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  • Andrew Maggard

Lien on Me - What is an auto lien?


A lien on a vehicle is a legal claim that a lender, such as a bank or credit union, has on the vehicle as collateral for a loan. This means that the lender has a legal interest in the vehicle until the loan is paid off in full.


When a person takes out an auto loan to purchase a vehicle, the lender will place a lien on the vehicle's title. This lien remains in place until the loan is paid off and the lender releases the lien. Once the lien is released, the vehicle's title will be clear, and the borrower will have full ownership of the vehicle.


Liens can also be placed on a vehicle for other reasons, such as unpaid taxes or parking tickets. In these cases, the lien will remain in place until the outstanding amount is paid in full.


It's important to note that a lien on a vehicle can affect the vehicle's ownership and can make it difficult to sell or trade-in the vehicle. Most lenders require that the loan be paid off in full before a lien can be released, and buyers may be hesitant to purchase a vehicle with a lien on it.


When purchasing a used vehicle, it's important to check for any liens on the title. A vehicle history report can also be obtained to check for any liens, as well as the vehicle's accident history, and other important information.


Liens can affect the vehicle's ownership and can make it difficult to sell or trade-in the vehicle. It's important to check for any liens on the title when purchasing a used vehicle and obtain a vehicle history report to check for any liens and the vehicle's accident history. Make sure you're knowledgeable about the title history of a vehicle that you're purchasing!

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