Can a Dealer Sell a Vehicle if the Original Purchaser Never Pays for It or Takes Possession of It?

The short answer is yes. If you don't pay for a vehicle, you don't own it. The dealer isn't going to transfer the ownership until they have the payment in hand, even if they hold the title. The story of a vehicle impoundment gives insight into the complexity of dealing with such situations.

A Personal Account of Vehicle Misadventure

A little over five years ago, my current wife and I bought my son a 1996 Volvo 850R as his first car. This was a great vehicle, well-known for its reliability, safety, and decent gas mileage. However, the car lacked interior space.

My son, who stands at 6'2", and I, who am slightly over six feet, found the back seats unusable for anyone significantly taller than a toddler. Despite these limitations, the car performed well.

After about a year, he found a 1994 Volvo 940, which offered more space and similar insurance. He sold the 850R and purchased the older car using cash and the title. He never changed the registration, inadvertently leading to a series of unforeseen legal and financial complications.

A State of Oklahoma’s Impounding Decision

One Saturday, my ex-wife received a notice that the car had been impounded. In the eyes of the state of Oklahoma, we are still considered the legal owners of the vehicle, despite it not being in our possession for over a year. This revelation brought us to face several unexpected challenges.

The costs of reclaiming the vehicle include the impoundment fee, which is around $400, and the cost of acquiring a new key, which would add another $200. The engine of the vehicle, especially in the context of Volvos, is worth a significant amount. Additionally, the car's stereo system was upgraded with a pricey sound system.

The Saga of Unpaid Tolls and Lost Title

We started the process of filing a claim for a lost title, only to discover a hold on the registration because there were several hundred dollars in unpaid toll fees. This added another layer of complexity to the situation, as we had to address these outstanding costs to proceed.

The narrative takes an unexpected twist when the Volvo mechanic who buys and sells vehicles joined us. His insight and experience with similar cases provided a practical approach to resolving the issue. He suggested that we might need to settle the toll fees, regain title ownership, and ensure all paperwork is in order before reclaiming the vehicle.

Strategies to Avoid Similar Situations

To avoid such complications, potential buyers should ensure they complete all necessary steps during the purchase process, including:

Clear payment of the vehicle's purchase price. Proper title transfer and updating of registration. Settling any outstanding fines or fees before the vehicle is sold.

By taking these steps, you can avoid the stress and financial burden associated with impounded vehicles and outstanding toll fees.

Conclusion

The story of my son's 1996 Volvo 850R provides a chilling reminder of the importance of understanding vehicle ownership and legal procedures. While a dealer can indeed sell a vehicle even if the original purchaser never pays for it or takes possession, such actions can lead to complex legal and financial issues. It's crucial to ensure all paperwork is in order and that any outstanding obligations, such as toll fees, are settled.