Legal Question in Consumer Law in California

bad motorcycle purchase contract

I ordered a custom built motorcycle, and used a finance company check to finance the purchase. I never took possesion of the bike, although the motorcycle builder used the check by putting a fake vin number on the check to make it valid, the check was not supposed to be used until the bike was ready to be delivered, after roughly nine no show deliveries, I cancelled the deal and demanded the finance companies money back, to no avail, they promised to pay on several occassions and never paid, I have a default judgement against the builder, however they have gone out of business. Is there a way to get out of the purchase contract since I never took possession and have never benefited from the finance companies money, I have been making $400.00 per month monthly payment for the last two years, and have three more years on the contract at $400.00 per month. If I decided to refuse to pay the monthly payment, they would have to repossess nothing since the bike and money are no where to be found......

What advice if any is available, Is their a law that states that since I have never took possession of the bike, and the transaction was fraudulent from the beginning.


Asked on 3/24/04, 6:59 pm

2 Answers from Attorneys
Alvin Tenner Law Office of Alvin G. Tenner

Re: bad motorcycle purchase contract

Hoffman gave the best advice

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Answered on 3/26/04, 10:07 am
Roy Hoffman Law Offices of Roy A. Hoffman

Re: bad motorcycle purchase contract

Unfortunately no. Since you signed the contract and received the check, you are "on the hook" to repay the loan. Whether you took delivery of the bike is of no concern to the finance company, since they loaned you the money, and the check was cashed. Your sole remedy is against the builder of the bike.

While there may not be anything to "repossess," if you stop making payments to the finance company they will, no doubt, file a lawsuit against you to collect the money. You should immediately begin collection efforts on your judgment against the builder. Even if they are "out of business," you may still be able to collect your judgment from the individuals who owned and operated the business.

You might want to seek the assistance of an attorney in your area to determine whether it would be worth pursuing your judgment against the owners of the builder. Keep in mind that judgments in California accrue interest at the simple rate of 10% per annum from date of entry of judgment until the judgment is paid. Further, judgments are valid for 10 years, and may be renewed for additional periods of 10 years for an indefinite period of time.

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Answered on 3/25/04, 2:28 pm


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