What if i bought a car which is still under finance (not my name)? Can I resell it?

I bought a car from someone. He didn't tell me about the car is under finance . I have successfully registered the car with RTA under my name and now I'd like to resell it, here is a few questions:





1. Do I have to notify the bank? But I just bought the car from trading post, I have lost the contact of previous owner.





2. What will happen if the previous owner not paying the installment?





3. Will the car be towed because the ex-owner not paying the finance?





P.S. I found it under finance because I tried to sell it to dealer and they told me so.





THANK YOU FOR ANSWERING!!

What if i bought a car which is still under finance (not my name)? Can I resell it?
This is a sticky one! Usually if a car is under finance it cannot be sold without the loan being paid out. I'm wondering if the previous owner paid it out after you bought it, if not I suggest you contact a solicitor and just ask where you stand as the man you purchased the car from has broken the law and perhaps there is a way around it but a solicitor will be able to tell you that and if so how it can be done. You can ring some solicitors for free advice. Good luck, I really hope you can sort it out!
Reply:I do not quite understand what you said, but basically you just changed the name on the title but the bank still has the LIEN. In other words, you could not sell the car cause officially the bank has LEGAL possession of the car. The person who sold it to you without notifying the bank "RIPPED" you off. What would happen is that you would have to pay off the loan to legally take possession of the car title.





You will have to notify bank. What would happen is that you got screwed. Tne bank would have the owner's info. Hopefully, there is not too much left to pay on the car to make it worth your while.





Next time, you can get the VIN number and check for a clear title. If you paid by check, maybe you can file a suit or something. You would have to talk to a lawyer about that.





Also remember, if you decide to pay the car off, FIND OUT who will be the title holder. Cause if you pay on it, it would be bad for you to go to the legality of having to find the guy to sign the title over. He could just come and repossess "his car" and leave you up the creek.
Reply:When you buy a car, one of the things you get is the title paper, with the seller's signature releasing his interest in the car. The title will show the seller as registered owner, and the bank as legal owner. The first thing you do is to talk to the bank, find out what the loan terms and current balance are, whether the loan is current, and whether they are okay on your assuming it -- and you do this before you give the seller any money. Now, you are on the hook for the original loan, which may cost you thousands of dollars to pay off. Talk to the DMV to find the seller, and the bank to see what can be done to clean up this mess. You can not legally sell the car without a valid title, and you do not have one.
Reply:You need to look at the title.The financial institutions name will be listed on that title for the car.If the title does in fact have a banks name in the leinholders section then the car is not legally yours.You must obtain a title for your car before you can assume anything
Reply:The bank still holds the title to the car. You do not own the car. If the previous owner did not pay off the bank when he sold you the car then he is guilty of fraud. You should have demanded the title when you purchased the car.





At this point I think you should go to the local sheriff's office and tell him your situation. I am surprised that you were able to register the car in your name without proof of ownership.





The only way you could possibly sell the car at this point is to pay off the bank and get the title in your name, however, you should have the previous owner to sign the title over to you.
Reply:You need proper paper work showing you bought the car and have it insured. You should have done the deal with the finance co to start with. You should get an attorney and still be prepared to lose the car.