What You Need to Know About Auto Lien
If you want to buy a car that has been financed, chances are that there will be a lien on it. One of the questions most people tend to ask is what a lien is. A lien refers to a claim on property to ensure payment of a debt. This means that when your car is financed by a bank loan, the lender will file a line with the state of your car. Therefore, when you do not settle the loan, the bank will claim the vehicle and if the vehicle gets repaid it will be automatically released. In this post, we will take you through what you need to know about auto lien including the process to follow when buying a car with a lien.
If the car you want to buy has a lien on it, you will find the purchase process a little complicated. With a lien, you can transfer the tile into your name, insure the car, or even get a loan for purchasing the car. If a lien is placed on a car, it implies that there is an outstanding loan on the car. The lender will not place their own line on the vehicle as collateral for the loan once a lien is placed.
First, you need to check if there is a lien placed on the vehicle you want to buy. You can know this by checking the vehicle’s current certificate of title. The lien will be listed on the title of the vehicle. You can ask the seller of the car if you can access the title. In the event they provide a copy of the title, ask them to price the original since at times the copy may not be the true copy of the original.
In addition, you need to check for a lien with a lending institution. If you are applying for a loan to buy the car, you may want to call your loan offices with the VIN number of the purchase. The office will then check for liens against your vehicle, you will pay a small fee for the service. Once you have checked for lien against your car, the next step involves running an online vehicle history report, also known as VHR. All you need is a VIN number. With the number, you need to search for a number of online websites that facilitate the search. While searching the websites, you will have to choose between free and paid versions. The best vehicles to buy are those that do not have a sketchy history or warranty blocks.
If you are having a hard time checking if the lien status of your car, you can consider choosing an auto lien company to do all the tasks. The following steps will help you get the right company. First, check the reputation of the company. The auto lien company you want to choose needs to have a good reputation for providing the best services. In addition, you may want to choose a company whose fees are pocket friendly and has been in the industry for a long period. By observing these steps, you will have an easier time buying a car with a lien on it.