How to Find Out If There Is a Lien on Your Car

Some used-car dealers offer trade-in deals that include paying off outstanding debts for the former owner in exchange for selling them a more expensive car. Some of these dealers mark up the used car to cover the lien on it. Buying a used car without an attached lien may be a less expensive option. But first you have to find out if the car has a lien on it.

Instructions

1

Examine the title before purchasing the car. The car's title should contain any notice of outstanding liens.

2

Compare the name on the title to the name of the seller. If the previous owner is listed, rather than the dealership, there may be outstanding liens on the car.

3

Check to see if the title has an attached lien release. This is a document issued by the lien holder that states the lien has been paid off.

4

Write down the vehicle identification number (VIN). Each car's VIN is unique. Every time a vehicle is taken to a mechanic for repair or maintenance or is involved in a transaction, the number is recorded. You can use it to find out the vehicle history.

5

Visit your state department of motor vehicles to get the vehicle history or check with a company such as Carfax or Experian for a vehicle history report. This report will include any outstanding liens on the car.