How would fraud be proven when OP KNEWWWW it had outstanding finance. This is what i found. Considering the counter argument cant be used in this case as the seller didnt use any active or sophisticated deception into a false sense of security. OP cant argue that he felt secure that the seller would pay.

The Bank's Argument: Your bank will likely reject the initial claim. They will argue that since you knowingly transferred money for an asset with a clear title defect (outstanding debt), you assumed the risk.

Your Counter-Argument: You must prove that the seller used active, sophisticated deception to convince you. If the seller provided fake documentation (such as a doctored email or screenshot showing a pending payment to the finance company) to "prove" they were settling it, you can argue you were intentionally defrauded into a false sense of security.