What is a Lien On a Car and How to Remove It?

Are you a first-time buyer looking to find a safe way to purchase a car? Are you afraid of buying a used car from a private seller? Have you heard buying a car from an individual is extremely difficult? 

Have you been told that sellers commit fraud by not disclosing the car lien? Are you desperately searching for the answer to: “what is a lien on a car NOW?” Are you confused and frustrated with the whole car lien thingy? Or, have you bought a car with a lien on it and now you are STUCK? 

If you’ve answered YES to any one of the above questions, You Have Come to the RIGHT PLACE. Because we will clear up your confusion regarding car liens.

Here’s some honest advice for you:

It’s always a good idea to make an informed decision now rather than regret it later. 

First of all:

What is a Lien on a Car?

The lien on the car is the legal interest (or claim) of the lienholder (or the lender) in the vehicle. And, the lienholder or the lender is the person who puts a lien on your car to protect their loan.

But what is that loan? 

Well, this is the loan they gave to you to help you finance your car. This gives them the right to repossess your vehicle in case you, the innocent borrower, do not pay off the loan in full.

By the way, what does the ‘lien on a car’ mean in the US?

Well, the meaning of car lien is the same as above in the US, as well. Should I tell you in simple words? Okay, it is your lender’s way of preventing their car loan from not being fully paid back.

Now, you know what a car lien is. So, you might be wondering:

Who Can Put a Lien on My Car? 

An individual, a financial institution, a mechanic shop, a state, a city, a county, or the auto loan lender can place a lien on your car. And, of course, they can do this for different reasons.

How Do I Get a Lien Removed From a Car Owner’s Title?

To remove a lien from your car title, you can do either ONE or all of these four things:

1. The first one is to get a lien release from the lienholder. The best thing about this is: even if you didn’t pay the associated loan amount in full, the lien holder will send you the lien release document.

   This happens most of the time. By the way, a lien release is a document that declares that your lender has removed the lien or any legal claim to your car.

2. If that doesn’t work, the next thing is to get a letter of no interest from the lender. In this letter, they will declare they have no security interest in the vehicle. After this, bring it to the Department of Motor Vehicles (or DMV). And, happily, they’ll remove the lien from the title.

3. The third one is to check if your lender is legally allowed to place a lien on your title. If they are not, they are not allowed to repossess the vehicle. In this case, you JUST have to get it cleared from the records.

4. The fourth possibility is that your lienholder might be out of business. If they are, you are lucky. Because they won’t be looking to collect the loan from you. You just have to get the legal document.

Which one, by the way?

The one that will declare your lender is not operating anymore. Further, you know you have to bring this to the DMV. 

Why?

(Because they sit there all day long for you. Never mind.)

Back to the serious conversation we were having:

Now, you have all the knowledge related to car liens and how to remove them. If this is too much for you, what are we here for then? You do not need to worry.

Because, rest assured, we know extreme caution is needed in car buying. Especially, when you are buying a vehicle from a private car seller. 

Why?

Because you might get your car taken from you if you ignore the car lien and its removal process. God forbid, if that happens, you would be dealing with legal complications. Let alone the financial loss. 

So, it’s best to let an expert handle it. And you have guessed it right: we are the best professionals in Walpole, MA. We deal with all things related to car loan management. Whether it is administrative tasks or helping you get loans on flexible terms and at competitive rates.

Why we, though?

Because of these two key things:

1. We do not stop until we satisfy our customers.
2. We have expert car brokers. This means: we have tremendous knowledge and experience of buying and selling cars. No matter if they are used cars or new ones.

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