Buying a used vehicle with a "lease" on title.

[revelations]

Has any one come across this? I went to register an old truck (2001) and the lease showed up in the registry info.

The clerk made no mention of it. Leasee is Ford of Canada. Is it worth getting it removed? I will likely keep the truck for 10+ years.

Previous owner had the vehicle for 4 years and paid cash for it. Says he had no issues with the lease on the title.

***EDIT - Carproof was done on the vehicle prior to purchase which showed no leases or liens. ****

[Traffic_Cop]

If it says lease on the title then their is most likely a lien on the vehicle. If its not your bank then yes i would be extremley concerned.

[schocker]

It happens I guess. I paid cash for my car from the acura dealer and it has honda finance canada on my registration slip. I need to contact honda finance to remove this but have not got around to it.

[Traffic_Cop]

Originally posted by schocker
It happens I guess. I paid cash for my car from the acura dealer and it has honda finance canada on my registration slip. I need to contact honda finance to remove this but have not got around to it.

Are you sure the liens been paid?

[schocker]

Originally posted by Traffic_Cop
Are you sure the liens been paid?
Yup. Car was 3 year old CPO so I believe a lease return as they had a bunch of 2011 for sale at the same time. Dealer verified but they thought the registry could remove it but it is the finance company that has to remove it.

[Traffic_Cop]

Originally posted by schocker

Yup. Car was 3 year old CPO so I believe a lease return as they had a bunch of 2011 for sale at the same time. Dealer verified but they thought the registry could remove it but it is the finance company that has to remove it.

Heres my top tip of the day before a new thread entitled "help my car was repo'd but i paid cash for it" starts.

NEVER EVER, purchase a vehicle where it shows leased or lien holder on the registration. Dealers and sellers will tell you all sorts of things to make a sale. The fact is, if that leasor and/or finance company is on that title they can take it from you, regardless of your purchase history. Especially in this economy people are selling their leased vehicles for quick cash and are not paying off the finance company. A person purchases in good faith then looses their vehicle not to mention the dollars they spent on the vehicle.

You have been warned!

[lint]

Originally posted by Traffic_Cop


Heres my top tip of the day before a new thread entitled "help my car was repo'd but i paid cash for it" starts.

NEVER EVER, purchase a vehicle where it shows leased or lien holder on the registration. Dealers and sellers will tell you all sorts of things to make a sale. The fact is, if that leasor and/or finance company is on that title they can take it from you, regardless of your purchase history. Especially in this economy people are selling their leased vehicles for quick cash and are not paying off the finance company. A person purchases in good faith then looses their vehicle not to mention the dollars they spent on the vehicle.

You have been warned!

When I went to renew my registration this year I forgot my paperwork where I paid off my car. The registry office said that old lien holder would have to stay on the registration, but there wouldn't be a problem if I had the bill of sale for a new owner

[lilmira]

What shows on the registration may not be very important as long as the lien is removed on the system. There can be lien on the car even though it shows nothing on the registration.

Come to think about it, last time I bought my leased car out, I took the bill of sale to the registry myself. I don't know if it's normal or not for the lessor to remove the lien after the transaction.

[Traffic_Cop]

Originally posted by lilmira
What shows on the registration may not be very important as long as the lien is removed on the system. There can be lien on the car even though it shows nothing on the registration.

Come to think about it, last time I bought my leased car out, I took the bill of sale to the registry myself. I don't know if it's normal or not for the lessor to remove the lien after the transaction.

They usually do because its part of the contract and theirs fees involved. Thats why personally i wouldnt touch it until its removed.

[corsvette]

I've come across this COUNTLESS times in the heavy truck industry (automotive as well) Simply call the leaseholder and ask them for a letter of release. That is if it bothers you enough to say "leased vehicle" on the regi card. If the lien search comes up OK then there is NO lien on the vehicle, even with the "leased vehicle" declaration.

Here's a tricky one I encountered. Sold a truck (kenworth tractor) Guy's Wife call's a few days later all concerned about the vehicle coming up with a leasing co name on the registration. I told her I'd look after it as I've seen this many times. Problem here was the leasing company was no longer in business. The only way to get rid of that name on the registration is by a letter of release from THAT company. I called up transport Canada and was told since there are 100's of small leasing companys coming and going that this was fairly common. They told me after 10yrs the "leased vehicle" will be removed. In that case there was nothing I could do for the Customer. She wanted to look into it herself, and I never did hear anything back from them. They bought another truck from us a few years later and He said nothing ever came of it.

Call up any Ford dealer and talk to the lease dept. They should be able to pull up the original selling dealer, that dealer will get you a letter of release. I've done this plenty of times with Ford.

[revelations]

Thanks guys - talked to others as well about this. Seems that in this case is isnt a huge deal.

[schocker]

Originally posted by Traffic_Cop
Heres my top tip of the day before a new thread entitled "help my car was repo'd but i paid cash for it" starts.

NEVER EVER, purchase a vehicle where it shows leased or lien holder on the registration. Dealers and sellers will tell you all sorts of things to make a sale. The fact is, if that leasor and/or finance company is on that title they can take it from you, regardless of your purchase history. Especially in this economy people are selling their leased vehicles for quick cash and are not paying off the finance company. A person purchases in good faith then looses their vehicle not to mention the dollars they spent on the vehicle.

You have been warned!
Would a dealer not verify the car was paid off especially an actual franchise dealership? Anyways, honda finance is mailing me a letter for next time I go to the registry since the vehicle was paid off years ago.

[jampack]

Lien records sometimes don't get removed for some reason despite being fully paid. It does make buyers worry but most of the time, it's just a matter of having the lien be released from the bank where the record is pertaining to.

[revelations]

LEASE =/= LIEN

[Team_Mclaren]

If you purchased the vehicle from a dealer, its their responsibility to pay off any previous lien associated with the vehicle afaik. All you need to do is contact Ford Canada and they'll issue you a letter for lien release, its pretty common

[revelations]

^ Yea thanks for that.

Forgot to mention in first post (in case anyone else searches this) that a lease WILL NOT show up on a Carproof report.

[kaput]

.

[revelations]

CP has a 5000$ guarantee against liens (or less if market value of vehicle is low) - wonder if anyone has actually used it.