What is "Perform an Ontario lien search"?

[Aero]

I was looking at the carfax report from a used vehicle Im checking out at a dealer and saw this on the report "Perform an Ontario lien search" what does it mean??

[phucyall]

As far as I know a "lien" on an item means that an item is used as a collateral for a loan. So when you are financing your car it's technically not completely your car. The bank paid the dealership and you are paying the bank back and if you can't pay they take your car. So while the ownership of the car is in your name, the bank has a lien on the car. Same goes for houses for example. If you take out a line of credit secured against your house then there is an additional lien on your house (aside from your mortgage).

[VivienM]

A "lien" is old-school terminology for what's now more generally called a "security interest". As the poster above said, that means that the "secured party" (the lender who hold the security interest) has various rights to the collateral in the event that the debtor defaults. These rights tend to travel with the collateral, so if you buy it from the original debtor, and the debtor defaults, the secured party can (usually) repossess the collateral from you.

There is a registration system so that third parties can find out about these security interests; the type of thing you're talking about is a search through the database to see if there are any outstanding security interests against a vehicle.

(Isn't secured transactions law fun? :P)

[Aero]

So its nothing to be concern about? Its just the dealer making sure that the car was ok before they took the car from the previous owner?

[VivienM]

So its nothing to be concern about? Its just the dealer making sure that the car was ok before they took the car from the previous owner?

Hmmmmmm. It's showing up as an entry in carfax, in between the usual registration renewals and the like?

[ES_Revenge]

So its nothing to be concern about? Its just the dealer making sure that the car was ok before they took the car from the previous owner?

Of course it's something to be concerned about. If there's a lien on the car when you buy it, you'll be responsible for paying back that loan (in addition to the one you took on it, if you took a loan), otherwise the car could be repossessed. The thing is you have to get the UVIP to transfer ownership in ON anyway, right? Doesn't that include a lien search?

If the car is at a used car dealer you probably don't have to worry but you never know with curbsiders and shady dealers. Carfax is probably telling you to do that check because they can't check for Ontario liens themselves (?), therefore they direct you to do one within your province, on your own; i.e. not included in their service.

[Aero]

According to Carfax

04/08/2007
Ontario
Ministry of Transportation
Central Ontario

Registration issued or renewed
Registered as
personal vehicle

Perform an Ontario lien search


04/22/2008
Dealer Inventory
Vehicle offered for sale


04/23/2008 109,339
Dealer Inventory
Vehicle offered for sale
Odometer reported as 175,965 kilometers

Here's the entry


By the way its at a VW dealership.

[ES_Revenge]

Ohhhh, okay so it's not telling you to performa a lien search, it's saying one was performed. Yeah that's normal. Anytime a car changes owners a lien search will be performed so the buyer/new owner doesn't get burned on a car that has a lien on it.

[VivienM]

Odometer reported as 175,965 kilometers

That's a lot of mileage...

[Aero]

That's a lot of mileage...

Yeah, but it looks like it was maintained, regular vehicle service and its all I could afford for now LOL. Insurance is ok, for 80 dollars a month.