The car I'm looking at has a lien. What do I do?

Kinja'd!!! "TheBaron2112" (TheBaron2112)
01/24/2015 at 12:27 • Filed to: None

Kinja'd!!!0 Kinja'd!!! 12

So I'm looking at a Mercedes W123 300TD wagon. It's in okay shape, but I spoke with the seller again today and the condition is a little worse than I thought.

But aside from all the issues with it (none mechanical) the seller said that there was a lien on the car.

What does this mean? What does it mean for the possibility of me buying it? What about the title?

Also, I found this Merc too. It looks nicer. But it's the wrong color brown and the headlights aren't my favorite.

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DISCUSSION (12)


Kinja'd!!! PowderHound > TheBaron2112
01/24/2015 at 12:29

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lien means he is making payments on it and the bank owns it. Seems odd that there is a lein on that car.


Kinja'd!!! Nibby > TheBaron2112
01/24/2015 at 12:30

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Lien? That ain't anything good. For all we know, the seller could be... lien to you.


Kinja'd!!! TheBaron2112 > PowderHound
01/24/2015 at 12:31

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Well, he explained that they did it to finance an expansion of their coffee shop. So that's why it exists. It wouldn't be my choice either, but whatever.

So it has to be paid off before it's re-titled to them and able to be sold to me. Correct?


Kinja'd!!! MylesD > TheBaron2112
01/24/2015 at 12:32

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There's nothing wrong with him having a lien, assuming his asking price is going to pay it off. Title transfer is going to be a little more complicated. As long as you follow the legal process for getting the title in your name and you have some sort of bill of sale, you're fine.


Kinja'd!!! TheBaron2112 > MylesD
01/24/2015 at 12:34

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Right. His asking price is $4000. I think that's too much, and he said he was negotiable, but knowing that the lien exists, he may have a bottom line closer to that $4000 than I want it to be.


Kinja'd!!! PowderHound > TheBaron2112
01/24/2015 at 12:37

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you should be able to take over the lien. Pay it off. Get it titled in your name. I haven't dealt in liens before but I think that's how it works


Kinja'd!!! MylesD > TheBaron2112
01/24/2015 at 12:37

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Exactly. Also, how long has he had it priced at 4k? If you know the answer and it's either close or over a month, he's likely made another payment and that wiggle room is helpful for your side of negotiating.


Kinja'd!!! TheBaron2112 > MylesD
01/24/2015 at 12:45

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That makes sense. I contacted him at the beginning of January though.

And he said that he bought it 3 years ago for $4000. So I don't know. It's seeming a bit overpriced and that he overpaid.


Kinja'd!!! Nibbles > TheBaron2112
01/24/2015 at 12:53

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Call the lienholder, get a 30 day payoff. Take that number into consideration when purchasing. You can work with the lienholder to have it transferred to you or require that the lien be paid before you place any money on the car. The latter is the better idea; they may just be trying to offload the car because they can't afford the lien.


Kinja'd!!! chuck07 > TheBaron2112
01/24/2015 at 13:08

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The lien is odd. Even if he did it to finance the coffee shop expansion, I doubt that he was able to borrow much more than 2k off of it. Seems like a bad business proposition.

If the one you posted a link to runs well I would go for that one instead.


Kinja'd!!! TheBaron2112 > chuck07
01/24/2015 at 13:26

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Yeah, I'm waiting to hear back from that guy. I wish it were that sand color instead of that brown. But brown diesel turbo wagon, I guess.


Kinja'd!!! BobbyMike > Nibbles
02/17/2015 at 14:45

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Exactly. We did this with our Nissan Frontier. Lien was held by our local credit union. We met the buyer at the credit union. They paid off the lien, gave us the balance and they received the now lien free title.