How to Check for Bank Liens on Used Cars

There is nothing worse than looking to purchase a used car only to find that the vehicle has an existing bank lien. Whether you have owned your auto for many years or are looking to purchase a used car, it's important to know whether or not there is a lien on it. After all, sometimes mistakes happen, and even after the bank loan is paid off, the lien is sometimes not removed from the auto. It's better to be forewarned than surprised when it comes to bank liens.

Difficulty: Moderately Easy

Instructions

1. Locate the VIN number for the vehicle. The vehicle identification number is a long number specific to the vehicle. Newer cars have a 17-character VIN. However, if your car is a 1980 model or earlier, you'll have fewer characters in the VIN.

2. Compile the necessary vehicle information. In order to check if there is a bank lien on the auto, you'll need to know the year, make and model of the vehicle in addition to the VIN number.

3. Visit your state's Department of Motor Vehicles website. Most states have automated basic vehicle services that allow you to renew registration, order duplicate titles and check whether or not there is a bank lien on an auto. Autoweb.com provides links to all DMV websites throughout the United States and Canada.

4. Call the Department of Motor Vehicles in your state if you don't have web access or feel more comfortable doing business over the phone. Most likely, you'll have to navigate through a number of automated options to find whether or not there is a bank lien on the car. Once you have selected the correct option, provide the person or automated system with the information compiled in Steps 1 and 2. The person or system will be able to advise if there is still a bank lien.

5. Request a lien satisfaction letter from the lending institution. If the bank lien is still on the vehicle, and the loan is completely satisfied, request a loan satisfaction letter from the bank. You will need it in order to have the lien removed from the vehicle.

References

• History of VIN Numbers
• AutoWeb.com
• How to Remove a Lien Holder from an Automobile