NSW Bought Used Car on Gumtree with Undisclosed Car Loan - Sue?

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motorcycleman

Member
4 August 2015
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0
1
Bought a used car ($10k) from a guy off gumtree.

I asked him if it had car finance on it. Seller said it was paid off. Later it was found out money was still owing on it (around $4000). I failed to do a PPSR check.

Do I have any legal ground to sue him if he is uncooperative in giving me a refund?

I'm not sure where I stand. Most websites say I have no guarantee to title if I didn't do PPSR but this link http://www.consumerlaw.gov.au/conte...loads/industry_guides/motor_vehicle_sales.pdf says I do as he did not disclose the security at time of purchase.
 

Tim W

Lawyer
LawConnect (LawTap) Verified
28 April 2014
4,913
820
2,894
Sydney

Tim W

Lawyer
LawConnect (LawTap) Verified
28 April 2014
4,913
820
2,894
Sydney
The equity stuff (bona fide purchaser for value) is probably not available to you,
because you didn't do the checks you could and should have done,
and so you probably don't meet the "clean hands" thing.

Grounds to sue him? Possibly.
It's possible that the contract is void for being fraudulently entered into.
The logical follow on from that is that he therefore has no reason to have your money.

That thing about "buyer beware" (lawyer term - caveat emptor) doesn't operate
if the effect of it is to enable fraud on one party by another.

Maybe see a solicitor and ask about your prospects of success in a Small Claims action in the Local Court.

If you are someone who could, then you might even be able to DIY it.
Debt - small claims