That simply means the seller financed the vehicle when they bought it and the vehicle may not be paid off. But remember, when a vehicle is paid off the finance company does not report that to the State Department of Motor Vehicles.
Accordingly, is a lien bad?
A lien gives an individual or entity a claim to a property until a debt is paid off. If the debt goes unpaid, they have the right to take it back. … It’s generally considered to be a bad thing if you have a lien on your property.
Considering this, is a loan lien record bad?
Like everyone else has said, a lien record is just a record that someone had a loan. Liens are not bad things, it just means that a loan was taken out with the item (house, car, whatever) as collateral. It is perfectly normal.
Is it a bad idea to buy a car with a lien?
A lien lasts as long as a car has an outstanding balance on it, so if you purchase a car with a lien on it, you must pay it out in full. … The DMV will have details on the title holders of the vehicle, so it’s a good place to start when it comes to buying or selling a car with a lien on it.
What does Carfax loan or lien reported mean?
If the seller pays off the loan, no problem – the lien will be released. But there may still be paperwork required to satisfy the DMV. A lien is a legal means of recognizing that, until the loan is paid off, the lender is the true owner of the vehicle.
What does it mean when it says lien reported?
A lien is the right of a third party (such as a bank, or an individual) to claim ownership of a car until the loan has been paid off. If you’ve ever purchased and financed a car through a dealership, the lender held the lien against your car. … If you finance your purchase, the bank will hold the lien.
What does loan lien mean on autocheck?
A loan/lien is the legal right to take and hold or sell the vehicle of a debtor as security or payment for a debt. Normally, a vehicle will have a lien due to a loan or unpaid repair bill against the vehicle. Check with the seller to ensure that the lien has been satisfied.
Who holds the title when there is a lien?
A lien holder is the lender that holds the lien. A lienholder may be leasing a car to you while collecting interest, or they gave you money to purchase the vehicle. If you are financing your car through a bank, private lender, or dealership, they are the lienholder.
Will Carfax show liens?
The DMV may report to CARFAX when a vehicle has been given a lien, but they do not necessarily report to us when the lien has been released. If you’re buying a car and CARFAX reports a lien, check with the DMV, provincial government or financial institution to see if the lien has been released.