used car contract

[goodpeople]

What is the name of your state (only U.S. law)? CA

Hello,

I just got off the phone with GM, they financed a used vehicle I bought out of state. The dealer sent the title to a random private DMV registration business in CA. They were supposed to send it to my local DMV office instead (this is their policy, I didn't give them the address nor did I ask them to send it. I would have preferred they give it to me to had over to DMV). Anyways, title is now lost since the private business claims they don't have it. Dealer calls me and leaves a recorded voicemail telling me that they are going to report the car stolen.

the other day, i get a letter from GM which states that they are going to repossess the vehicle since they don't have security interest. Here is my question; is this possible. The contract states the following:

On the front of the contract where one signs, it states:
"you give us security interest in the vehicle... you agree to make sure that the title shows our security interest"

on the back it states (shortened for brevity):
Promises:
- I promise to not sell vehicle or transfer interest
- I promise to not abuse car
- I promise to have proper insurance
- I promise to tell you when I move
- I promise to keep car in good order

I default if:
- I don't make payments as agreed
- I lie about info on contract
- i die
- if company, company defaults
- if i go bankrupt
- if I break my promises above

So here is the thing. I just spoke to someone regarding the letter at GM and they told me that its just a blanket letter they send out. When I asked about how they would repossess my vehicle, she told me that they just wanted me to call them.

Anyways, they are getting a replacement title. I wanted to know for the sake of educating myself, whether they can actually repossess my vehicle for this. I know they told me that they are not going to, but the fact that they send letters like this concern me.

thank you

 

[PayrollHRGuy]

the other day, i get a letter from GM which states that they are going to repossess the vehicle since they don't have security interest.

I can't imagine he actually said this. If they have no security interest they can't repo the car. The security interest along with your failure to uphold your side of the contract is what gives them the right to repo it.

 

[Zigner]

You wouldn't ever get the title yourself in the situation you describe. The lienholder would always hold the title. Work closely with the dealer to get this matter resolved.

Have you gone through the process for registering an out-of-state vehicle in California? ( https://www.dmv.ca.gov/portal/dmv/detail/pubs/brochures/howto/htvr09 )

 

[goodpeople]

That's is a good point. Its in bold in the letter stating this. When I asked them about it, they get going around it but still insisted that I am in default.

 

[PayrollHRGuy]

How long ago did you purchase this car?

 

[goodpeople]

You wouldn't ever get the title yourself in the situation you describe. The lienholder would always hold the title. Work closely with the dealer to get this matter resolved.

Have you gone through the process for registering an out-of-state vehicle in California? ( https://www.dmv.ca.gov/portal/dmv/detail/pubs/brochures/howto/htvr09 )

I didn't want the title in the way I think you are referring to. What I was referring to is getting the title so that I can go to DMV and register the vehicle in my name and list them as lien holder. In the past, this is what another dealer did (dealer filled out lien holder info on back of title and also sale info). I merely mentioned that they mailed it themselves to an address of their choosing. Their plan was to send it to "my" local DMV so that I may go there and pay fees and register the vehicle. Instead, they "googled it" and sent it to a private business.

 

[Zigner]

I didn't want the title in the way I think you are referring to. What I was referring to is getting the title so that I can go to DMV and register the vehicle in my name and list them as lien holder. In the past, this is what another dealer did. I merely mentioned that they mailed it themselves to an address of their choosing. Their plan was to send it to "my" local DMV so that I may go there and pay fees and register the vehicle. Instead, they "googled it" and sent it to a private business.

Ok, then tell the dealer they need to fix their mistake.

 

[goodpeople]

How long ago did you purchase this car?

almost 5 months ago

 

[Zigner]

I didn't want the title in the way I think you are referring to. What I was referring to is getting the title so that I can go to DMV and register the vehicle in my name and list them as lien holder.

YOU don't list them as lienholder...they do. Again, this is on the dealer. The dealer should be able to request a duplicate title from their DMV and them move the process along for you.

 

[PayrollHRGuy]

I think I see the problem. You have gone a very long time without registering the car.

How long have you been talking to them about the lost title?

 

[goodpeople]

YOU don't list them as lienholder...they do. Again, this is on the dealer. The dealer should be able to request a duplicate title from their DMV and them move the process along for you.

Well, that's not what they said. They referred me to the front of the contract which states: "you agree to make sure that the title shows our security interest" with "you" referring to me.

 

[goodpeople]

I think I see the problem. You have gone a very long time without registering the car.

How long have you been talking to them about the lost title?

I'm out of state on assignment and haven't driven the car once. It is stored. they were aware that the title was sent to the wrong place. they just told me that the person handling my case has recently passed away. I am working on it. My question remains. Can they repossess my car?

 

[PayrollHRGuy]

That doesn't matter to them at all. They want to know and have a right to expect that the car is registered and insured.

 

[Zigner]

Well, that's not what they said. They referred me to the front of the contract which states: "you agree to make sure that the title shows our security interest" with "you" referring to me.

Your contract seems to have been written by a middle-school student. Perhaps you are paraphrasing?

In any case, you are going to need to work with the dealer to get the title situation corrected.

 

[goodpeople]

I'm not sure if I'm asking this the right way. I understand that they want their security interest. I don't mind if they have the security interest. I am making my payment and upholding the terms on my end. If the dealer takes their time to get a duplicate or whatever, I don't want to risk a repossession. I didn't want this to become a matter as to "why" it hasn't happened. Fact is that it has. I don't have the title neither do they. I presume that the previous owner still has ownership of the vehicle (or maybe the dealer)

Again, based on the contract, can they repossess my vehicle