How To Trade A Car With A Lien

In most cases the easiest way to sell a vehicle with a lien is to do the transaction at an auto dealership particularly if the car is going to be a trade in. In order to sell or trade a car you need a title without a lien on it.

Trading In A Car To A Dealership That Has A Lien On The

In order to make this happen you need to get that lien off.

How to trade a car with a lien. In this situation the trade in process is fairly simple. Pay off the car which will release the title to you so you can do the swap. Once you give the dealer a power of attorney the dealer will contact the lender directly and handle all financial arrangements.

A trade in with equity. If you need another vehicle the easiest way to do this is to head to a dealership. Selling to a dealer.

There are only two ways to solve the issue. When theres a lien on your car it has to be removed before ownership can be transferred. To trade in a car with an existing lien you will need to gather information and provide existing loan information to the new lender.

This means that the cars current trade in value is higher than their loan balance. In these transactions dealers work directly with the lien holder listed on the title which is usually a credit union or a bank to facilitate the transfer of ownership. Both are viable options but the lien will be dealt with differently depending on the route they take.

In a best case scenario the buyer who wants to trade in a vehicle that theyre making payments on has equity in the vehicle. Dealer when a borrower goes through a dealership to either sell or trade in their vehicle the dealer handles all the paperwork and pays off the lender. This ensures a smooth transition and helps the buyer make an informed trade.

Call or contact the bank or finance company that has the loan on your car and secure a payoff quote valid for 30 days. Regardless a dealership will be willing to accept your trade in and pay off your remaining loan balance with your old lender removing the lien from the vehicle. You cant trade your car because you dont own it the bank does.

Once the lender has its money it will send a release of lien letter to the dealer. Youll be able to sell. Trading in a car with equity.

The easier option of the two is selling your vehicle with a lien to the dealership where you intend to purchase your new car. When you have equity in a vehicle that you trade in you can apply the full amount toward your new car or apply some of it to a down payment and keep the rest.

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