How Can I Check If a Lien on the Car Has Been Paid?

If you buy a car that has a lien on it, you are most likely to have a problem getting a clear title. Even if you somehow get the title in hand, you may still have issues registering and keeping the car until the debt is paid. Whether or not the seller says so, check that the lien has been paid in full before you close the deal. A vehicle lien holder can be a bank, title loan company or even a repair shop.

Instructions

1

Ask the seller to see the actual title. If a lien holder is still listed on the title, chances are the debt hasn't yet been paid. When the loan or debt is paid off, the lien holder sends a release to the department of motor vehicles so that it can update its records and issue a clear title. If the seller cannot produce the title, that is another indication that there might still be an unpaid lien on the car.

2

Retrieve the vehicle identification number (VIN) for the car, as well as the odometer reading, current plate number, year, make, model and color from the seller.

3

Call your local department of motor vehicles office, provide information you have on the car and ask for the lien status. You may have to order and pay for a full vehicle history report. You can also order this report from a third-party vehicle history reporting company.

4

Call the lien holder, if the person is still listed on the vehicle title, to confirm that a current and open debt is still attached to the vehicle (provide the VIN). You may not get full details about the debt, since you're not the account holder. But as a potential buyer, you may be able to at least confirm if a lien exists.