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This can make purchasing the car a little trickier, but not impossible.
Heres what you’re gonna wanna know.
What Does It Mean When a Car Has a Lien?
A lien means that there is a legal claim on the vehicle.
Can You Buy a Car with a Lien?
Check the Vehicles Lien Status
Ask the seller for the title and loan payoff details.
When you see the payoff details, take note of the amount of the payoff.
Use your states DMV website or a vehicle history report to check for liens.
This will provide information on any liens the seller may not disclose.
Work With the Lender
get in touch with the sellers lender to verify the payoff amount and process.
double-check you understand what the lender expects to release the lien.
Arrange for the lien to be paid directly as part of the transaction.
Avoid paying the seller directly unless the lien is cleared beforehand.
Ensure the title is transferred in your name only after the lien is paid.
Be sure to watch out for these.
There could be a delay in transferring the title of the vehicle until the lien is satisfied.
Check with your state DMV, as this time limit can vary.
The seller may owe more on the car than they said they did.
Never buy a car from someone who insists they will pay the lien after they get your money.
confirm your purchase payment pays the lienholder directly.
They are outlined in the table below.
Here are some tips.
Here are some alternatives.
Final Thoughts: Is Buying a Car with a Lien Worth It?
If youre not sure about buying a car with a lien, consider other options.
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