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Typically because you owe money on it. When you take out a loan, the lender will use the car as collateral. This way if you default (fail to make payment) the lender can reposes (also known as recovery) the car to attempt to recover their loss. Once you have satisfied your debt the lien will be lifted. You can then go to the SOS or DMV with your title and prof of lien holders satisfaction and have the lien removed from the vehicles title. Some financiers do this last step for you.
Liens can however be more complicated. The lien is partial ownership of the said collateral, meaning you cannot sell a vehicle without the consent of the lien holder. Lenders can get away with it because upon your failure to make payments, you void the contract and forfeit your portion of ownership.
Wiki User
∙ 11y ago
Wiki User
∙ 8y agoGenerally, a lien is a notice that the owner borrowed the funds to purchase the car and the loan must be paid off in order to obtain a release of the lien. A potential buyer should never take the word of the seller that the lien has been paid. They should produce a valid release executed by the lender.
Wiki User
∙ 8y agoMost lenders would only give you an auto loan if they are the lien holder until your car is paid off. This way you cannot sell the car or do anything legally without their consent.
Wiki User
∙ 12y agoMost likely they will take the car and want to sell it to get their money
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does my car have a lien?
does my car have a lien?
IS THERE A LIEN ON IT?
is there a lien on this car
Is there a lien against a car that I am going to buy?
If you are buying a car on payments then there will be a lien on the car. the company will release the lien once the car is paid off.
Can bankruptcy lawyer have lien removed from car?
If the lien is a purchase money lien (granted to allow you to buy the car), then no. If it is a nonpurchase money lien (you granted a lien on the car to secure an unrelated debt), then yes.
Can you file a lien on own car to prevent another from filing a lien on your car?
You cannot file a lien on your own car to prevent another from filing a lien on your car. If you owe someone money they may be able to put a lien on your car so that they are paid in full.
What is a Lien Fee for on Impounded Car?
what is a lien fee when your car is inpound
How much money do you get for a car lien?
Answer lien on car?i let someone borrow 1100.00. he doesn't own a home. and he has a cr with a loan on it. can i put a lien on the car??
How do you fill out lien release form for a car?
You don't. The only one who can fill out a lien relese is the lien holder. As the owner of the car you are not the lien holder. Take the title to whomever holds the lien and they will release it.
Do I inherit a debt if the car I bought had a lien on it?
It is illegal to sell a car with a lien on it. If it has a lien you will not be able to register the car in your name. The loan must be paid off and the lien released before you can actually own the car. You may have just got scammed.
What is the limitation on a car with a lien on it before you can get the title?
If the car has a lien, you usually have to pay off the lien before you can get a clear title. Otherwise, in this state you have the name of the lien holder on the title.
Can I get the lien off of a vehicle that is no good and put it on another vehicle that is in my name?
If I have a car in my name with a lien on it and the car Is only god for scrap metal can I put the loan lien on my wifes car if she transfers the car to me.
Can you get a title to a car that has a lien on it?
Contact whoever has the lien and talk to them.
