Some junk car buyers purchase vehicles with liens, but the lien must be satisfied before or during the sale. A lien means a lender has a legal claim on the vehicle. You can’t transfer clear ownership until the loan is paid off and the lien is released.
How lien sales typically work:
- Get your loan payoff amount from the lender
- Get a quote from the junk car buyer
- If the offer exceeds the payoff, proceeds pay the lender first
- If the offer is less than payoff, you pay the difference
- Lender releases the lien and title transfers to buyer
Example scenario:
- Loan payoff: $800
- Junk car offer: $600
- You pay: $200 to the lender
- Lender releases lien, sale proceeds
Challenges with lien sales:
- Coordination between you, buyer, and lender takes time
- Some lenders are slow to release liens
- Negative equity means you pay money to sell the car
- Not all junk car buyers handle lien paperwork
If you owe more than the car is worth, selling may not make financial sense. You’d pay out of pocket to get rid of it. In some cases, voluntary surrender to the lender or negotiating a settlement works better.
Junk Car Medics works with lien situations in many cases. Contact us with your payoff amount and vehicle details to explore options.
