Dealer mistake forgot to put Lienholder on car sale contract

[unlimited3450]

I live in California and recently bought a car (2 months already). I ask my bank for an auto loan base on the sale contract dealer gave me. The problem was on the contract that dealer gave me to take to the bank was the original contract with the name of my mom as the buyer. After the bank accepted the contract, I bring it back the original contract and also the check to buy the car. The check of the bank had my name and my mom on it because I put my name and mom on the borrower section when filled out the auto loan application only. So after I went back to the dealer, he made us cancel the old original contract (with only my mom's name) and make the new contract with my name and my mom as borrower and co-borrower. The thing is, the financial manager did not put my bank in the new contract. That is why I receive my title after 10 days with no lienholder showing.

My first question is: Can the sale contract be cancel if dealer make mistake?
My second question: Can I keep the title and keep paying monthly payment for my bank? Will the bank ask for the title back?
My third question: I just sold the car that I got the title without lienholder even the truth is the bank should be on the title. I bought bigger car since the old one is a sport car with only 2 seats. And I plan to take all the money I just sold to pay for the bank. Will the reposses my new car or force me to get the old car back and put their name as lienholder?

 

[Zigner]

My first question is: Can the sale contract be cancel if dealer make mistake? The question is moot since you've already sold the car.

My second question: Can I keep the title and keep paying monthly payment for my bank? Will the bank ask for the title back? Both questions are moot since you've already sold the car.

My third question: I just sold the car that I got the title without lienholder even the truth is the bank should be on the title. I bought bigger car since the old one is a sport car with only 2 seats. And I plan to take all the money I just sold to pay for the bank. Will the reposses my new car or force me to get the old car back and put their name as lienholder? Once you pay the loan in full, they won't care one iota.

 

[unlimited3450]

The problem is I won't be to pay in full since my car value is lower than the loan amount.

 

[Zigner]

The problem is I won't be to pay in full since my car value is lower than the loan amount.

You're going to be in a world of hurt with the bank...

 

[justalayman]

You have committed a criminal act although although whether it is prosecuted is another story.

A lien is not the mark on your title. That is proof of the lien and put there to prevent the sale of the vehicle until the lein is released. The lien is created by borrowing money specifically to purchase the car.

 

[unlimited3450]

My point is the dealer made a mistake, he didn't put the bank on lienholder until I got my car title. I did not know that I have to pay all the loan to get the title from the bank, this is my first time buy a car with auto loan, I sold the car because I did not know I could not do it without bank's permission. Just today I got my aunt asking where did I got a new car, I told her the story, and she said I cannot do that. This is why I want ask for more information about my situation.

 

[Zigner]

My point is the dealer made a mistake, he didn't put the bank on lienholder until I got my car title. I did not know that I have to pay all the loan to get the title from the bank, this is my first time buy a car with auto loan, I sold the car because I did not know I could not do it without bank's permission. Just today I got my aunt asking where did I got a new car, I told her the story, and she said I cannot do that. This is why I want ask for more information about my situation.

Your aunt is correct.
I would suggest that you take every penny you received when you sold the car and take it to the bank and explain what happened. If you're lucky, they might work with you on converting this to a personal loan of some sort...or they may let you "transfer" the loan and it's accompanying lien to the new vehicle.

 

[LdiJ]

My point is the dealer made a mistake, he didn't put the bank on lienholder until I got my car title. I did not know that I have to pay all the loan to get the title from the bank, this is my first time buy a car with auto loan, I sold the car because I did not know I could not do it without bank's permission. Just today I got my aunt asking where did I got a new car, I told her the story, and she said I cannot do that. This is why I want ask for more information about my situation.

If you want to avoid any potential serious ramifications then you need to find a way to pay the bank, in full, for the loan on the car that you sold. Eventually the bank is going to come looking for the title (sooner rather than later) and when you cannot produce either it, or the car, they are going to come after you with a vengeance.

 

[justalayman]

My point is the dealer made a mistake, he didn't put the bank on lienholder until I got my car title. I did not know that I have to pay all the loan to get the title from the bank, this is my first time buy a car with auto loan, I sold the car because I did not know I could not do it without bank's permission. Just today I got my aunt asking where did I got a new car, I told her the story, and she saids I cannot do that. This is why I want ask for more information about my situation.

the only mistake I see the dealer made was they did not record the lien on the title. That doesn't mean you get to sell the car and keep the loan money to do with as you wish.

You are the one that made the bigger mistake here.