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Dealer sold car that had a lien from previous bank

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Junior Member
New Jersey. A month ago a Nissan dealer sold a used car that had a lien from the previous owner (Chase Bank). When buying the car my financing bank was Sovereign Bank. The dealer didnt let me know of any lien, and yesterday morning i wake up and the car was gone from my driveway. Is it legal for a dealer to sell a car with a lien? I work for Navy and i couldnt get into the base with temp expired so i went through 2 weeks of hell. When i asked the dealer for a temp. they said it was illegal for them to assign a new temp, even after explaining my situation to them. They kept telling me DMV was taking time in issuing my plates/registration because its a used vehicle. What can i claim for? i want to hit them where it hurts for making me go through 2 weeks of hell and not telling me the truth. My car is gone/ my down payment they still have/ First loan payment is due June 22. Please help. Thanks so much



Senior Member
KunalP said:
Is it legal for a dealer to sell a car with a lien?
Legal??? Probably. I can't find any STATUTE that would prohibit it.
However, it is very likely a VIOLATION of civil (contract) law to transfer property with an existing encumberance on it without letting the buyer know.

What can i claim for?
You can 'claim' your ACTUAL damages.... that being the amount you paid on the vehicle and to release you from any further obligation.
You really REALLY need to get the lender involved in this as they are certainly going to come after SOMEONE to reimburse them for the money that they already paid to the dealer... whether it be the dealer or you.
Also, you need to contact your state agency that licenses automobile dealers.

All new and used car dealers, leasing companies and Auto Body Repair facilities must be licensed. Applications for license are submitted to the Dealer's Unit, Business License Compliance Bureau. Dealer plates and registrations are available only from Trenton. New car dealers must be franchised to sell new cars. A special license is required for used car dealers. Application packages include the application form, affidavit, signature card, security check authorization waiver form, and supplemental application form."

Their website: http://www.state.nj.us/mvc/bc_license_page1.html#dealership

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