How to check for a lien on a car

How to Check for a Lien on a Car?

When thinking of buying a used car, there’s a lot you have to consider. Are you getting a good deal? Is the car safe? Is it going to fit your needs? And one often overlooked subject, one that is very important to know how to do, is how to check for a lien on a car.

Knowing how to check for a lien on a car helps to ensure that you are buying the vehicle legitimately and won’t run into any problems down the line. The last thing you want is to have to pay for something else’s mistake. That’s why it’s so important to get a Canadian Vehicle History Report to make sure any car you’re thinking of buying is free and clear of any liens.

 

What is a lien?

 

A lien can be placed on a car by a government entity such as a court. This happens when the owner of the vehicle or other high-value items like a boat or motorhome owes money that they have yet to repay. Liens can also be registered against cars by businesses such as garages that have not been paid for work they have done.

The purpose of a lien is to make sure that the owner of the vehicle can’t sell the vehicle without repaying the money they owe. Therefore, it’s a very important check for you to do before you even think of paying money for a used car.

It’s estimated that something like 40 to 50% of Canadian cars have a lien registered against them, so don’t be surprised to find a few while searching for a used car.

Why you should check for liens

 

If you buy a car without knowing about a lien, you could end up paying for someone else’s debt. And if the previous owner doesn’t repay that debt, the lender could come after you for the money. This is especially true if the previous owner has skipped town and is unreachable.

The idea behind a lien is that it is registered against the vehicle, and not the vehicle’s owner. This means that anyone who takes lawful possession of the vehicle after the lien is registered against it may be liable for the debt.

Even if the previous owner does have the intention of repaying the debt, it can still cause problems for you. For example, if they fall behind on their payments, the lender could seize the vehicle from your driveway. And even if they do stay current on their payments, having a lien on a car can make it more difficult to sell when you’re ready to upgrade.

So how do you check for liens on a car? Here are a few ways:

How to check for a lien

You can check with the provincial licensing authority for any liens registered against the car. This can be done via a registry agent in the province the car is registered in. You can find more information on each provincial registry office here:


 

Another way to check for liens is to get a full Canadian Vehicle History Report on this website by using our free VIN check tool below. Not only will this report inform you of any liens registered against the car, but it will also provide a wealth of other information that can help you make a purchase decision.

A full Canadian Vehicle History Report will tell you about the vehicle’s last reported mileage, accident history, service history, warranty information, how many previous owners it has had, and tons of other useful facts that can help you determine the true value of a car.

 

Reports issued by provincial registries will tell you whether any liens have been registered, but they won’t give you any of this other extremely useful information. So it’s well worth getting the car’s VIN or license plate and running a quick but thorough check with vehiclecheck.ca. Knowing your car is free of any liens, accidents, or other causes for concern will be a load off your mind when making a purchase decision.

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What to do if you find a lien registered against a car?

if you do the responsible thing and check for liens against the car before buying, you have a lot of options. The simplest and most powerful is to simply walk away.

However, you don’t need to let a lien stand between you and the car of your dreams. Depending on the amount of the lien and who it’s owed to, you may be able to use it as a negotiating tool to get the price of releasing the lien taken off the price of the car. That way, you can still buy the car without losing out on any money.

Sometimes, a lien will show up against the car that has since been released. This is especially true if the car’s owner only recently cleared the debt in order to sell the car. If that’s the case, make sure to ask the seller for paperwork demonstrating that the loan has been paid in full and that the lien has been released. If in doubt, you can check with the lender or lien holder to make sure they have no further claim on the vehicle.

How to remove a lien from a car?

 

If you find that there is a lien registered against the car you want to buy, don’t despair. It’s not the end of the world, and there are ways to deal with it.

The first thing you need to do is get in touch with the creditor who placed the lien on the vehicle. They will be able to tell you how much money is owed and what needs to be done to remove the lien.

In most cases, you’ll just need to pay off the debt that is owed and provide proof of payment to the registry office where the lien was registered. Once they have this proof, they will remove the lien from the vehicle’s record.

You may also be able to have the lien transferred to another vehicle if you’re not able to pay it off immediately. This process will vary from province to province, so you’ll need to check with your local registry office to see what the requirements are.

Once the lien has been dealt with, you’ll be free and clear to purchase the car without having to worry about any debt that might come along with it.

Final Thoughts

 

Checking for liens on a car is an important step in the used car buying process. By taking the time to do this simple check, you can save yourself a lot of headaches down the road. A detailed Canadian Vehicle History Report is an important step in making sure that your car is exactly what you wanted to be, so don’t skip this vital step.

 

FAQ’s

 

 

How do I check for liens on a car in Canada?

 

There are a few different ways to check for liens on a car in Canada. The most straightforward way is to get a full Canadian Vehicle History Report from vehiclecheck.ca. This report will not only tell you if there are any liens registered against the car, but it will also provide a wealth of other useful information about the car’s history. You can also check with your provincial registry office to see if they have any information about outstanding liens on the car.

 

What do I do if I find a lien on a car?

 

If you find a lien on a car, the first thing you need to do is get in touch with the creditor who placed the lien on the vehicle. They will be able to tell you how much money is owed and what needs to be done to remove the lien. In most cases, you’ll just need to pay off the debt that is owed and provide proof of payment to the registry office where the lien was registered. Once they have this proof, they will remove the lien from the vehicle’s record.

 

How do I remove a lien from a car?

 

Get in touch with the creditor who placed the lien on the vehicle. They will be able to tell you how much money is owed and what needs to be done to remove the lien. In most cases, you’ll just need to pay off the debt that is owed and provide proof of payment to the registry office where the lien was registered. Once they have this proof, they will remove the lien from the vehicle’s record.

 

 

DECODE YOUR VIN INSTANTLY

CHECK THE VIN OF YOUR SELECTED CAR RIGHT HERE

NEW!
CHECK YOUR LICENSE PLATE INSTANTLY

CHECK THE LICENSE PLATE OF YOUR CAR HERE