Purchasing a vehicle, whether new or used, requires a sizable investment for the average citizen. For many of us, a reliable vehicle is seen as a necessity and as such, we may be compelled to make such an investment, even though it may leave us in financial strain. As we are already making the decision to part with a lump sum of our hard-earned money, we should ensure it is a good investment and not one that may be more costly a few months down the road.
The concerns associated with purchasing a used vehicle would not be the same as with a new vehicle. People purchasing directly from the dealership can rest assured that any vehicle they are driving out of the showroom is properly registered in their name and would not have signs of tampering or fraud. This does not mean new vehicles are free from defects. There have been some cases where people purchased new vehicles which contained mechanical or electrical defects. Depending on the dealership, these issues would be quickly addressed, whereas, in some instances, people opted to take legal action against the dealership.
When purchasing a used vehicle, adopting a more prudent approach is recommended, as there are more difficulties associated with this type of purchase. It is important to remember that people may not necessarily be upfront or truthful in answering questions. As such, be prepared to do your own investigations. The starting point may well be the registration documents for the vehicle. There is a new trend where people, in rushing to make a purchase, fail to consider whether the vehicle can be properly transferred. They usually fall prey to experienced sales people who convince them that they already have several offers, so that the vehicle may not be available for much longer. People, in their haste, end up purchasing vehicles registered in the name of deceased individuals, or third parties, or the original owners, although the vehicle had changed ownership several times. The salesperson may also convince you that all the documents are ready and can be easily transferred.
Transferring from a deceased person’s estate usually means having the benefit of a Letter of Administration or Grant of Probate. These documents are not secured in short periods of time, so if one is not available, walk away from the purchase. A vehicle in a deceased person’s estate means that at a certain point, the insurance company will refuse coverage and an upcoming inspection of the vehicle may not be possible. In the event of accidents, actions will involve the deceased’s estate, which means access to insurance money will be compromised.
In instances where the vehicle is registered in the name of a third party, it may be important to have discussions with the third party and ensure they are also part of the sale and sale agreement. A party that is not part of an agreement cannot be bound to the terms. Imagine purchasing a vehicle from A, while the vehicle is registered to B. Upon paying A and seeking to set a date or time for transfer, B refuses to attend or sign any document. Now, I appreciate the many people who believe this is common sense and they don’t need to be lectured about such matters. Yet, there were several matters during the early days of this year, which, sadly, remind me that not everyone enters into arrangements in the same manner and not everyone is capable of easily spotting red flags. Remember, when in doubt, there are searches that can be done on vehicles to determine whose name is on the certified copies.
Ownership is not the only concern. There is a new trend gaining momentum. The sale of vehicles that have been tampered with. When purchasing a used vehicle, it might be beneficial to have it taken for inspection or even transfer while preparing to exchange the sale price. Recently, the inspection of vehicles has revealed that there are issues with chassis and engine numbers, or other tampering, which may result in vehicles being seized for forensic investigation. There are people who have been selling vehicles which have been tampered with, or, they know cannot be transferred and then refusing to return the sale price. In instances like this, you can consider legal action. But, in being practical, we must now consider the cost of legal action (all of which may not be recoverable in court), the time it will take to resolve the issue in court and the fact that you will be out of pocket and in possession of a vehicle you cannot drive. At the end of the day, it pays to be more prudent.
Of course, there is always the need to have the vehicle inspected by a mechanic, performing a test drive and ensuring the vehicle is functioning as it should. But these are not the only factors. I have only sought to raise issues that people are less concerned with but there are several others that should be considered in making these purchases.
Pavitra Ramharack is head of chambers at Pavitra Ramharack Attorneys at Law and can be reached at ramharack_pavitra@outlook.com
