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How do I get rid of a car with a lien?

There is a lien on my vehicle but I want to sell it and use the money to buy a new one. Can I sell a car with a lien?

avatar
Matthew Macgugan · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“Good question. The
lien
on your car title restricts what you can do, since you aren’t technically the sole owner.
You’ll have to remove the lien before you can sell the vehicle and transfer ownership out of your name. This means that you will need to pay off the loan before you can sell the car.
If you plan to sell your car to a dealership or other business, they will likely take care of the lien paperwork for you. You could also trade in your vehicle and roll over any financed amount you still owe to the new loan on your new vehicle. This will, however, result in higher monthly payments.
Your new car may need better insurance coverage. Use the
Jerry
app to get competitive quotes from over 50 top insurance companies in minutes.
Good luck dealing with your lien!”
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