I am considering buying a car online, and the Autocheck turned up a Lien, (this September, very recent)

What would this likely be, what should I ask the owner, and what do I need to be careful about?


Many Thanks in advance.

Someone has borrowed money against the car?

If theirs a lien against the car,the owner can't sell it until its paid.

How do I verify that it has been paid?  Beyond just taking his word for it.    Can the owner still have possession of the title if there is an outstanding lien?

Quoted: If theirs a lien against the car,the owner can't sell it until its paid.

Actually yes he can sell it, however he cannot transfer the title out of his and the lienholders name until it is paid off. And, BEWARE a vehicle up for sale that quickly, chances are high that it's either a dealer or someone who bought it and found $$$$$ problems with it so they are dumping it. BTW states have different rules when it comes to the title and who has it in their actual posession. In Mich the owner has posession but the bank, CU or lending institution has their name on it and it must be signed off by them before the title can transfer legally.

I would not bother with the lein. Move onto another car that has a clear title. You are just asking for trouble. If you buy the car you also buy the problems with the leinholder. Its not supposed to happen that way, but sometimes it can. There is a reason the guy is selling at that price and it is probrobly that. Go find a similar vehicle and forget this one.

Quoted: Quoted: If theirs a lien against the car,the owner can't sell it until its paid. Actually yes he can sell it, however he cannot transfer the title out of his and the lienholders name until it is paid off. And, BEWARE a vehicle up for sale that quickly, chances are high that it's either a dealer or someone who bought it and found $$$$$ problems with it so they are dumping it. BTW states have different rules when it comes to the title and who has it in their actual posession. In Mich the owner has posession but the bank, CU or lending institution has their name on it and it must be signed off by them before the title can transfer legally.

Thanks for all the replies.    He bought it a year ago, and I guess still owes money.    I will ask him, and proceed with extreme caution.  

You seem to be missing the point...if there's a lien on it, it's not worth your time or trouble and could cost you a whole shitload of money.  Go find someone else who is selling a similar make and model.

I will ask him, and proceed with extreme caution.

If this isn't handled correctly, you could lose the money and the car.  IMHO not worth the risk.

I have actually seen people get screwed with this buying a car at auction.  In NYC, if a car has too many unpaid parking tickets, the city marshalls will tow the car and auction it off, just to get enough money to pay off the parking ticket debt.  However with many of these cars, there is still a lien on them from an outsanding loan; and the cars get repossessed from the finance company.

In the past this is how I have sold a car with a lien. Get a short term unsecured loan for close to the amount owed on the vehicle. Pay off the vehicle and clear the lien holder off the title. [all they do is sign off usually and date it.] Sell vehicle and pay off the short term loan in it's entirety. Basically, you might pay a few bucks on the interest for a week but it really makes it easier for both the buyer and seller. You as the buyer are then assured that the vehicle is "clean". The seller does not have to play games either as far as trying to get payment first to pay it off before clearing the title. You can always suggest that. If for some reason they cannot, be relatively assured that they did not also do maintainance either or they have poor credit, both groups are not who you want to buy vehicles from.

Quoted: You seem to be missing the point...if there's a lien on it, it's not worth your time or trouble and could cost you a whole shitload of money.  Go find someone else who is selling a similar make and model.

It's a freaking CAR LOAN!

All the seller needs to do is get a payoff letter from the lienholder and provide the $ to them, at which time they'll release the title. If you meet the guy at his bank they'll do it all at once for you.

If you have to go through this to get the specfic car you want, it's not really a hassle.

On the other hand if you are just looking for any car and convenience of doing the sale anywhere, then pass on it.

Sometimes the lien is put on a vehicle for non payment of auto repairs. A repair shop can do that but it costs us money to put a lien on a car, so it has to be worh the trouble.

As long as the lien is satisfied it's no problem. If you don't know the seller then get proof before you buy.

My Nissan Maxima had a name on the title in the lien holders line when I bought it, I got it registered and it was not a problem because the lien was satisfied. I knew the previous owner and he said it was already taken car of, but it stays on the title unless you get a new one issued. I wasn't required to show proof either. The new title is clean.

The car I am looking at is a Toyota Celica Convertible, It is pretty specific in the sense that I can only find a few nationwide on Ebay.  Anybody know of any other good online shopping venues?


I will only take this further if the seller can prove that the lien is already paid off, along with the proper signature on the title.

In reality, I will probably just take my Benjamins elsewhere.




Thanks again for the opinions

It's their problem, and you should not buy their problem.  If the owner has taken care of all liens, the THEY can easily get the department of motor vehicles to issue a clean certificate of title in their name alone.

I always do that when I pay off a loan on one of my vehicles, then there's no problem if I want to sell it.
If the registered owner hasn't done that, they don't have their act together, assuming they're telling the truth.  And as someome said previously, then they probably don't have their act together on maintenance and other things.

I wouldn't touch this one.  

The procedure and proof that the lien(s) was satisfied will vary depending on the regulations in effect in the state where  the MV will be registered and titled. It is normally a very simple procedure but you must make sure that you have the proper proof that the lien has in fact been satisfied. You may also be able to verify that the lien has been satisfied by contacting the original lien holder.

Most states have the information, procedures and forms on their website and some will allow you to check that status of lien for a car that is titled in that state.