can you sell a car if that seller still under loan?
By kingparker
@kingparker (9673)
United States
May 19, 2013 11:25am CST
I intended to buy a car from this mechanic who used to fix my car. I saw this Nissan Xterra, and done a test drive with it. I also have its VIN number checked with carfax, but the last 2 items really bothers me and hesitate my decision to buy it. It said that "Registration issued or renewed Loan or Lien reported". Is that mean that car still under loan? I don't want spend all the money, and still owe someone else money. But some people say that, if that seller didn't satisfy his car loan previously, he couldn't sell his car, is that a truth? That really bothers me.
1 person likes this
2 responses
@FrugalMommy (1438)
• United States
19 May 13
No, that's not true. If the loan isn't paid in a timely manner, the company that financed it will come and repossess it. Then they will sell it at auction and apply the proceeds of the sale to the outstanding loan.
In most situations a loan needs to be paid off before the title can be transferred to a new owner. If the mechanic got the loan through a local bank, go with him to the bank to get a lien release. He can pay the balance of the loan off in person, and they'll give him the documents he needs for you to get a clear title to the vehicle.
Of course, that's assuming that the seller hasn't already paid off the loan. Talk to him, find out what the deal with the loan/lien on the title is, and go from there. Make sure you pay by cashier's check or some other traceable method, so you have a way to recover your funds if something goes wrong.
1 person likes this
@eagletrek2 (5499)
• Kingston, New York
26 Sep 17
since this guy a mechanic he might be able to a mechanic lien relase, wither the orgianl owner still owe money on the car if the mechanic can do this then the car will have a clear tilte. and then the bank can not touch it for some reason the mechanic get their money first for fixing the car
