Car liens serve as an insurance policy that enables your creditor or lender to assume possession of your car while you are still indebted. In case you default and fail to pay, it gives your creditor or lender the legal right to repossess your car. The lien is what makes you take responsibility for paying the loan using your car as collateral.

Lenders put a lien on the car title to ensure they have the right to repossess the car in case the borrower defaults, this means that they have to be paid first if the car is sold. The collateral is what secures and guarantees that your lender will be able to recoup their money.

If there is a lien on a car, it means that there is an embargo on that car that may resist the way you use the car and what you can do with the car. This means that, if there is a lien holder on your car, you cannot sell the car and you cannot use the car to secure a loan.

Having a lien on your car means that you do not own the free and clear. To own the car free and clear you need to pay off the loan on the car. As soon as you pay off the loan on the car, your lender will release the title to you and they will also give you a lien release letter in the letterhead of the loan company to show that you have paid off the loan.

If you wish to sell a car that you have a lien on, the first thing you need to do is to pay off the loan. If you don’t have enough to pay off the loan, you can liaise with your buyer and your lender such that you use the money from the buyer to pay off the loan.
It is after this you can transfer ownership to the new owner.

It is not illegal to sell a car with a lien on it, as long as you are able to pay off the loan on the car and you are able to transfer ownership to the new owner. However, if you do not pay off your loan on the car, you will not be able to sell the car because the lender still has right to the car and is still in possession of your title.

Most states make it illegal to sell a car that doesn’t have a title. If your title is stolen or if you lost your title, you can get a duplicate title from the Department of Motor Vehicles (DMV) in your state. If you don’t have a title because you are owing on a car and you sell the car, it is not different from selling a stolen car and this is considered as fraud and it is illegal.

Is Your Car Worth Selling?

To sell your car, it has to have equity. Equity is the values of your car. In other words, it is when the value of your car is more than how much you owe on it.  Once you have equity, you might no longer need to make loan payments.

If you are upside down or if you have negative equity, then it is not worth selling the car. Negative equity is when your car is worth less than the amount of debt or loan you have on the car. You can only sell the car if you are able to cover the difference between your loan balance and the sale price.

Options for Selling your Car

There are two major options available to sell your car; you can either sell to a dealer or a private party.

Selling to a Dealer

It is much easier to sell to a dealer than selling to a private party. When you take your car to the dealership to sell, they will evaluate or appraise your car, pay off the existing loan on the car, and give you a check for the remaining balance.

Your lender will get a release of lien letter from your lender, which will enable them to sell the car. The title will be sent to the dealer if you are in a title-holding state (only 9 states are not title-holding states).

Selling your Car to a Private Party

If you are selling your car to a private party, it requires a little bit of work. However, you are likely to sell the car to a private party at a higher price. Once you have agreed on the price of the car with the lender, you can visit the lender together with the buyer, so that the buyer can present a check for the outstanding balance. Your lender will provide you with a check for the amount you are owed from the sale, and then the title will be signed over to the new owner.

What is a Salvage Title?

A salvage title is issued to a car that has been totally branded as a loss by an insurance company as a result of damages to the car in an accident or flooding. What this means is that the amount needed to repair the car is more than what the car actually worth. Over 75% of the car has been eroded. Cars with a salvage title are not safe for driving and they are designated as not road worthy.  

The title of a car is meant to show what the vehicle has been through in the past. It tells whether the car has ever been totaled, and whether the odometer has ever been rolled back.

The laws and regulations governing how a car is branded varies from one state to another. If you're seeking a title loan buyout or a title loan period, it's vital you know the vehicle history of the car you plan on purchasing. Hence, you need to check with your local Department of Motor Vehicle (DMV) to know what a particular brand means or depicts.

Read more about salvage titles from https://www.thebalance.com/pros-and-cons-of-a-salvage-title-car-527266.

There are lots of risks that come with buying a car without a title. Although it is possible to buy a car without a title, but you have to be sure of what you are getting into. Make sure you do your due diligence before going ahead, if you spot any dark spot, it is better to let go. We will take a look at some of the risks that come with buying a car without a title and the things you should consider before signing an agreement with a seller who does not have the title of the car.

1.   It is Illegal

In most of the states in America, it is completely illegal to sell, buy, or drive a car without a title. However, despite this law, people still buy cars without title. The title might have been stolen, damaged, or misplaced, which. If any of these is the case, it is better for the seller to get a duplicate title for the car from the state Department of Motor Vehicle. It is easier for the seller to get a duplicate title than for the buyer to get the title of a car that was bought without a title.

The title is what establishes the legal ownership of the car, you can’t walk up to an officer with a bill of sale and wanting to get a title without first showing the title of the car to confirm you are the true owner. They will ask you questions and might even conclude you forged the bill of sale document. To avoid this kind of scenario, you can try as much as possible to avoid buying a car without title if you can.

2.   A lost title Leads to Other Problems

Car titles take months to arrive, and many states will not issue license plate based on lost title paperwork alone. This means that until you have gotten the title of the car processed, you can’t get a license plate for the car. Even if the car you bought has a license plate, the existing license plate is not registered in your name. This can attract a ticket for invalid registration if you are stopped, the toll fees or parking ticket goes to the last registered owner.

Owning a car without a title means you can’t get a loan as you will be unable to use the car as collateral.

Also, you might be unable to insure the car because it doesn’t have a title. As you will be seen as not the owner of the car. Only the car title loan Mesa, AZ establishes you as the owner of the car and not the bill of sale.

3.   The Status or History of the Car is a Mystery

Without the title of the car, you are not sure of the history of the car. You don’t know if there is an active lien on the title, or may be the car carries a salvage or flood status. A whole lot of nasty things about the car can be hidden from you without having the history of the car.

4.   It Could be a Stolen Car

The car may have been stolen which can lead to non stress free days. You need to run a VIN check to be sure the car wasn’t stolen. If the seller doesn’t give you the VIN of the car over the internet or on phone, see such move as a red flag.

5.   The Seller Could Be a Scammer

It is possible the seller is a scammer and only looking for the next victim. Arrange to meet the seller together with a friend in a public place.

Here are some of the major risks that may come with buying a car without title. Read more from https://en.wikipedia.org/wiki/Title_loan.

More people are now getting familiar with title loans as a major means of getting quick cash considering the many troubles and credit checking that is applicable with banks and other traditional financial institutions around. A title loan is a type of secure loan where the lender uses the title of their car as collateral to get a title loan Atlanta, GA or Columbia, SC. Usually, the amount of loan that can be gotten is dependent on the worth of your car and as a result of this it doesn’t matter whether you have bad credit, the lender is less concerned about this. The lender is more focused on the value of your car as it is based on this that they arrive at the amount a lender can get. You can get as much as 50% of the worth of your car depending on the lender and their evaluation of whether you have the capacity to repay the loan.

Most companies that offer title loans are companies that have the license to offer title loans online. Hence, before you apply for title loans in Columbia, SC, or Atlanta, GA, you must be sure that your lender is approved by the state to offer title loans online as online title loans are faster and easy. This loan application process makes it easy for your application to be treated and approval is gotten in few minutes.

With title loans you can get loan with low interest rate so that you can keep up with your other financial obligations while you repay the loan. If you live around Atlanta,GA or Columbia, SC and its environs and you need a quick cash, a car title loan can be of great help in getting the money you need, as it is fast and simple as ABC. You can get as much as $200 to $20,000 when you apply for easy title loan. You will get your check as soon as your loan application is approved.

Do I Get to Keep My Car? 

Your lender should not impound your car after getting a title loan. However, it is advisable that you should establish this fact before proceeding with your loan application so that you are not shortchanged. The lender is only expected to place a lien on your title which will be removed and returned to you after you have completely paid off the loan. Read more about clear titles from https://www.supermoney.com/2018/01/get-auto-equity-loan-without-clear-title/.