How to Buy Vehicle Liens at a Discount for a Business
If you need to buy a vehicle for your business, buying a used vehicle with a lien can save you money. When a consumer finances a vehicle purchase through a loan, the lender places a lien against the title of the vehicle until the loan is paid off. This gives the lender a legal right to reclaim the vehicle if the consumer cannot pay off the loan. By negotiating with a consumer who cannot pay off his loan and with the lien holder, you may be able to purchase a vehicle at a discount from retail prices.
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Instructions
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Search for a consumer looking to sell a vehicle with a lien. Your best source for a car is online through a used-car website, such as Cars.com or usedcars.com. Search for a seller who lists that she has not paid off her car loan. If your vehicle is specialized for your industry, you may need to directly contact companies in your industry as there is not as large an online marketplace.
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Contact the seller and ask for the details about her vehicle loan, such as the remaining balance on the loan and the lender holding the lien.
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Contact the lien holder and express your interest in buying the vehicle. Let the company know that the current owner does not want to pay off the remaining loan and wants to sell you the car.
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Offer to buy the vehicle, but request a lower price than the current loan balance. If the lender is concerned about having to deal with a returned, unpaid vehicle, it may offer you a discount. The lender will be more likely to give you a discount if you can pay off the entire loan in cash instead of financing the purchase through your own loan.
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Pay for the vehicle and wait for the transfer of the vehicle title. The lender may need a few weeks to process the payment. Take the vehicle title to the department of motor vehicles and register yourself as the new owner.
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