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

Discussion in 'Australian Consumer Law Forum' started by motorcycleman, 5 August 2015.

  1. motorcycleman

    motorcycleman Member

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    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.
     
  2. Tim W

    Tim W Lawyer

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  3. motorcycleman

    motorcycleman Member

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    Hi Tim,

    Would you conclude I have no grounds to sue him?

    I'm referring to a page on this site Faulty Second Hand Car? Your Options as a Buyer - Legal Blog - LawAnswers.com.au

    It says "The private seller cannot lie to you or deliberately or negligently omit important information about the vehicle that is relevant to your decision to purchase the vehicle."

    Would a verbal contract and hand written receipt not be enough?
     
  4. motorcycleman

    motorcycleman Member

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    Also, does the bona fide purchaser come into play if I'm not after the title, just my money back?
     
  5. Tim W

    Tim W Lawyer

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    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
     

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