How To Sell Your Car With A Lien
Any time you buy a new car from a dealer with an auto loan, a lien is automatically placed on your vehicle until that loan is fully paid off. This means that the lending company that issued your car loan is the rightful owner of your car and therefore has their name on the title.
However, if you are ready to sell your car or upgrade to a new vehicle, you should know that you can legally sell your current car while there is still a lien on it if you take the right steps.
If you are looking for a new car and wish to sell your current one, but are still making payments on it, you will need to remove the lien on your car before you can transfer the title. This DoNotPay guide will walk you through selling your car with a lien on your own, as well as offer an alternative to trying to complete this task by yourself.
What Is A Car Lien?
A car lien is simply another term for a car loan, where the lending company is considered the legal owner of the vehicle until you pay off your loan in full. If you want to sell your car with a lien on it, you have a couple of options. They include:
- Selling to an auto dealership as a trade-in.
- Selling privately after paying off the car loan by yourself.
Whichever route you choose, there are a few important things you need to know about removing your car lien before you proceed with selling your vehicle.
Can I Remove A Lien Before I Sell My Car?
As long as there is a lien on your vehicle, you will be unable to change the name on the title to the new potential owner. Here are the steps you should take when you want to sell your car with a lien.
- Find out if you have a lien against you and how much you may still owe on your car loan. You must have paid off the car loan in full before you can sell it, whether on your own or with a check from the prospective buyer.
- Get your car ready to be sold by having it tuned up and cleaned.
- You can then sell your car to either a dealership or through a private buyer. Be sure to read the table below before deciding.
|Selling to a Dealership||The easiest way to sell your car with a lien on your own is to take the car to an auto dealer to trade it in for a new vehicle. The dealership will take care of the work of renegotiating your loan for the new car and getting the title of the car you are selling transferred to them.|
|Selling to a Private Buyer||If you wish to sell your car privately, you must pay off your car loan amount with your lending company before putting it up for sale. The typical way to do this is to go to the lending company's office with the new buyer to complete the payoff process, where the buyer will write a check to the lienholder for the total agreed-upon amount and be able to leave with the title in their name.|
If this process sounds complicated to you, rest assured that you don't have to take on this task by yourself. While selling your car with a lien is easier to do at a dealership, there may be reasons you wish to sell privately instead. The key takeaway is that your car loan must be fully paid off to have a lien removed from the car you wish to sell. That's where DoNotPay comes in.
How DoNotPay Can Help You Sell a Car With a Lien
If you need help paying off your car loan and having the lien removed, DoNotPay has a Remove A Lien product that can save you valuable time by taking care of most of the communication with the lending company on your behalf. Simply follow the steps below to get started.
If you want to remove a lien on your car before you sell it but you don't know where to start, DoNotPay has you covered in three simple 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.
And that's all there is to it! DoNotPay will work with your lending company to fill out a Release Of Lien form and send it to them to sign, which will remove your car lien from the record so you can sell it with less hassle.
Can DoNotPay Help Me With Other Lien-Related Issues?
DoNotPay has been helping our customers remove liens from their property and credit reports for years. We can help you learn more about:
- Lien removal on your home
- Lien removal on your property
- Tax liens on your credit reports
- Removing a tax lien from the public record
What Else Can DoNotPay Do?
In addition to helping you remove a lien on your car before you sell it, DoNotPay can help you simplify your life in all kinds of helpful ways. Our products are designed to help you work smarter and take care of tedious tasks that may otherwise require too much of your precious time. DoNotPay products can help you:
- Sue anyone in small claims court
- Contact customer service
- Learn about the release of liability
- Reduce your property taxes
- Set up automatic payments on your bills
- Increase your credit limits
- Clean up your credit report
- Close bank accounts
Sign up for DoNotPay today to learn more!