CALGARY- Buying a car that isn’t sitting on a lot could save you money, but if you don’t do your homework it can turn into a real problem down a road.
Not only is it important to get a mechanical inspection, but buyers should also check if it’s ever been written off, or if there is a lien against it.
Calgary’s Christine Roque bought a pickup truck, but it was stolen and had to be written off. However, when she went to file an insurance claim she realized there was a lien against it—meaning she wouldn’t get a payout until it cleared.
“Because of the lien it’s not an insurance issue,” Roque explains. “I have to get a release of interest letter from the finance company that there is no interest with this vehicle, but to my surprise that this company no longer existed and then it was the beginning of my wild goose chase.”
Roque had bought the vehicle privately, but it had changed hands several times before and the lien was from the original owner. It took her two months to clear the record.
“It was hard work, it was a lot of phone calls, lot of emails, a lot of back and forth with the insurance company. And in the end, yes, it did pay off.”
She recommends everyone get a vehicle information report before buying privately.
“Even in you know the person that you’re buying it from, still do a lien search because maybe the finance company didn’t remove the lien,” Roque suggests. “The original owner didn’t remove the lien and unfortunately I got stung.”
Vehicle history can be obtained at registries.
“There are three different types of searches we can provide. The lien search, vehicle information report and car proof,” explains registry agent Wesley Neustaeter. “Depending on the vehicle and what you’re looking for, those could help protect you.”
He adds the vehicle information report will list any active liens, how often it has been registered in Alberta and if it’s ever been written off or salvaged.
“I see a lot of value in that, because if there are multiple entries for the same year chances are other people aren’t doing their research and they’re getting rid of the car before they get stuck with it.”
All you need to search for a car’s background is the VIN on the dashboard. It costs around $20.
Click here for more tips on buying a used vehicle: http://www.ama.ab.ca/automotive/buying-a-used-vehicle-checklist
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