Is it illegal to trade a car that was financed to you?

if someone is financed for a car, then two months later they decide they want to trade it in (in another province) and then they get a new car, register that car to themselves, and stop paying the loan on the car in X province and now this car with a lein on it has been traded to a dealer, who sells it to X......is that against the law here in Canada? Or in the US?





The company that loaned this person the money the car (to finance) is not allowed to do business in Quebec (because of the policy which forbids certain interest rates) yet this lender who is 4,000 kms away in (Alberta) is out their money or their car?





Anyone can help on this scenario for me?
Is it illegal to trade a car that was financed to you?
the finance company has the title you can;t sell or trade it without a title legally
Is it illegal to trade a car that was financed to you?
As stated, you can't trade in a car with a lien on it unless the dealer pays off the lien. Only then could they sell it to someone else.





If such a thing were to happen (unlikely) the original lender would go after you to pay as promised or return the car, and if you couldn't return the car, you'd have no choice but to pay.
Reply:I would imagine that car dealers in Canada have safeguards for that situation. They would probably find out that you have a loan on it. You would not be the first person to try this.


In the US, most states send the title to the leinholder or at least have the their name on the title. They would try to get the release of lein from them and find out about the loan on the vehicle.
Reply:u have to contact dealers for that i think, and lol thnxs for answering my question, and dont worry im doing it more for fun and getting a scholarship but im not a weightlifting person, im not lik a muscley woman haha