank).


Maybe I'm missing something here.

I am not an attorney. My comments are made based on my training and experience as well as diligent research.  I am also not perfect, therefore, I will accept constructive criticism, if tendered with respect.



#3 RetCopPrlgl

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Posted 14 March 2012 - 03:06 AM

My first paragraph is probably incorrect, as I've read it again.  It seems to me that  you borrowed the $5,000 on the car you GOT, not the one you traded to the other party.  Therefore, if you had clear title, there wouldn't be a problem, as I suggested.


I still suggest you pay the bank, otherwise, it will become a credit issue.  They don't care what arrangements you made with the other party.


At any rate, you may not have a claim at all, if the transaction was 3 years ago.  I'd have to guess that you may be outside the statute of limitation to take legal action.  Either way, you traded the car, and got value in kind.  You don't have a legal claim on the car they parted out or scrapped.

I am not an attorney. My comments are made based on my training and experience as well as diligent research.  I am also not perfect, therefore, I will accept constructive criticism, if tendered with respect.



#4 dulce2

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Posted 30 August 2012 - 11:06 AM

Wait I think I get it!! Joe has a car worth $8,000 you trade him your car (in trade for $3,000) and then ask your bank to loan you $5,000 for Joes car Joe gives you title which you turn over to bank as collateral on $5,000 loan. Next move is you find that the car the bank holds title to and you owe the bank $5,000 for is a lemon right? First mistake is you can not give them back a car you dont hold title too. You are required to keep said vechicle insured to protect the banks investment which Im sure you did not. Joe recives $5000 for a car he already owned gives you back your car and since Joe has no title to his lemon he parts it out and then offers to help you piece it back together!!!! Pay the bank!!! Take the title to DMV do a search on it to find out if Joe was able to get a title using fraud and if the vechicle has been salvaged sold etc. Then at the end of the day report it stolen so old Joe dosent "find" the missing parts and puts it back together and tries to register it or claim owner ship. Show your title when making police report tell them Joe took it to repair and stole it. It is probly to late but at least sign a release of liability so you wont be sued later and go home have a beer and get on with it!! Hard lesson to learn!! If it makes you feel any better I did almost the same thing lost $5000 and was sick about it. Time heals all wounds. Make sure the title to the car you gave and he gave back and couldnt find the title to is in your name and he didnt have it put in his. Stay away from JOE!!!




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