Overhaulin'

is it legal to sell a car you have taken a car title loan on and the loan company has the title?

back in the day i had a car took a title loan out on it, the loan company kept the title till i paid the loan but instead the car was sold and then later picked up for non payment, the buyer knew about the loan, was it a legal sale

Public Comments

1. No that was not a legal sale. You broke the law. You cannot sell a car without a clear title.(no lien). ............All liens must be paid before the title is transferred to the new owner and you must furnish a title when you sell a car..........md
2. I have a friend who is in jail now for giving a title loan place the title to a car that had been stripped.No tires.No engine.No seats.No doors.The engine compartment and trunk were being used as a planter box.When he refused to pay on the loan the title loan place sent a tow truck to repo the car.When they saw the car they tow truck guys called the company to let them know what was going on.My friend was taken to small claims court in an effort to recoup the money.My friend filed for bankruptcy in an effort to avoid payment and the title loan place filed criminal charges of fraud against him.He gets out in 2 months after spending 3 years in prison.And he still has to pay back the money from the original loan.You could face similar fraud charges for selling the car without a title.
3. No it wasn't a legal sell. What I did when I sold the Cobalt was I had the buyer go to the bank and pick up the remaining loan. Got me out of the loan so it was written off my name. You are not allowed to sell a car without a title at least I know you can't in Michigan or Indiana.