Question: Is It Safe To Buy A Car With A Lien??

A lien lasts as long as a car has an outstanding balance on it, so if you purchase a car with a lien on it, you must pay it out in full.

After the balance is paid off, you have to contact the lien holder, who will then clear the title.

Furthermore, the car cannot be bought unless the lien holder gets paid.

Is selling a car with a lien illegal?

It’s not illegal to sell a vehicle with a lien on it, as long as the sale allows you to pay off the loan and transfer the title to the new owner. Remember, if you still owe on a vehicle, the lender owns the car and, in most states, holds the title. Many states make it illegal to sell a vehicle without a title.

What happens if you buy a car with a lien?

Buying a Used Car with an Outstanding Loan

  • Use Your State’s DMV Website to Run a Lien Search.
  • Discuss Results of Your Lien Search with the Seller.
  • Get the Seller to Pay Off the Outstanding Amount.
  • Create an Escrow Account to Manage the Purchase.
  • Pay the Loan Balance Directly to the Lender.
  • Make a Used-Car Purchase That Could Save You Money.

How can I get a lien removed from my car?

To remove a lien, you must send the DMV:

  1. form Application for Duplicate Title (MV-902), checked to show that a lien release is included with the application, and.
  2. the $20 fee for a duplicate title certificate, and.
  3. the original title certificate that shows the lien, and.

Photo in the article by “Flickr” https://www.flickr.com/photos/666_is_money/6036913933