A tenant staying at my friend's house had a rude awakening this morning when her car was towed away by a car repossessor. She had just bought a second hand car from a used car dealer. Mine you, it wasn't even from a private individual. Apparently she paid for the car in full, but the used car dealer did not settle the outstanding amount with the bank. The dealer folded up the business soon after the sale and the poor girl is now in a quandary.
The lesson here is: always do a check with VicRoads before handing over your money if you are buying a used vehicle, even if the dealership looks big and established. VicRoads provides such a service. For a small fee, VicRoads will tell you if the vehicle is still under any finance.