Buying a used car and Liens?? - Calgarypuck Forums - The Unofficial Calgary Flames Fan Community

brownie · 12-20-2008, 07:30 PM

Well I went to look at a car the other day from a private sale. I was pretty interested and decided to get a vehicle information report. There's a Lien on the vehicle. The guy selling it said he leased it so I would assume the lease is what the Lien is. Is it even legal for him to be selling a vehicle if its leased? I have heard of "taking over a lease" But this is different. I would imagine that he is asking thousand more than what is buyout is but not sure why he doesn't buy it outright and then sell it. Any suggestions? Will the bank even lend you money if there's a lien on it?
Thanks Brownie

Deegee · 12-20-2008, 07:59 PM

The Bill of Sale should outline that the vehicle still has a lien on it and for how much. If the Bill of Sale says that it is lien free and it's not, I would be contacting the seller.

Sometimes companies don't discharge liens as well because they are so paranoid of making a mistake, so the company with the charge may no longer hold an interest in the vehicle, and your banker should be able to help you there.

ken0042 · 12-21-2008, 09:51 AM

I would tell the seller to take care of the lien if he wants to sell it. Because even if it is there in error- you can bet he will be less motivated to get it removed once he has your cash. And then when you want to sell it you have to track this guy down, get it settled, etc. Or if you end up in an accident your insurance company will pay the 1st lien holder first.

Just too much bad that can come from this.

stang · 12-21-2008, 10:21 AM

Or the lein holder can come take it back if he defaults on payments

shane_c · 12-23-2008, 05:55 AM

Get the lien taken care of first if you are to buy it. Years ago my parents bought a car from a used car dealer. When the original owners traded the car in at the dealer there was a lien on it. Instead of the dealer looking after the lien he gave the people the money for the car. So my parents come along, buy the car and then a few months later they get home from work and the repo man had come during the day and towed the car. They had threatened to send it to auction, etc... in the end the used car dealer stepped up and payed off the lien.

TimSJ · 12-23-2008, 06:16 AM

make sure the lein is cleared. I would make sure that you get a letter from the lein holder that it has been paid.

If the car is leased you will not be able to transfer the ownership without the leasing companies signing it over. The lessee is not the owner of the car and as such they can't transfer the title.

brownie · 12-23-2008, 08:17 AM

Well I think we came up with a solution. I am getting a certified cheque with both Honda Financial and the person who is selling its name on the cheque. I am going to the dealership with him. So Honda will take their money for remainder of the lease and the seller will get the rest.

Sample00 · 12-23-2008, 08:27 AM

Quote:

Originally Posted by brownie

Well I think we came up with a solution. I am getting a certified cheque with both Honda Financial and the person who is selling its name on the cheque. I am going to the dealership with him. So Honda will take their money for remainder of the lease and the seller will get the rest.

thats definately the best way to do it!