Selling a car with a lien actually takes place quite often. This is because gone are the days of someone paying off a car loan and keeping it until it simply cannot go any further. Most often people change out cars every 3 years or so, therefore many cars are sold with a lien still attached.
Selling a car with an existing lien means that you will have to take a few extra steps on the sale to be sure that all the paperwork is done properly. By doing the paperwork according to regulations, it will help to protect you and your buyer.
So, what is a lien?
A lien is something that is placed on the vehicle until it is paid in full. The lending institutions do this so that their name remains on the title until the loan is satisfied. Essentially it means that both you and the lender own the car. This gives the bank the ability to reclaim the vehicle should you default on the payments จำนำรถยนต์.
So, if you choose to sell the vehicle before you have completely paid the loan, the loan will have to be satisfied before you can transfer ownership to the new buyer.
Ideally, if the buyer gave you cash, you could simply pay down the loan from the proceeds of the sale, and then pocket the balance, transfer the title and the process would be complete.
However, don’t expect the typical buyer to hand you cash…
Most people will have the concern that if they hand you cash, you will not pay down the loan and the ownership transfer cannot take place, this leaves the new buyer out the cash he gave you.
Paying cash for your vehicle is simply too risky for any potential buyer.
So, here are a couple suggestions on how to go about selling a car with a lien on it…
First and easiest is if you can satisfy the loan before selling the car. Simply pay off the remaining balance and get a lien release from the lender. This lien release will stand as proof to your potential buyer that the loan is paid in full.
Many people do not have these type of funds at their fingertips so if this is true for you, you will want to try the next option.
Next would be to do a pay-off and a transfer at the same time.
Contact the lender and find out how you can satisfy the loan with the proceeds from the sale of your car.
Most often, this will require an appointment with the bank. Then you the seller and your buyer will meet with the lender to complete the paperwork.
Once this is complete, you will want to take the lien release, bill of sale, proof of insurance and the title to the DMV (Department of Motor Vehicles) to do a title transfer. Here you will also pay the sales tax on the vehicle in order to receive your license plates.
Once these steps are complete you can rest assured that everything is handled legally and there is no confusion as to the ownership of your old vehicle.
Selling a car with a lien is very common situation in the car business. Following these few steps will give the buyer and seller peace of mind that everything is done legally; and both parties are protected.