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Deadwrong

Dealer sold me a car they don't have the title for.

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Posted (edited)

I purchased a car on Saturday from a used car dealer. I was already pre-approved with Langley Federal and the dealer convinced me that since Langley wouldn't send them payment on Saturday that I could apply with them for "back up financing" so I could drive the car off the lot and they will send over the sales documents to Langley.

 

I receive a call from Langley this morning advising that the only thing they need to close my loan is a front and back copy of the car title. I emailed the finance guy at the dealership and he responds back that they don't have the car title so now I have to accept their financing. I'm in Georgia and I did a quick Google search that seems to indicate that selling a car that you don't have a title to is illegal. What steps should I take at this point?

Edited by Deadwrong

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I think there is some info missing here.

 

The transfer of the title from the previous owner to the dealer may not be complete just yet. Find out more about the status of the title before you assume the worst.

 

I'm assuming you've already signed all of the finance papers and the purchase agreement...

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Posted (edited)

Here's the exact response I received to my email after advising the finance guy Langley was requesting a copy of the title.

 

 

We do not have the title yet because previous owner had a loan that we are paying off. We will need to go with our financing and you can refinance once you get the first bill. It is a simple interest loan with no pre-payment penalty.

 

 

Also I signed 2 financing contracts. One for Langley and one for their backup financing.

Edited by Deadwrong

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We do not have the title yet because previous owner had a loan that we are paying off. We will need to go with our financing and you can refinance once you get the first bill. It is a simple interest loan with no pre-payment penalty.

 

This car lot is on thin ice with their flooring, they need the proceeds from the loan with kickbacks and front-end loading to pay off the loan and get the title. Don't walk, RUN!

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We do not have the title yet because previous owner had a loan that we are paying off. We will need to go with our financing and you can refinance once you get the first bill. It is a simple interest loan with no pre-payment penalty.

 

This car lot is on thin ice with their flooring, they need the proceeds from the loan with kickbacks and front-end loading to pay off the loan and get the title. Don't walk, RUN!

It's definitely not going to be that simple as I paid a $10k down payment to the dealership when I took possession of the car on Saturday.

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We do not have the title yet because previous owner had a loan that we are paying off. We will need to go with our financing and you can refinance once you get the first bill. It is a simple interest loan with no pre-payment penalty.

 

This car lot is on thin ice with their flooring, they need the proceeds from the loan with kickbacks and front-end loading to pay off the loan and get the title. Don't walk, RUN!

 

+1

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We do not have the title yet because previous owner had a loan that we are paying off. We will need to go with our financing and you can refinance once you get the first bill. It is a simple interest loan with no pre-payment penalty.

This car lot is on thin ice with their flooring, they need the proceeds from the loan with kickbacks and front-end loading to pay off the loan and get the title. Don't walk, RUN!

It's definitely not going to be that simple as I paid a $10k down payment to the dealership when I took possession of the car on Saturday.

 

Oooooo!!!! BOHICA!

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IME all the credit union needs is a copy of the application for title showing their lien interest. That's all mine have ever asked for as part of the loan package. And when I accept their draft, that’s all I include in the documents back to them to get paid for the car.

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file a complaint with the State Attorney general

 

Against whom, and what's the basis for the complaint?

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Unless you are trying to get out of the deal, I'd call the credit union and explain the situation if you haven't already. They may only need proof that the title has been applied for. See Marv's response above.

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Georgia is an ELT state. A dealer has a limited amount of time to perfect the lien. So what are you really worried about?

 

Did you have the Langley Draft in hand to pay for the vehicle at the time of purchase? That's as good as cash

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My concern is that Langley pre-approved me at 2.5%. I'm not willing to accept a loan using their financing at a higher percentage because they failed to disclose that they didn't have the title for the car when I signed for it.

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Did you have the Langley draft in hand when you were present at the store?

 

Sent from my SM-N950U using Tapatalk on a beach far far away.

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Well then, you signed a contract to purchase and went on you way. Kinda like going to Kroger to buy a gallon of ice cream, you ain't leaving the store without paying for the ice cream. Essentially no difference in this situation IMO.

 

If you aren't happy just refinance it and be done with it. Problem solved.

 

Sent from my SM-N950U using Tapatalk on a beach far far away.

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This happens, we have sold a car at times when it was not yet paid off either to the flooring company or the previous finance company.

 

It takes extra time in some cases to get these things done properly in order to get the title. 

 

Many lenders do not like this and will only give you so much time to have the validated registration in their name or the loan gets kicked back.

 

Did everything work out in the end?

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