Title/Lien Question.

[Kaervak]

I'm looking at buying a 2003 Forester. It's currently owned by a local company, original owners. It's a seven year old car and there's still a lien on the title from the original purchase. After seven years the original loan should be paid off now, by a couple years actually.

So my question, do corporate vehicles have some weird clause that since it's company owned, the bank has a lien on the title (even if fully paid) until the vehicle is sold to someone else? The Forester is in great shape and priced quite well, but I'd hate to have to deal with some PITA lien issues.

 

[Greenman]

It was never changed when it was paid off. I went through this some years back, it became a nightmare. I ended up donating the car so I wouldn't have to deal with it anymore.

 

[Meghan54]

Why not simply ask whoever is selling the vehicle if they're going to provide a title that states the lien has been satisfied and the vehicle is clear of any liens.

 

[Kaervak]

Why not simply ask whoever is selling the vehicle if they're going to provide a title that states the lien has been satisfied and the vehicle is clear of any liens.

I'm going to look at the Forester tomorrow and the lien is definitely something I'm going to ask about. Hopefully it's a non issue.

 

[satyajitmenon]

Why not simply ask whoever is selling the vehicle if they're going to provide a title that states the lien has been satisfied and the vehicle is clear of any liens.

This. Don't pay a dime till you see a title free and clear. If the loan is truly paid off, the current owner needs to have the lien taken off the title.

 

[fbrdphreak]

Yeah, it should be pretty easy to get a lien-free title. All I had to do was mail a letter from the lien holder (which was a private party, not a bank) to the DMV with my duplicate title request.

But definitely don't buy it until the owner gets the lien removed. Just save yourself the hassle.

 

[Kaervak]

Looked at the vehicle today, quite nice for it's mileage. Asked specifically about the lien and the vehicle is paid in full and the title is clear and in their hands. The bank that's listed on the title isn't even the bank they do business with for their vehicles so it must be a clerical error with the BMV. There are a couple things wrong with it, but nothing major that I can't handle. Now comes the fun part of buying it.

 

[satyajitmenon]

Looked at the vehicle today, quite nice for it's mileage. Asked specifically about the lien and the vehicle is paid in full and the title is clear and in their hands. The bank that's listed on the title isn't even the bank they do business with for their vehicles so it must be a clerical error with the BMV. There are a couple things wrong with it, but nothing major that I can't handle. Now comes the fun part of buying it.

What makes you think the DMV won't screw you over when you take the title to them to transfer in your name?

"I'm sorry sir. Our system says there's a lien on the title. Blah blah blah..."

 

[Kaervak]

What makes you think the DMV won't screw you over when you take the title to them to transfer in your name?

"I'm sorry sir. Our system says there's a lien on the title. Blah blah blah..."

That is a good point actually. I suppose since the title is free and clear when I buy the car I could ask for them to give me the proof that it's paid in full just in case there's an issue.