If you buy a car from a private owner, should you have to pay interest on it if payng interest was never mentioned until you were almost through making payments?
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If you buy a car from a private owner, should you have to pay interest on it if payng interest was never mentioned until you were almost through making payments?
Also, the owner used the vehicle as collateral for house refinance.
Asked on October 26, 2012 under Business Law, Oklahoma
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
No, you would not pay interest unless you had ageed to pay interest: the seller cannot change or add to the terms of sale after the fact. You are only responsible for paying those amounts or charges which you agreed to pay.
If the car was used as collateral and this was not disclosed to your prior to you buying it, you can rescind the transaction (return car; get money back) for fraud (he misrepresented his abiltity to give you title to the car) and/or impossibility (he can't give you clean title if he does not have it). Right now, you don't own the car free and clear; you could lose it if he defaults on his loan; you therefore should probably strongly consider taking legal action to rescind the sale.
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