[DeTomaso] FW: More Calif Smog Checks

[Dan Mixon]

>I'm not sure about California but the states I've lived in the tile of the
>car is held by the finance company until the car is paid for.  I maybe
wrong

>but isn't the tile holder the actual owner of the car.

 

No. When you buy a car and finance it, you agree to certain terms (finance
contract). The title is in your name but it is held by the finance company.
The finance company doesn't own the car, you are the owner of the car. The
contract with the finance company gives them certain rights regarding the
car. If you quit paying, they get to come and take the car. They then have
the right to sell the car. If they sell it for less than you owe, you are
still legally required to pay the difference. When you pay off the loan, the
finance company stamps the lien is paid and sends the title to you.

 

In the case of the California rice racers, it wouldn't matter if there is a
lien. The state has the right to take the car from the racer because of
illegal activities involving the car (stolen parts and street racing, maybe
grand theft auto to get the parts). If there is a lien against the car,
that's between the owner and finance company, not the state and the finance
company.