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How to Junk A Car with A Lien? Your Ultimate Guide!

How to Junk A Car with A Lien? Your Ultimate Guide!

If you're looking for how to junk a car with a lien, your options are going to be very limited. Dealerships might accept your car, but they won't pay you as much. Private buyers won't buy a vehicle with major problems, let alone with a lien. Therefore, your best option would be cash cars buyer as long as your quote is equal to or higher than the remaining lien.

Auto Repairs Are EXPENSIVE

Many people rely on liens to buy their favorite vehicles to separate the payments across a long time and still get the best car. However, there are some instances where these liens become a hassle and prevent people from doing anything to their vehicles, including selling them.

Things get more complicated if the vehicle has only got major problems and is junk. While there are ways just to junk your car, these ways will not be applicable if you're trying to junk a car with a lien. However, there is still some hope, and you can still get out of this car without any hassle if you follow the right procedure.

This article walkthrough through a step-by-step procedure on how to junk a car with a lien. It highlights your different options and gives you an idea about which option is the vessel tone that once caused you any hassle.

How to junk a car with a lien? Your ultimate guide!

Any vehicle with a lien will have certain restrictions that prevent you from selling it. In other words, your lienholder or the auto loan lender technically owns the vehicle, and you won't be able to sell it unless you pay off the entire loan. However, there are many instances where people get to a point where they can't keep the vehicle and need to get rid of them knowing that they have some lien.

In general, if you try to sell a car with a lien, you can work out a plan with a potential buyer and coordinate with the auto lender to transfer responsibilities to the new buyer. However, if you're looking for how to junk a car with a lien, things get very complicated and hard. However, if you follow the following steps, you shouldn't have any problem junking your car even if it has a lien:

1.    Get in touch with the lienholder

The first and most critical step in junking a lien vehicle is to have a conversation with the lien holder. Different policies depend heavily on the loan lender, which means that not every lien holder will accept the same process and provide you with the same flexibility.

When you talk to the lienholder, it is important that you get an idea about the remaining amount you must pay off and whether they accept transferring ownership to a new buyer because even the new buyer needs to go through a process to confirm that the lien holder accepts them.

2.    Pay off the loan before selling

Before discussing your options about junking your car with a lien, you might want to consider whether you are willing to pay off the loan before moving forward. If you don't already know, it's going to be very limited for you to find any buyer who accepts your car if it has a lien, and things get more complicated if your car is not working.

Therefore, if you could take care of the remaining money in the loan, it would be a great idea to save you a ton of hassle. However, if you got to a point where you can't also afford this, then you'll need to discuss with some of the potential buyers who might accept your car knowing all this hassle.

3.    Understand your options

If your vehicle has a lien, it means that your options will be valued limited, and if your vehicle is a junk car, your option will be further limited.

Let's take a closer look below at some of the options that you might have considered the main pros and cons of each option:

·       Dealerships

Dealerships are known as the first and number one option for anyone trying to sell a vehicle with a lien. This is because dealership salespeople have a good understanding of the required paperwork, and they have strong relationships with most lien holders, which means that they can have a good workaround.

However, when we're talking about a junk car, not all dealerships will accept it. In other words, unless your car is highly demanded around your area, dealerships won't be interested in it. The other thing to think about is that dealerships won't pay the top dollars because typically when you trade in a car or sell it's a dealership, they will underestimate it. After all, they'll have to take care of physical lots and other fees that they subtract from any transaction through their dealership.

·       Private buyers

Private buyers are typically looking for a vehicle that runs at a good price. So when you're coming asking them to buy a vehicle that has a lien and doesn't run, it's very unlikely that you'll find any potential buyer.

However, this doesn't mean that you don't want to try because many mechanics or other enthusiasts are looking for project vehicles and are willing to pay for you if you're selling them as a project car. However, keep in mind that those people you might not accept the only hassle that could go through dealing with the lien holder, and if you owe a ton on this car, it is unlikely that you'll find any potential private buyer.

However, if you still would like to give it a try, you can try classified websites like Craigslist or eBay Motors and recently offer up and Facebook marketplace.

·       Cash cars buyer

Cash cars buyer is one of the fewest companies that guarantee to buy any vehicle. So whether your car has major mechanical problems or is missing a title, you always find an offer, and cash cars buyer can take care of it.

However, it is critical to note that if you're trying to sell a car with a lien to cash cars buyer, there is one consideration to consider: the quote. Cash cars buyer will accept your car despite its condition if your proposed court is close or more than your vehicles remaining lien.

We won't have any problem buying your car if it's not working or has major problems. For example, if your car is not running or it's been sitting in your backyard for years now, we always accept those cars and consider that every vehicle has value no matter what.

Thus, whenever you're trying or looking for how to junk a car with a lien, cash cars buyer, it would be your best option considering what we mentioned in the mean cones of each previous option. Cash cars buyers won't have any problem except your car. We will provide you with proof of the remaining lien and confirm that it's below the offer.

Before you even ask, our offers represent the maximum money your vehicle can make around your area. We utilize the most advanced technology to review the most recent transactions around your area and compare your vehicles' characteristics. Once we get it quotes, we typically generate within 30 seconds only!

You can try it now, visit our main homepage, and click on the get an instant quote button. You can also give us a call at 866-924-4608. Our offers are free and fast and won't take you much time to get an idea about whether you should proceed and move forward with cash cars buyer or not.

4.    Finalize the deal and get paid

Depending on what option you decide to go with, you also need to ensure that you sign all paperwork and confirm that you're no longer liable for any remaining lien on the vehicle. We want to make sure that no legal components could put you in trouble after selling this car.

Therefore, you must work with your lienholder to confirm what paperwork needs to be signed so you can sell the car and free responsibility.

Once it's time to get paid, you'll need to discuss the different payment options with the potential buyer. Most auto experts recommend getting paid in cash, especially if you're trying to junk your car because cash payments are the safest. Otherwise, if you got paid in checks or money orders, you want to meet with the buyer at their banks to confirm that the check goes through.

5.    Cancel the insurance

Once you sell the car, it is critical that you cancel in terms because who wants to continue paying for a car that he doesn't own? The insurance company would appreciate this information and might provide future discounts for your new vehicle.

Why is it hard to junk a car with a lien?

To help you answer this question better, it is also important to understand why it is hard to sell a car with a lien in the first place, even if your car is in good condition.

Most potential buyers don't want to deal with a lot of hassle, especially related to paperwork. Private buyers are typically nervous about dealing with strangers. They prefer to complete the process without any remaining hassle related to legal components, including those related to loans and liens.

In many instances, the lienholder might not even accept the new buyer. It will run a credit check to confirm whether the buyer is qualified for transferring the lienor their ownership. That's why unless the buyer has a very high credit score, the process might not be possible. Even those with very high credit scores won't want to deal with this hassle, and less there is some benefit to them which means that you might want to drop the price significantly to encourage them except your vehicle.

Imagine when your car is not in good condition and just a piece of junk; why would private buyers waste their time trying to buy it? Even if your car is junk and does not have a lien, it would be very limited to find a potential buyer, whether this wire is dealerships, private buyers, or any caught removal companies. Therefore, don't be surprised to hear that you'll run through a lot of hassle to sell this car.

1.    How about parting out your car?

The other thing to think about is that if you didn't find good luck selling your car or junking it, you might want to consider parting it out. Even if your car is not in good condition, there are still some valuable components that you might not be paying attention to. For example, if you know that the engine is blown out, it doesn't mean that the transmission is not in good condition.

Therefore, consider checking the different components around your car and check their current prices. You can sell those components separately and post them on websites like Craigslist or eBay motors and make some money out of it. Consider selling the fenders, GPS, bumpers, seats, windows, etc.

Note that before you move forward with parting out your car, you still need to confirm with the lien holder, and you'll still be responsible for paying off the remaining lien, but if you could make some money, that could cover the lien and, that would be a good idea.

Final thoughts

When you're dealing with a remaining lien on your car, it gets very complicated and hard for you to sell your car unless you agree with the lien holder. Unfortunately, sometimes it gets extremely critical if you're trying to junk a car that has a lien because your options will be very limited, and most buyers won't accept your car.

The good news is that cash cars buyer will still buy your car if our code is equal or greater than your remaining lien.

If you're planning to sell your car today as of 2021-2022, cash cars buyer is one of the best options that guarantee to remove your car! All you need to do is reach out to our customer service at 866-924-4608. We are willing to provide you with all details and an instant quote that won't take any time or effort!

Our process is one of the easiest, simplest, and fastest car selling processes in the nation, which includes three simple steps:

  • Describe your car
  • Receive our instant offer and accept it
  • Get your vehicle removed and receive your cash payment on the spot!

Our offers are free and fast! So, give it a try today!