For most consumers, purchasing a vehicle without a vehicle’s title can cause a lot of anxiety and apprehension. The preferred process for the average new buyer is having a title to transfer ownership of a vehicle. The California DMV allows for the ownership to be transferred in a few different ways other than a title. One of those ways is lien sale paperwork.
If you are trying to sell a car that has lien sale paperwork it’s important to understand your paperwork so that when objections occur while you’re selling the car you will know how to handle them and give yourself a greater chance of selling a car.
A lien sale happens when a mechanic, body shop, self-storage facility, or tow yard sells the vehicle to recover unpaid service fees, storage fees, tow fees, or repair fees. Additionally, an individual can process a lien privately in situations where the vehicle was abandoned. A vehicle that is being sold with lien sale paperwork went through this process and allows the “lien holder” (the person or entity that conducted the lien sale) to legally sell your vehicle to recover its costs. A lien holder has a legal claim to sell the car.
Vehicles that have gone through a legal lien sale do not have to be concerned with the following:
A Loan balance
Payoff amount (payoff balance)
A pending car loan
There is usually isn’t a car dealership involved or concerns with “negative equity” to be concerned with.
Usually, these types of sales are done by a private buyer.
There usually isn’t a down payment or concerns about a new car loan. It’s the buyer’s money that usually finalizes the sale.
As the buyer of a car with a lien on it the vehicle is usually sold under Kelley blue book value and you can get it for less money than you would if you had to buy the vehicle through an auto dealership.
The buyer pays for all of the registration fees and taxes for the new car title.
Usually, the buyer paid far less money than the market value of the vehicle, and can therefore make more money when they sell a car.
As the seller, the pool of potential buyers becomes smaller because many buyers are dissuaded because there is no title available.
A local lender will not issue a loan for a vehicle with lien sale paperwork. Again, the pool of potential buyers is smaller because of this.
There is almost never a scenario where a brand new vehicle is sold with lien sale paperwork in hand – therefore, most vehicles that are being sold with lien sale paperwork are older vehicles.
There is a potential for a vehicle to owe money from a remaining balance of unpaid registration fees.
As the seller of a car with lien sale paperwork you must provide the following:
The Reg 168A
The bill of sale from the lien holder (individual or entity) to the new car buyer
Certificate of mailing and certified mail receipts
The sale and title transfer of a vehicle with lien sale paperwork are very straightforward. The transaction itself needs to occur at the DMV – registration services are NOT authorized to process these transfers through the BPA (business partner automation) program:
It starts with the buyer taking the paperwork over to the Department of Motor Vehicles, aka the DMV
Pay the fees
The buyer will get a new registration, a new set of plates, and a new title.
The seller who sells the car must give the new buyer a bill of sale and issue a release of liability.
Here are my top 5 pro tips to have a better selling experience:
Calculate the fees for the buyer prior to them coming to check the vehicle out – this simple calculation can be done on the DMV’s website or you may contact registration services like Quick Auto Tags to price it for you. By doing this you will ensure that the buyer is fully aware of what they will be paying – no surprises.
As the seller, you are the responsible party to provide a valid smog certificate over to the new buyer, so make the process easy for them and have it handy.
Make sure that you have a bill of sale from yourself to the new buyer in addition to the documents that have been mentioned previously. You may click here if you need a bill of sale
Any time you are selling a car always file for notice of release of liability – you may click here to file one.
If you purchased a vehicle from out of state, or are bringing in your vehicle from another state - you must register it within 10 days. Let us take care of the process for you from beginning to end.
If you've lost the title to a vehicle you purchased and need help getting it into your name - we can help you fix this problem. These are called bonded titles & we can help you get these fixed for you.
Has your customer not paid you for your services? Has a vehicle been abandoned on your property? Has a customer disappeared on you with no way to get a hold of them? The lien sale process is the right solution for you!
If you’ve lost your car title, it can be a huge hassle. You may have to wait weeks or even months before getting the new one in the mail. It doesn’t have to be this way though – we make replacing your car title easy and fast so you don’t have to worry about it anymore.
If you are looking for DMV services, call (951) 409-9091 to get your suspended registration cleared. We offer the best service at reasonable rates!
Too late or too soon to file for a PNO? Affidavit of Non-Use is the right option for you
If you don’t plan on using your vehicle make sure to file a non-op on it as soon as possible.
Having your address updated on your registration card is very important
You can add your newly acquired vehicle for your PFR account through us.
Apply for Disabled Vet License Plates
If you have a vehicle that has fallen off of the DMV system our staff can help you re-introduce this vehicle into the DMV record
For vehicles with Manufacturer Statement of Origin (MSO) or out-of-state title
Registration for brand new vehicles entering California
Order special/personalized plates
Permanent Trailer ID (PTI) transactions, such as boat trailers, van trailers, horse trailers, or toy haulers
Do you need to reassign a plate to your vehicle? Our staff can do this for you within minutes.
If your bank requires that they be on the title listed as a legal owner our office can handle this transaction for you quickly in our office.
Submitting an NRL as soon as you sell a car is absolutely imperative to avoid any legal issues or headaches. Our team can help you get this done ASAP.
When your transaction at the DMV is not complete, you will need a permit to operate your vehicle.