read this! Encomberance checks!

[slipperywhenboosting]

I bought a rx7 three years ago and have since rebuilt the car from the ground up, put in a s5 13b turbo, completely overhauled the interoir, 18" mags, custom paint job, custom bodykit and lots of electronics and motor upgrades. Over $15000 was spent.

Two weeks ago i received a letter from savings and loans saying i must surrender the car to them due to an unpaid loan. i didn't understand this because i paid for the car outright. when calling them they told me that a loan was taken out six years ago for the car by a past owner and $5900 was still owing.

After seeking legal aid i was told i could either pay them $5900 or surrender the car. due to financial diffuculty as i am now a uni student and no family member or friend willing to help me out i had to give up the car.

Legal aid asked why didn't i get an encomberance (outstanding loan) check done on the car when i bought it. being ninteen i had no idea such a check could be done.

I have found out now that checks can be done for $10 at any registration department.

If you or anyone you know know is buying a car privatly or through a car yard, get this check done, even if you know the person you are buying the car from.

I will keep every one posted on what happens.

Thanx for taking the time to read this.

[ylwgtr2]

thats real bad news....sorry to hear....people should really check the history of there cars out a bit better these days....not only for this matter but for theft also....i have recently notified the japanese registry board on a number of vehicles that have been imported here by dealers and they are "not right" call me a snitch but when things like this happen to people that are unaware of getting a vehicle checked properly before buying.....hope things work out for you

[xRHETTx]

Sorry to hear about ur bad luck, but i thought everyone knew to do this.

Ie Check that its not stolen and check that there isnt any money owing on it.

Good luck with everything, i hope it doesnt turn out too bad.

[doxximus]

shit i think i will make a link of this thread in the tutorials section also

not good news mate

[Al]

5hit that's farked up! Why isn't the bank going after the guy's other assets to get back the money. Put that farkwit on the streets for not taking care of his responsibility. See a secong opinion from a proper lawer, you may have to pay a little but it could save you from loosing your car.

If it comes down to it, rip out all the mods and replace the motor with a blown one and give it to them.

[AutoTrust]

That is seriously fu(ked man. keep us posted and I hope the asshole that sold it to you get's what's coming to him...

[inark]

thats complete and utter BS! seriously tho... shouldnt there be steps involved in the registration process to stop this sort of thing happening? ie. "is there any money still owing on this verhicle?" if they put down NO when there IS then they should get a big fat night stick shoved up their arse until there stomach juices slowly eat them from the inside out!

please tell me u at least stripped the car to a shell b4 handing it back?

[Guest RedLineGTR]

Everyone Learns From their mistakes, its really hard to do anything now

[(B1) MR_fanny]

sell some of the stuff of the car like the mags and stuff that u can live without......get the amount owing down to a reasonable amount that your friends/family could help you out with. 15k put into a car is too much of an investment for me to just give up like that,

[riggaP]

Sorry to hear. Serious bad luck. Saw it happen a fair bit when I was at vicroads. One case a guy bought a car for $45,000 then found $30,000 was still owing... he, understandably, wasnt happy. Especially after he was told there was nothing owing. He was somehow under the impression that verbal check would be enough.

shouldnt there be steps involved in the registration process to stop this sort of thing happening? ie. "is there any money still owing on this verhicle?" if they put down NO when there IS then they should get a big fat night stick shoved up their arse until there stomach juices slowly eat them from the inside out!

There are steps involved, however it is the responsibility of the buyer to do the check. Vicroads has a Vehicle Securities Register (VSR) which holds information about encomberances on vehicles. Its not the most reliable source tho because there is no law forcing financiers to use this register so it only holds about 85% of all encomberances. Obviously the a verbal check over the phone is not really enough. However, you can purchase a VSR Certificate, which is a legally binding document, that will protect you from any hidden encomberances (i.e. not recorded on the register) for the period that you own the vehicle. Then when the bank comes round and says "give me the car" you show the certificate and can tell em to get stuffed.

If you purchase a car from a LMCT then you are automatically covered. By law, it is the LMCT's responsibility not to sell cars that are under finance.

The certificate will not protect you if the car is stolen or has been rebirthed. I dont know if there is any cover available for this situation.

[WazR32GTSt]

when i bought my car i rang up the mnumber on the bottom of the stamp duty and bvehicle transfer form, and they confirmed that it was not stolen and no money was oweing on the car.

what's the deal now? do you get your car back if you give them the $5900 or can you take the other guy to court?

[SKY031]

Location of this user is SA.

In VIC it's free to get it checked out over the phone, i just had to call the vehicle securities register, and give them the VIN and chassis number, and they looked it up.

Applying for vehicle security information

Applications to Vehicle Security Register (VSR) services will be accepted by mail, fax, telephone and counter service. All requests will only be processed if it complies with the requirements of the Chattels Securities Act 1987 and VicRoads Vehicle Securities Register Business Rules.

Telephone Information Services - 13 11 71

Counter Service

Mail, Fax, Internet

Fax: 03 9854 1811

VSR will fax a copy of the Certificate of registered interest if requested. This will cost $1.00 on top of the standard fee.

[riggaP]

when i bought my car i rang up the mnumber on the bottom of the stamp duty and bvehicle transfer form, and they confirmed that it was not stolen and no money was oweing on the car.

Thats the trap fall into. Just because Vicroads say its clean, doesnt necessarily mean that it is. Thats why they offer the certificates.

Eg you agree to buy a car and agree to pick it up in 3 days time. There is nothing stopping the seller from going down to their local bank and taking out a mortgage on the car before you pick it up. You ring VSR and they say all clean (because there simply hasnt been enough time for the bank to let them know). If you dont have the certificate, you're stuffed. If you do, the seller is stuffed. Unlikely example, but its happened before.

[GTRgeoff]

I just hope you stripped it down to nothing and gave them $5900 worth of car, or they compensate you for the improvements.

[xRHETTx]

Ive got a feeling this guy wont be replying to the messages here, as he posted this message in every state forum. So if you want to give him advice maybe reply in the SA forum?