[tsomer]

The people getting burned are the buyers.

The dealership fails to pay off the remainder of the debt on the trade-in car before selling it to another party.

Then the dealer folds, and the original owner’s lien-holder goes after the purchaser.

This is the reason you research real-estate before buying. Now it looks like you’re going to have to get a lawyer to buy a new car.

[burroak]

Actually, the only thing you need to do is get a lien waiver from the dealership at the time of the deal. That will protect you from kind of thing.

This is just a matter of routine practice in the building trades. Although a contractor has paid his bills completely, if the supplier has not made payment to its supplier; the supplier will track down the final possession of those materials and collect from there. New home buyers should be acutely aware of this fact and get the waivers.

[Larry Lucido]

Now it looks like you’re going to have to get a lawyer to buy a new car.

And the only one who ends up with a new car is the lawyer.