Quick Answer: 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 I buy a car with a lien?

The buyer can’t legally drive the car or insure it without the title so that’s where buying a car with a lien gets tricky. To close the deal, the seller has to receive the car’s title from the lien holder in order to sign over ownership, and the buyer needs the signed title to register the car.

Can you sell a car that has a lien on it?

You can sell a car without paying off a lien but the buyer won’t be able to transfer title into their name. You’ll technically still own the car and will still be responsible for the lien. When you sell a car to someone, you need to sign the title over to them and they take that to register the car in their name.

How do you sell a car privately with a lien?

Selling a Car with a Lien

  • Find out how much the vehicle is worth. Don’t trust the assessment of a friend, neighbor or used car dealer.
  • Find out how much you owe.
  • Sell to a dealership.
  • Get a quote from a dealership.
  • Transfer the loan to the buyer.
  • Use an escrow service.
  • Refinance with a local lender.
  • Meet with the buyer and lienholder.

Photo in the article by “Flickr” https://www.flickr.com/photos/internetarchivebookimages/16689948615/