Asked by Lindsey Mar 18, 2019 at 04:52 PM

Question type: Car Selling & Trading In

I still have a lien on my vehicle how does
selling it work when I owe more on the
vehicle than I’m selling for?

2 Answers


Your lien holder should issue you a certificate of title in lieu of an actual title, which you can sign over so that your buyer can at least obtain new tags, then once you pay off the loan balance you can transfer the title to the buyer. Check with your lien holder as to the process for selling the car and expected time frame for obtaining a title once it's paid off. The buyer needs to be aware of the fact their is an outstanding lien on the car so they know there will be at least a 30 day gap from paying for the car and getting a title. Again, the certificate if title can be signed over to the buyer to get temp tags/registrations (depending on your state).


Or you can read this link: https://www.autotrader.com/car-tips/how-sell-car-if-bank-has-title-215870

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