Upland, CA asked in Consumer Law, Contracts, Civil Litigation and Lemon Law for California

Q: Sold my car to carmax. They sold it. The new owner did a hit and run and it came back to me.

I traded in a fully paid off car went to carmax to trade it for a cheaper vehicle on insurance. I found a cheaper car and even recieve a check back because I still had positive equity balance. Few months, I thought my car was stolen as It was repossessed! I paid the 1300 to get it out. While trying to get answers from carmax. The next month happened again! I couldn't afford to get it out. I lost 16000. And a vehicle. Now a few months ago i was informed I was being sued a hit and run the new owners did in the car I traded to carmax which they obviously title jumped. Also just received a class action letter for a case for that manufacturer of my car worldwide . The car is still in my name so I received that notice. I go into carmax I get all the copys of contact's and the signitures are not mine. There is a loan on the vehicle I traded for which is totally absured. I am being ignored.sent a demand letter to carmax denied I contacted every consumer groups, CA da , dmv,ftc,bbb

3 Lawyer Answers
Scott Richard Kaufman
Scott Richard Kaufman
Answered
  • Consumer Law Lawyer
  • Los Altos, CA
  • Licensed in California

A: Sorry for your issues. You will want to get in touch with a consumer protection attorney immediately for a full evaluation of your circumstances and options going forward.

William John Light
William John Light
Answered
  • Riverside, CA
  • Licensed in California

A: If you are the owner of a vehicle, you are liable for its permissive use, up to $15k/person & $30k/accident for bodily injury. (Vehicle Code section 17150). Your liability for ownership of a vehicle ends once you sign the title and deliver the registration to the purchaser, or you file with DMV a Notice of Transfer and Release of Liability. (Vehicle Code section 5600). It sounds like you would have signed the title and delivered the registration to CarMax, so why you have been sued is unclear.

As for the unknown loan on the car your purchased and was repossessed, you might want to contact the SB County DA's Office Consumer Fraud Division. If someone has composed a loan in your name, without your knowledge or permission, that is fraud, identity theft, etc. Whether CarMax could be liable for that would require a detailed examination of those documents and knowledge of who did it.

William John Light
William John Light
Answered
  • Riverside, CA
  • Licensed in California

A: If you are being sued for a car accident, notify your insurance company. It will sort out whether you are responsible, it will pay for an attorney for you and will pay for any damages for which you are responsible, up to your policy limit, assuming you are covered.

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