2.If you plan on scrapping a car with a mechanic lien, you will need to pay off the debt you owe to the mechanic first. A mechanic’s lien is when you have repairs or upgrades to your car, but you cannot pay them back. The mechanic will file a lien (and thus become part-owner of your car) to ensure they will be paid back for the services they ...

Posted on Mar 11, 2012. If you scrape a car with a lien you will leave a scratch, just the same as if you scrape it with a key :-) In my state, destroying or selling personal property that is subject to a security interest without permission from the lender is a misdemeanor. I just sent a potential client off to consult with a criminal lawyer ...

No, you have not "stolen" the car, you have sold it. I am also surprised the scrapyard took it without a title, which presumably the loan company currently has in their possession. The lien is now worthless as is the title, but your credit is of value. Keep paying if you can. In fact, pay the balance if you can to clear the issue and avoid ...

In your listing for the car, make sure to include the lien information. If you are able, try to sell the car locally in the location of the lien holder. After you and the car buyer have completed the sale, you can go to the lender directly to pay off the lien, upon which, they can transfer ownership of the title to the buyer.

The many impacts of having a lien on a car. When there is a lien on a car, it can affect many aspects of the vehicle ownership experience. Sometimes, it can even restrict your selling options if you sell a car with an outstanding loan. The loan provider's interests must be considered and properly dealt with in all of these areas: Insuring your ...

Typically, people junk vehicles with the help of a junk or scrap yard, but some folks like to take a more DIY approach. If this sounds like you, use these general guidelines as tips, and still be sure to check your state's salvage auto regulations to learn about title, registration, and license plate requirements.

When a car has a lien, the lienholder has a legal right to take possession of the vehicle until the loan is completely settled. This means that if a scrap yard were to purchase a car with an unresolved lien, they could potentially become entangled in legal disputes with the lienholder over the ownership and control of the vehicle.

Loan or Lien: If there’s a loan or lien on the vehicle, you must settle it before selling or scrapping the car. Contact your lender to discuss the payoff amount and any specific procedures they require. Understanding Titles and Transfers. One of the most critical documents when selling or scrapping a vehicle is the title.

Contact the lienholder. If you’re thinking about selling your car, contacting your lienholder should be the first step you take. Ask your lienholder to give you the exact amount needed to pay off your loan so you can determine how much money you need to make in the sale. If you plan to sell your car to a private party, ask your lender about ...

Here are the steps you need to take when selling a car with a lien. 1. Check to see if there are liens on your vehicle. If you’re making payments on a car loan, you most likely have a lien on your vehicle. In rare circumstances, a vehicle may have a lien on it that you weren’t aware of when you purchased it. This can sometimes occur in ...