Sue got her very first good paying job after college and purchased a very expens

Question

Sue got her very first good paying job after college and purchased a very expensive car on credit. A year later, Sue lost her job and was forced to take a lower paying job. During this time, she discovered that the car’s transmission was bad and a repair was necessary. When the car was repaired, the bill was more than $1,250. Sue does not have the money to pay for the car repairs, let alone the monthly car payments. Sue fell behind on her car payment and because she was unable to pay the repair bill, the shop was holding the car in the garage.   They gave her 30 days to make the payment or risk sale of the vehicle to pay for the repair bill.   The finance company went to Sue’s house to repossess the car and found that it wasn’t there.   Sue informed them that it was in the shop and gave the finance company the address.   The credit company and the repair shop are battling over who has priority of repayment. Who has priority and why?

Explanation / Answer

As per Civil Laws prevailing in India and general accepted statement around the globe, that when any item is financed, the ownership of the same remains with finance company till the possesser pays the final Installment.

As per the case stated above, the car is the property of Finance Company till Sue would pays the final Installment and got No objection Certicate for the car. Since, Sue is unable to pay the installments, Finance Company has the right to possess the car and recover its pending Installments/Amount Due. Anything left after recovering Amount Due by Finance Company, will be diverted to pay the Repair Bill.

Result :- Finance Company has the priority over the repair shop to possess the Car to release the Amount Due.

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