CAR PURCHASE GONE WRONG.

So $11k tied up in a car sitting in a shed somewhere that you can't use. Cracking idea

My advice to your friend.
The horse has bolted now.There is a security over the car. NZ law says there is a security over the car and its his responsibility to do due diligence. So he can either hand the car back or try to sort out the debt.
Unfortunatenly the car does NOT belong to him it belongs to the finance company.
So he NEEDS to contact the finance company and make arrangements to take over the loan.The finance company want their money so an arrangement to pay takes the heat off.
Please understand HOW they approach the finance company is important. Be polite and helpful. They do NOT have to help him in any way.
THEN the seller needs to be taken to DT to recover the money owing.
Im sorry its a sour pill but at least it will be a 20k car not a lost 11k

Re Register, new plates = same old paper trail, solves absolutely nothing it all traces back to the original chassis or VIN, as SuperNova said 'Total waste of time'.
Go to the PPSR and see exactly what is registered, the exact details, who holds the security and who is the security registered against. Pretty simple really, then you know who to talk to and who to chase. Sometimes the security can be a little vague as to specifics which sometimes gives some 'wriggle room'

^This. (Kaz)

Bottom line- there is no easy way out of this, and your friend is about to learn a very, very expensive lesson about why it is absolutely CRUCIAL to do a PPSR check (MotorCheck, MotorWeb, CarJam etc) on a vehicle BEFOR you hand over the cash to a private vendor.

One of my sidelines is valuation and disposal consultancy to a major finance company and their national asset manager on motor vehicles.

Trust me on this- they will find the car. And all this nonsense of "hide the car, change the ownership, sell it to your granny" etc is doing nothing but (a) delaying the inevitable and (b) making the inevitable a whole lot worse.

The company has agents picking up vehicles up to five YEARS after a repossession order was given.

Your friend has been grossly negligent, and although the recipient of someone else's misdeeds, is now the recipient of someone else's property. Leaving aside the criminal intent, it's not a lot different to buying a flatscreen off the man at the pub- YOU may not have stolen it, but it's someone elses nonetheless, and the man at the pub was not entitled to sell it to you. Is it now your TV? No.

Each company is different, but as Kaz said, it is important that your friend now deals with the finance company in question with integrity and honesty. Depending on the vehicle and the recovery value, SOME financiers MAY choose (if the case stacks up) to re-finance your friend for a portion of the outstanding value. Be aware that the value (the recovery value) is determined by the finance company, not you. And that recovery teams are specialised in smelling a rat, and won't hesitate to make a "field call" if they think the condition (or lack of) is being exaggerated. Bottom line- deal with it now and it may be a better outcome than a hostile repossession down the track. Remember- nothing your friend can say or do will alter the fact it is NOT theirs to have possession of.

All this is, of course, assuming that the financier placed a registered security on the motor vehicle prior to the sale to you taking place. In 99.9% of the time this is the case- but your friend at least has the right to see copies of the documentation before surrendering the vehicle.

And remember- again- it is NOT the right of your friend to demand a repayment plan. That decision rests solely upon the finance company and the goodwill they are willing to extend. Act like an asshat, and that chance is a 100% NO.

Be thankful- we had to deal with an $80,000 BMW X5 a few years back, "sold to a friend" for around $35,000. oops!

Better sitting in a shed than not having it all. The finance company will sell the car if no one pays the dept. Can't use a car that you don't have.

Double This.

Much of the "advice" you see here is based on ill-informed rumour. The only chance of getting out of this with any coin is to talk nicely to the finance company, then go to the Disputes Tribunal. This will give you the best possible outcome for the victim in the shortest possible time.

Not quite, while the car may be sitting in a shed, the victim could end up sitting in a cell following conviction for car conversion.

So what's the endgame? Hope the finance company gives up on the debt and walks away? Right now there's a chance to negotiate with them and maybe take over the debt, might mean paying $19k for an $11k car, and you may be able to recover some of that from the seller. Good luck in negotiating anything with the finance company if they think your hiding the car

If i remember correctly you can check finance owing in about 30 seconds, for a $1.50 cost? Text the licence plate to FIND (3463). Such a simple step that could have saved a lot of hassle.

This is the advise you should take note of OP

So to reference my post above, you'd "hide" the flatscreen TV bought at the pub after finding out it's stolen, even though you know it belongs to someone else?

The difference is the car is not stolen, unlike your TV. It's the difference between a civil and a criminal matter. The police only get involved in criminal matters and it's up the people in civil matters to sort it out as the police won't get involved.

Really? Then why do finance company directors get prosecuted by the police for simply giving investors misleading information?

Go to law school and you will find your answer.In short here is the answer This offence, in short, is committed by a person who uses a forged document (false document) to obtain a financial advantage or disadvantage. That has nothing to do with selling a car with money owning or buying a stolen TV.

No difference, in the case of the TV and the car, neither belongs to the person doing the selling. Ownership of the car does not pass to the registered person until the finance company debt is completely cleared.

I would have thought misrepresentation was present in both cases; misrepresenting the security of an investment, and misrepresenting that the person selling the car was entitled to sell it. But then, I guess that's why the expression "the law is an ass" came about.

It is, what it is.

There is a big difference. The car was owned by the person selling it. The fact was the financial company has a financial interests in it has nothing to do with him selling it which he can legally do and has done. The finance company never owned the car. All they have is a financial interest in it.

This might explain it better.
"If a finance company lends money to someone to buy a vehicle, the lender can register a security interest over the vehicle on the Personal Property Securities Register (PPSR). This means that the lender has rights over the vehicle.".
It does not mean the finance company owns the vehicle.

Regardless of who " owns "it the car is security for a loan so repo man can & will take it anytime anywhere & return it to finance co unless payment of outstanding monies are paid or arrangements made to pay it . Best to hide it & go & see previous owner with a couple wide boys & get the money . Lesson learnt ?

Hide the car for a while.

finace comnpanys are thugs , screwing over thugs is not a bad thing to do, especially if they are theiving thugs like they are.

11k I think :)