How to Sell a Junk Car With a Lien Easily
If you have a junk car that has been sitting on your property, taking up wanted space, it may be a good time to sell it. You will be able to free up some space in your yard and you will also make a little extra money in the process.
Selling an old junk car is usually a fairly easy and straightforward process. However, if you have a lien on the car, the process becomes a little trickier. If you want to find out the easiest way to , DoNotPay is here to help.
What Does It Mean if There Is a Lien on Your Car?
Both new and used cars are expensive. This is why most people who purchase a car end up going to a bank or lending institution to get a loan for the car. Once you sign the papers for the loan, the lender will put a
This means that they are technically the owners of the vehicle. If you stop paying on the loan, they can take the car back and sell it to get back the money that you owe them. But if you completely repay the loan back, the car's title will be put in your name and you will be the official owner of the car.
Can I Sell My Car if There Is a Lien on It?
A lien on a vehicle tells the potential buyer that essentially someone else has the legal rights to your vehicle. As long as the lien is still active, you will not be able to sell it. However, that doesn't mean that there are no steps that you can take to remove the lien.
There are three types of liens that can be put on your vehicle, which include:
- Property tax lien
- Mechanic lien
- Lender lien
The IRS may put a lien on your vehicle if you fail to pay your personal property taxes. As long as you owe the IRS money, you will not be able to sell the car. Also, if you recently had to get your car serviced at a mechanic and were unable to pay the service bill, the mechanic can put a until the bill is completely paid back.
Do You Still Have to Pay the Car Loan Back if Your Car No Longer Runs?
Yes. If you have taken out a loan for any reason, you are responsible for paying back the loan until it is completely repaid. It does not matter if your car runs or not, you still must repay the loan. Additionally, you will still need to pay property taxes on the vehicle.
How to Remove a Lien From Your Vehicle by Yourself
In order to remove a lien from your vehicle, you must pay back any money that you owe on it. If you are unable to pay off your debts, you may be able to talk to the new buyer and ask if they will pay off the lien in exchange for the car. In order to do this, you will need to:
- Talk to the lender
- Get the exact amount of money that you owe (make sure that they include any penalty charges as well)
- Make sure that the title can be transferred to the new buyer's name if they pay off the lien
If the new buyer and the lender agree to the terms, ask them to put their agreement in writing and have them both sign and date the paper. This will remove you from any other monetary obligations that may be connected to the vehicle's lien. After the lien has been paid off, you may need to go to the local DMV and request that the lien be removed from your vehicle's title.
If you have a lien on your car, it is considered public record. Different states have various rules when it comes to how long your lien information can be known to the public. Here is a look at some state's time limits:
| Arkansas | 10 Years |
| Texas | 10 Years |
| Arizona | 5 Years |
| Michigan | 5 Years |
| California | 10 Years (can be extended) |
| Tennessee | 10 Years |
How DoNotPay Can Help Remove a Lien From Your Junk Car
Going to the DMV to have the lien removed from the car can take a lot of time and patience. Luckily, DoNotPay has an easy way to have the so you can sell it.
To get started, follow these three easy steps:
- Search for remove my lien on DoNotPay.
- Start our Remove My Lien product.
- Answer some questions about your specific lien and let us help you craft a letter to your creditor to resolve the issue.
DoNotPay makes removing a lien as easy as 1,2,3. Once you have submitted all of the required information, we go to work. We will craft a letter that is specific to you and send it to the proper companies and entities to ensure that the lien is removed in a timely manner.
DoNotPay Can Help Solve Your Other Lien Problem
In addition to helping you sell your junk car with a lien on it, DoNotPay can help you in other areas as well. Some of the things that we can help you with include:
- Find out if you have a lien on your home
- Learn how to remove a lien off of any property
- Learn how liens affect your credit score
- Learn how to properly fill out a lien release form
DoNotPay is here to make your life easier. In addition to helping you with all of your lien-related issues, we also offer a wide range of other services as well. Don't hesitate to check out our full list of services today to see how we can help you.