Statistics show that there are roughly 17 million new vehicles sold each year in America.
Buying and selling vehicles is a common part of life. Rarely does someone keep the same car for their entire lifetime. Whether you buy used or new, the process is likely familiar to you.
Are you considering buying or selling a car? What needs to be done in order to make this happen? Are you concerned about the lien on your current vehicle?
Keep reading to learn how a lien affects buying and selling a car.
Table of Contents
What Is a Lien?
In order to understand how a lien affects buying and selling a car, it is important to understand what the components of a lien are. By definition, a lien is a legal claim or a right against a piece of property.
Liens are typically used as a form of security to settle a debt owed. Once the debt is settled, the lien can be taken off the property. This ensures that someone will pay back the debt or action will be taken to right the situation.
How Buying and Selling a Car Works With a Lien
One way to go about buying and selling a car with a lien is to complete a trade-in with a dealership. If you are looking to exchange your used car for a car that they have, they can help you work through the lien. Dealerships can work with the entity in charge of the lien to facilitate the transfer of ownership for you.
The key is to try to pay off the debt owed before starting the process so that you don’t have to worry about adding new debt to your existing debt with your vehicles. This will also demonstrate that you are capable of paying back what you borrow for purchase.
Talk With Family and Friends About Buying and Selling a Car
The chances are high that you know family or friends that are looking to purchase or sell a vehicle. Depending on your situation, you may be able to make a deal with them instead of completing a transaction with a stranger or a dealership.
Family and friends will likely be more understanding of the financial situation and patient with you while you get a clear title for the vehicle. This can avoid any deep questioning into your credit and allow you to get the vehicle you want without the hassle.
While you may not be able to buy a new vehicle from family or friends, they could give you advice on how to go about the process as well.
Buy or Sell Today
Now that you have read about how a lien affects buying and selling a car, you can move forward in the process today. It is important to have information on how to go about the process before attempting to buy or sell your vehicle. Visit our blog for more helpful articles like this one.
