NSW Bought a Car under Car Finance - What to Do?

[Cameron Hall]

Hi,

I bought a car not knowing it was under car finance. Now the finance company are wanting to repossess the car off me.

i paid cash for the car. Can I sue the previous owner for the funds as I am out of pocket?

Thanks

 

[Clancy]

Can you sue the previous owner? Yes, is it worth it? If they are a deadbeat, obviously no.

I do believe that the car cannot be repossessed from private property. So if it's your driveway, garage, or secure parking, they can't take it. Park on the street or in a shopping centre then it's fair game. So all you can reasonably do is just keep using the car as long as you can, it wont affect your personal credit rating. If you have insurance on the car and the car was written off or stolen, your insurance company will pay the finance company before paying you, so just be aware of that.

 

[Rob Legat - SBPL]

The car can be repossessed from private property with permission, or they obtain a court order.

 

[Cameron Hall]

Can you sue the previous owner? Yes, is it worth it? If they are a deadbeat, obviously no.

I do believe that the car cannot be repossessed from private property. So if it's your driveway, garage, or secure parking, they can't take it. Park on the street or in a shopping centre then it's fair game. So all you can reasonably do is just keep using the car as long as you can, it wont affect your personal credit rating. If you have insurance on the car and the car was written off or stolen, your insurance company will pay the finance company before paying you, so just be aware of that.

Thanks very much Clancy

 

[Serge Gorval]

i assume you bought it in NSW ?
did you pay fair value for it ?
did the seller make any representations that the car was not under any encumbrances ?

 

[Tim W]

i assume you bought it in NSW ?
did you pay fair value for it ?
did the seller make any representations that the car was not under any encumbrances ?

On the other hand, did you do a PPSR check on the vehicle yourself?
(I see where you're going, @Serge Gorval, but I'm wondering about truly clean equitable hands...)