Can a Dealership sell you a car with a lien on it?
I recently purchased a used car from a small dealership in NJ. I bought the car with cash and paid the full amount. They issued me a temporary out of state registration ( I live in PA). I've waited almost 3 months now and have been calling the dealership everyday since the temp registration has expired. They kept telling me everything was fine and that they would be sending the title shortly.
Finally after 2 months of daily calls i have found out that they do not have the title because there is a lien on the car. Now I'm wondering what this means to me and if they were legally able to sell me a car that they did not posses a title for. If not do i have any legal recourse?
The dealership is legally required to provide you with marketable title. They have not. Contact them one more time and inform them that they can either provide you with the title, or they will need to return every penny that you paid, and also need to come and get the car.
If they refuse to do either, you need to file a complaint with the NJ dealer licensing commission
Motor Vehicle Commission
Business Licensing Services Bureau
Dealer Licensing Unit
P.O. Box 171
225 East State Street
Trenton, NJ 08666-0171
You also may want to file suit against the dealer. Do not delay, as NJ only requires a $10,000 bond for dealers, and the claims against that bond are first come first served.
