A lien on your car is in place because you financed your car through the bank or finance company and the lender has secured a portion of the loan amount with the value of the vehicle. You cannot sell a vehicle with a lien on it, without the lender's permission. It can, however, be sold as long as the loan is paid off. For example if you still owe $8000.00 on the car, that is what you would need to pay the lender in order to transfer the ownership or title to you or a buyer. Having a lien on your vehicle is quite all right. When you finance a new or used vehicle through the bank or finance company, the debt is secured by placing the lender's name on the car's ownership as a lienholder. This helps buyers secure car loans, since the banks secure the car as collateral until the loan is paid in full. When you no longer owe money on your car, the bank or finance company will remove the lien on the vehicle.
How do I obtain a payout amount?
Contact the bank or finance company with whom you took out your car loan out, and ask them for a payoff amount. Your bank will generally give you payoff amount with a daily interest amount. If you sell your car too long after the payoff date, you will need to obtain a new amount before finalizing the sale. The payoff amount will be the amount the bank or finance company must receive in order to release its lien on your car.
How do I obtain lien release?
When the bank or finance company receives the full amount owed on the vehicle loan, they will release their lien and send you documentation. This is called a lien release. If you pay off the loan at the bank or finance company keep the receipt as proof that the loan has been paid out. The new owners will also probably request a copy of this also.
At SELLMYCARIN30MINUTES.COM we buy cars with liens on them and our staff will help you along the way ensure that the above steps are followed and that there are no liens on your vehicle or to your credit. We will make out two separate cheques if necessary; one to the bank or finance company and, if there is surplus funds from your trade-in's value, one directly made out to you. You also have the option of paying us the difference if there is a negative amount and we will ensure that the loan is paid out in full.