Buy a Car with a Lien on It

Buy a Car with a Lien on It

Buy a Car with a Lien on It : Multi-thousand tips to make your life easier.

Liens may be applied to all sorts of property, including cars. Many people prefer to finance and pay for the cars they buy themselves, but you can also choose a car that comes with a lien. Here are some steps to follow to easily purchase cars with liens.

• Identify. First, understand who actually holds the lien on the car you plan to buy. Usually, the lien holder is recorded in the car dealership's accounting and file books. Simply ask the car dealer who the lien owner is. When dealing with car dealerships, you will usually be referred to companies that act as lien owners. These companies usually make a business out of liens. Make sure the car dealer can show you documentation and other proof of the lien holder's identity.
• Ownership transfer. Once you have determined the lien holder, find out what you need for the lien to be transferred to you. The ownership transfer can usually be determined by talking to the lien holder. Most lien holders will be willing to give you ownership of the car if you pay up front in cash. If you will be paying in installments, however, the procedure can be a bit more complicated.
• Payment. Because the car has a lien on it, payment is usually made to two parties. The first party you need to pay off is the car lien holder. The lien holder will tell you how much the loan for the car is, which will be the lien you must pay. Next, you will also need to pay the dealership where you purchased the car. You only need to pay the remainder of the balance to the dealership. If you are not able to pay for the car in one session, you will need to talk to the lien holder so payment options can be discussed.
• Registration. One of the biggest hurdles when purchasing cars that have liens is registration. Because the lien holder will still need to process the change of title and registration from their company to you, you will need to wait a while for the registration and title. This can take anywhere from a couple of days to a couple of weeks. While waiting, the lien holder should provide you with the sales bill containing information about the lien holder, which you can use to identify ownership of your car.
• Safety. Whenever purchasing items as expensive as cars, always look for supporting documents, and make sure you receive a payment receipt after paying the amounts due.

With these steps, you should be able to acquire a new car - even if it comes with a lien.