Buying A Seized Car

[Crosswind]

Hi guys, I have my eye on a car which is seized by a finance company and currently in their yard. The company is not a shady business but they are registered with Central Bank and been in business for at least 30 years.

The car appears to be in decent cosmetic and mechanical condition.

Are there any legal implications or potential problems of buying a seized car (I mean problems not related to the vehicle's condition). Are there any precautions the buyer should take?

Anyone who has bought such a car?

[Supra_Natural]

Hi guys, I have my eye on a car which is seized by a finance company and currently in their yard. The company is not a shady business but they are registered with Central Bank and been in business for at least 30 years.

The car appears to be in decent cosmetic and mechanical condition.

Are there any legal implications or potential problems of buying a seized car (I mean problems not related to the vehicle's condition). Are there any precautions the buyer should take?

Anyone who has bought such a car?

As long as the finance company transfers the title over to you with no issues you wont have any problems as far as I'm aware. How long has the car been sitting? if its a very long period you'll have to contend with some rectification work....

[Crosswind]

As long as the finance company transfers the title over to you with no issues you wont have any problems as far as I'm aware. How long has the car been sitting? if its a very long period you'll have to contend with some rectification work....

They showed me the paperwork including the order to seize the car. The car was seized and brought to the yard just 10 days or so ago.

Is there any possibility of the previous owner laying claim to the vehicle? May be through courts or something?

Edited March 16, 2011 by Crosswind

[Simplelife]

They showed me the paperwork including the order to seize the car. The car was seized and brought to the yard just 10 days or so ago.

Is there any possibility of the previous owner laying claim to the vehicle? May be through courts or something?

i dont think so, coz absolute owner of such vehicles are the finance company... afaik

[nexus]

Hi guys, I have my eye on a car which is seized by a finance company and currently in their yard. The company is not a shady business but they are registered with Central Bank and been in business for at least 30 years.

The car appears to be in decent cosmetic and mechanical condition.

Are there any legal implications or potential problems of buying a seized car (I mean problems not related to the vehicle's condition). Are there any precautions the buyer should take?

Anyone who has bought such a car?

i don't think it is a good idea because guy's who seize the car usually group of thugs they can change car's parts when they bring it to the finance company yard so if i was you i be extra careful when buying from finance company.

[jdnet]

You may want to look into exactly why the car was siezed. I was looking at a few cars in one finance companies yard and it turned out that two of them were used to transport kassippu or drugs and they had to fight in court to get cars back from the police. I would be a little worried if the car was used for illegal activities.

[Crosswind]

i don't think it is a good idea because guy's who seize the car usually group of thugs they can change car's parts when they bring it to the finance company yard so if i was you i be extra careful when buying from finance company.

Good point. I checked for that as well. There were some cars which were pretty much hacked (stereo removed, ancient battery, no spare wheel, no tool kit, things out of place in the engine room and so on... those ones showed obvious signs of hacking (though I suspect the owners not the people who seize. The guys who seize have to fill a checklist, which is presented to the customer).

I guess it depends on how professional the finance company is (I am not saying that they are absolutely charming people who have never done any evil). But it's definitely something that needs to be checked. Perhaps I can request an agent's inspection for the car.

On the other hand, if you buy a car from a private buyer, there are still risks arent there? Especially if you are not a car expert?

[nexus]

On the other hand, if you buy a car from a private buyer, there are still risks arent there? Especially if you are not a car expert?

i have a friend who seize cars for finance company you don't want to know what they do to them

i think private buyer dont do such a thing

[Crosswind]

i have a friend who seize cars for finance company you don't want to know what they do to them

i think private buyer dont do such a thing

interesting... anything u like to tell me that will make me reconsider that decision?

Edited March 16, 2011 by Crosswind

[Riz]

Bro, no legal implications or potential problems, as far as i know genereally Banks and Finance Co do not lend for vehicles with disputed title. I have bought vehicles, few things to check.

1) If english no vehicles, chk with the co whether VIC in possession (certain co's do not retain the VIC)

2) Chk whether revenue lic available

3) transfer papers in order

Even if 1) 2) are not available, duplicate could be obtained

Basically thats it, As i'm a bit of an expert in finance/recovery field, answeres for quotes

1) Normally a finance co cannot auction or sell a vehicle which is under a court bond or in police custody

if they do its illegal

2) Previous owner cannot claim title. But vehcile should be seized after terminating the agreement (agreement

terminateion is a matter of forwarding a letter), if the agreement is not termintaed legally a company

cannot repossess. But to my knowledge vehicle owners have never claimed. ..........but person like me will

claim ----------------

3) Of course vehicle seizers replacing / removing parts are very common, so buyers beware when purchsing

[toyota sucks]

1.The thugs

2.The finance company

3.the previous owner

Must have spare keys,

The previous owner might be having ideas to re-repossess the vehicle,

U could be in for a major case of Grand Theft Auto

So if the price is not tooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooo tempting

Go for a normally used vehicle

[nexus]

1.The thugs

2.The finance company

3.the previous owner

Must have spare keys,

The previous owner might be having ideas to re-repossess the vehicle,

U could be in for a major case of Grand Theft Auto

So if the price is not tooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooo tempting

Go for a normally used vehicle

if everyone who get seize they are cars by finance company think like you half of them dead right now

[nexus]

interesting... anything u like to tell me that will make me reconsider that decision?

this is a public form so i can't tell you everything but when you buying a vehicle you can't check everything don't you

[SeanD]

I don't know about thugs seizing vehicles (thought that was only in the movies) but interested to hear more about it?

Anyway, rather than the legal issues (shouldn't be a problem if it's a reputed place), I'd be thinking more along the lines of if the guy couldn't pay his lease agreement, do you think he'd have put the time effort or money to maintain the car?

[nira74]

Personally, I would think twice about taking advantage of someone else's misfortune..

[jdnet]

Personally, I would think twice about taking advantage of someone else's misfortune..

How exactly would you be taking advantage of someones misfortune? The buyer entered into a contract with the finance company and failed to meet his obligations. The finance company would then need to sell the car to recover the money it would otherwise lose. If you don't buy the car, someone else will or it will just be auctioned off and then get resold at a car sale and you wouldn't even know it was siezed.

Oh yeah, and it's not like you are getting these cars at rock bottom prices either. They are generally sold for the market value unless it hits the auction block.

[harshansenadhir]

Personally, I would think twice about taking advantage of someone else's misfortune..

I understand this as I personally heard some people commenting this way, typically the empathic/sympathetic culture we have. Mate, you really should see the attitude and mindset of the majority of defaulters and you yourself will think twice about this very statement. Finance companies just don't jump into it, loot it and sell it by-force at once. It's the last resort taken by the company to recover the cost of funds, part of or full of un-earned income and other charges incurred in the process of re-possession.

Mind you, business is business, it's not sympathetic or well-fare related business these finance companies are into.

Again to the OP, if the car has not been sitting there for a long, and has not used for any illegal activities and even if so, if it doesn't have any pending/outstanding legal proceedings, if all documents are clear and if you can get it lesser than the market value, I don't see any issue in buying it. Be very mindful of the components/parts of the car as it's not seizers but the customer/owner himself with typical defaulter attitude, would've removed parts or damaged the car deliberately.

[Crosswind]

OK - an update on the whole scenario.

The price is pretty much the market price. Maybe slightly less (around 25k or so).

The finance company is quite reputed. They have maintained all paperwork, including the termination letter and order to seize the vehicle. It appears that they have a process laid down for the persons who seize vehicles. I don't know to what extent it is being followed or audited.

Reason for seizing is quoted as the owner defaulting payments for 3 months and not responding to any communications.

@Nira - sorry to say this buddy. You should always spend what you earn. If someone willingly gets a car, knowing very well that they might not be able to keep up with payments, it's not misfortune. It's pure stupidity. Seizing vehicles is an expense for the finance company and a high administrative overhead. They don't want that but they can't really help it.

@harshan

if the car has not been sitting there for a long, - No it hasn't. records show that it has been there for 10 days

and has not used for any illegal activities - I really don't know about this one, but I guess I can make inquiries in the nearest copshed

if it doesn't have any pending/outstanding legal proceedings - same again

if all documents are clear - I think so

and if you can get it lesser than the market value - 25k or so less, probably can come down by another 25k

Be very mindful of the components/parts of the car - the car has a diagnostic system and I am planning to get it checked by the agent. however, I am yet to check the possibility of that with the finance company.

[Schiffer]

Hi guys, I have my eye on a car which is seized by a finance company and currently in their yard. The company is not a shady business but they are registered with Central Bank and been in business for at least 30 years.

The car appears to be in decent cosmetic and mechanical condition.

Are there any legal implications or potential problems of buying a seized car (I mean problems not related to the vehicle's condition). Are there any precautions the buyer should take?

Anyone who has bought such a car?

dont do that mate.. its horrible.. once my dad bought a sunny... there were few bits of the interior and exterior missing.. he thought it will be easy to replace but it wasnt.. for example.. 1 tail light was broken.. it cost around 8000/= bucks to replace it.. and the numbers of the Auto Gear were missing the "PRDN2L" to replace that they told we have to replace the whole gear.. there will be little things like that.. but when you add up its gonna cost you alot mate.. so be carefull..

[Schiffer]

i don't think it is a good idea because guy's who seize the car usually group of thugs they can change car's parts when they bring it to the finance company yard so if i was you i be extra careful when buying from finance company.

exactly... they are thugs and they do change things of the cars.. for example.. like bushes and stuff.. they switch the original once with local chinese or taiwaniese.. which will give you a headache later.. that little things that people dont usually check

[PreseaLover]

When the leasing company seizes a car, do they take a no objection letter from the previous owner? 

[Quiet]

Since the leasing company has the absolute ownership no such letter is required. They will transfer the vehicle under their name and then sell through tender

[PreseaLover]

3 hours ago, Quiet said:

Since the leasing company has the absolute ownership no such letter is required. They will transfer the vehicle under their name and then sell through tender

thanks @Quietdo you know of any auctions happenning in leasing companies lately where i can go and bid? where do i find those auction information? 

[GK_007]

46 minutes ago, PreseaLover said:

thanks @Quietdo you know of any auctions happenning in leasing companies lately where i can go and bid? where do i find those auction information? 

Check on Sunday Newspapers. e.g. Observer 

[HaeylM]

54 minutes ago, PreseaLover said:

thanks @Quietdo you know of any auctions happenning in leasing companies lately where i can go and bid? where do i find those auction information? 

if you are in the market for tenders, look at embassy websites for their tenders too.  You can get a decently maintained good car for a relatively low price and the tenders are not as competitive as for leasing company or govt tender cars.  Just the only compromise would be having to run the car with a blue number plate.