Why do i have a lien on my car

As a used car buyer, you may be responsible for any unpaid debt the amount of the lien registered against a used vehicle that you buy. If you find out that the lien was not paid off on a car you now own, then the secured party may be able to repossess the car from you.

That is why it is critical to know whether there are any liens registered against the vehicle you are purchasing — information that CARFAX Canada can help you determine. The first step to clearing up a car lien is discovering it. While a dealership is legally required to clear off existing liens before selling a used car, you have to be more careful when buying or selling cars privately.

To clear the lien, the vehicle owner must first pay off the money owed on the car. The lender will provide a document stating that the lien has been discharged. Buying a car with the peace of mind that it is lien-free, removes a lot of the stress and uncertainty from the car buying process. Sign up to receive Driving. A welcome email is on its way.

If you don't see it, please check your junk folder. As an example, if you own a vehicle and you finance all or some of that vehicle with a lender or financial institution, your vehicle will likely have a lien registered against it by the lender or financial institution. If a lender loans a car owner money to pay off the vehicle, the lender may then be granted partial ownership of the vehicle through that lien.

The first step to clearing up a car lien is discovering it. While a dealership is legally required to clear off existing liens before selling a used car, you have to be more careful when buying or selling cars privately.

To clear the lien, the vehicle owner must first pay off the money owed on the car. The lender will provide a document stating that the lien has been discharged. The secured party can provide the seller with this.

Buying a car with the peace of mind that is lien-free removes a lot of the stress and uncertainty from the car buying process. Dealer Login FR. Vehicle History Vehicle History. Car Maintenance Car Maintenance. Tools Tools. Resources Resources. Blog Support Centre.