Buying
a used car has become very common these days. There are also many
companies in the market which helps you buy a used car. However, when
you buy a used car, you must check the vehicle for any outstanding
lien.
Many
vehicles have a lien against them nowadays, as people finance their
vehicle from the lenders or bank. These people (secured party) have a
lien on the car and have certain rights, so you should check for lien
before buying any vehicle. Read on to know more about the lien and
why it is essential to check it
What
is A Lien On A Car?
A
car lien is an interest in the vehicle granted to another party
(banks, financial institution, etc.) by the owner, usually as a
security for the amount borrowed (debt) until that debt is
discharged. E.g., if you buy a new vehicle on finance from a bank
either for a full or partial amount, then the bank has lien
registered against it. The car is the security of the loan they have
granted you and if this loan is not discharged, then they have the
right to repossess the vehicle.
Importance
of Knowing About Car Lien
As
a buyer, you are responsible for any unpaid debt on the vehicle. If
you have bought a car with a lien registered against it, then the
secured party may be able to repossess the car. This is why a Vin
Search in BC
should
be done before buying.
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