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Isn't the lienholder responsible?

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my2monkeys

Junior Member
What is the name of your state?What is the name of your state? California
Here's the situation. My neice wrecked her car and was arrested for dui and her car was towed to a tow yard. She had recently bought her car used and it is financed. Through what I now know to be the worst company to ever deal with. She was also driving on a suspended license, which she was not aware of at the time of the accident and her insurance was inactive. I went with her Mother the following day to the tow yard to check out the damage. Lucky for her she only hit a fence along the highway and did not hurt herself or anyone else, but her car was totaled. Trying to be a helpfull Aunt, knowing full well what she had to look forward to in expenses. In order for her to not accrue those daily tow yard storage fees. I offered to have her car towed and stored at my house until the finance company could come get it. Well, her accident was the day before Labor Day and that piece of wreck is still sitting in my driveway. After several calls to the finance company they finally sent out an appraiser. He said that the finance company would be the ones that would be responsible for getting the car off my property and he figured it would be within the next few days. That was weeks ago. Now after both her and I have made numerous calls, just to be hung up on or given the run around. Including by their legal dept. I was finally told that "Well, it's her car. We are not going to come get it." Why, I asked and even told them that I didn't dispute the fact that she still owed them for it. But that they are the legal owners, as the lienholder on the vehicle, that is their car to come get. They said they would not spend the money it would cost to have it towed to their auction yard etc. Again, I asked Why? They could just add those fees onto the amount she owed them. After deducting whatever they might get for it if they sold it at a salvage auction. They said that is not how they do business and they were not coming to get it. DON'T THEY LEGALLY HAVE TO? I even asked them what they would do if, in a case of default on payment, when they would normally repo a car. What would they have the repo man do if he got to a home to repo a car and found that it was wrecked. They answered, that they would advise the repo man to leave it there. That was just a question, in general, not specific to us or our situation, but more as if it where anyone of you out there. Buyer beware of these guys. MY REAL QUESTION NOW IS....HOW TO I LEGALLY GET THIS CAR OUT OF HERE? DO I HAVE ANY RIGHTS TO IT, NOW THAT IT HAS BEEN ON MY PROPERTY FOR THIS LONG. CAN I PUT A LIEN ON IT, LIKE A STORAGE YARD WOULD AND SELL IT MYSELF? I told them that I would drag it out onto the public street and report it abondoned and they would have to deal with that. But, I know that is not legal, so I'm not going to do that. BUT, I AM A RENTER AND HAVE TO GET THAT CAR OUT OF HERE. WHAT DO I DO? PLEASE ADVISE, FAST.
 


teflon_jones

Senior Member
The lien holder has no responsibility to do anything with the wrecked car. It's up to the person taking the loan to dispose of the car.
 

my2monkeys

Junior Member
teflon_jones said:
The lien holder has no responsibility to do anything with the wrecked car. It's up to the person taking the loan to dispose of the car.
The lienholder in this case is the financial institute that gave her the loan. In a case where you don't make your payments to your finance company, they can repo your car. Correct? Well, there really is no difference here. Since the accident she has not made any payments, so why wouldn't they repo it? I was looking at the vehicle/financial/civil codes, which is all very confusing to me, but I believe I even read in there that a lienholder is the "legal owner".
My niece is the registered owner. Can anyone please claify the situation. Now I am even more confused and I just want to get rid of this thing.
 
my2monkeys said:
The lienholder in this case is the financial institute that gave her the loan. In a case where you don't make your payments to your finance company, they can repo your car. Correct? Well, there really is no difference here. Since the accident she has not made any payments, so why wouldn't they repo it? I was looking at the vehicle/financial/civil codes, which is all very confusing to me, but I believe I even read in there that a lienholder is the "legal owner".
My niece is the registered owner. Can anyone please claify the situation. Now I am even more confused and I just want to get rid of this thing.
You've already gotten the correct answer to your question. The lienholder is not responsible to retrieve a wrecked vehicle. What good would it do them to repossess it? They aren't going to recoup any real profit out of it. Your niece should sell it for parts and mitigate her out-of-pocket losses on the vehicle.
 

teflon_jones

Senior Member
Your niece already violated the terms of her contract with the lien holder by not carrying insurance on the vehicle. They can take her to court and demand immediate payment for the remainder of the loan.
 

my2monkeys

Junior Member
InsuranceLadyAZ said:
You've already gotten the correct answer to your question. The lienholder is not responsible to retrieve a wrecked vehicle. What good would it do them to repossess it? They aren't going to recoup any real profit out of it. Your niece should sell it for parts and mitigate her out-of-pocket losses on the vehicle.
Thank you for your response. I still don't understand though. I don't expect them to repossess the vehicle, for non payment. What I thought was that, they would at least come get the car and auction it at on of their salvage auctions. If I hadn't taken the car from the storage yard, wouldn't the storage yard's next step be to contact the lien holder for them to come get their car? If that were the case and the lien holder/finance company chooses to not remove the car from the storage yard. At that point, then the storage yard would then sell it themselves and keep the monies to pay themselves for storing it, correct? Therefore, since I have been storing it, can I part it out or sell it myself? If so, what is the process. How can I, or my niece sell or part out something that we don't legally own? We don't have a pink slip because the finance company is the legal owner. Like I said in my original posting. I don't dispute the fact that she is still legally responsible to pay the car, wrecked or not. As a matter of fact, I think they should demand immediate payment from her. May she would learn her lesson, but in her case, unfortunately, I doubt it. Everything else aside, I just wanted to know...WHAT CAN I DO TO GET IT OUT OF HERE. I do not want to get kicked out of my rental because I have a wrecked vehicle on the property. I honestly thought I was helping and that they, as the lienholders would come get it. That it would really only be sitting here for a week at the most. That clearly is not the case. So, If I can sell it or part it out, I will. I just didn't think I could because I don't have a pink slip to do so. How can a private party sell a vehicle if they don't have a pink? Is there something that the lien holder would have to sign over to me? I have no clue now as what to do. Please advise
 

teflon_jones

Senior Member
my2monkeys said:
Thank you for your response. I still don't understand though. I don't expect them to repossess the vehicle, for non payment. What I thought was that, they would at least come get the car and auction it at on of their salvage auctions.
An insurance company will do this. A lien holder will not. It is not their role.

my2monkeys said:
If I hadn't taken the car from the storage yard, wouldn't the storage yard's next step be to contact the lien holder for them to come get their car?
No, they would have contacted the person the car is registered to.

my2monkeys said:
If that were the case and the lien holder/finance company chooses to not remove the car from the storage yard. At that point, then the storage yard would then sell it themselves and keep the monies to pay themselves for storing it, correct?
They would do this if your niece hadn't retrieved the car.

my2monkeys said:
Therefore, since I have been storing it, can I part it out or sell it myself? If so, what is the process. How can I, or my niece sell or part out something that we don't legally own?
The first step is to pay off the loan and get the title. The next step is to do whatever you want with the car.

my2monkeys said:
How can a private party sell a vehicle if they don't have a pink? Is there something that the lien holder would have to sign over to me? I have no clue now as what to do. Please advise
You can't sell something you don't own.
 

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