When a vehicle has a lien it means there is an outstanding loan obligation and the lender is listed as the “lien holder.” If you purchase a car that has a lien on the title, the lender may not release the title until the loan is paid off.

There are different ways that the process works.  Sometimes the lender sends out the title to the buyer a few weeks after the car is paid off.  You may have to contact the seller’s lender in advance to find out what they need to transfer title.

There are online services such as my title transfer.com that can help you to follow the correct protocol to make sure that there are no problems in getting your registration changed over into your name after you purchase a car with a lien on the title.

Here are the basic steps involved in transferring a title with a lien;

• Get the name of the lien holder of the title and inquire about the total amount due in order to get the lien released. Contact the lien holder to verify the payoff and any other stipulations to transfer title
• Pay off the balance of the lien or if you are financing the vehicle through your bank, inform the bank of the lien including the name of lien holder along with the amount owed.
• Pay for the car and get a bill of sale.  You and your seller should both sign the bill of sale and date it, and preferably have it notarized
• Wait for the vehicle’s title after you have paid the lien off. Take your title and bill of sale to the Department of Motor Vehicles office to register the car in your name. You will need your identification, appropriate title transfer fees and proof of insurance. A new title in your name will be mailed to you

If you are looking for a new vehicle, be sure to visit your local Toyota Dealer in St. Louis, Spirit Toyota.