Automotive

Lien on Used Car Bought from Dealer

  • Last Updated:
  • Jul 19th, 2011 8:49 pm
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Deal Guru
Aug 2, 2001
12998 posts
3782 upvotes
NirvanaFC wrote:
Jul 19th, 2011 12:31 pm
Called the dealer. They say that they have the lien release letter, and they'll show the letter to me when I pick-up the car today. They'll also write on the bill of sale that I will not be required to pay for any lien. Will that protect me from having to pay the lien in the future?

You have to look at the whole picture.

Will having a bill of sale indicating the lien will be handled by a dealer satisfy a judge in small claims court? Possibly.
Will having a vehicle with a lien, one you are not responsible for according to a bill of sale, cause you any headaches in the future if the lien is not cleared? Possibly.


The question is, do you want the potential headaches in the future while you attempt to prove you aren't responsible for the lien while you drive the collateral for that lien? Do you want to attempt to resell it in 5 years (when the lien hasn't been dealt with) and go through all this? It's not whether you are responsible, it's whether you want the potential headache to deal with it.
Newbie
Jul 4, 2011
49 posts
4 upvotes
Earth
Run away fast. This deal stinks of fraud. A letter will not protect you against a lien. The title must be clear end of story.
Deal Fanatic
User avatar
Jun 7, 2001
6581 posts
623 upvotes
Alberta
MrSnazzyDeals wrote:
Jul 19th, 2011 2:48 pm
Run away fast. This deal stinks of fraud. A letter will not protect you against a lien. The title must be clear end of story.

It's probably too late since the OP said he bought the car already. Not sure how much $$ has been paid...I wouldn't pay a dime more until the title is clear of all liens.

Dave
[OP]
Member
Apr 10, 2010
231 posts
9 upvotes
Toronto
Called the dealer again. They said they have contacted VW Credit Canada to clarify the situation and have received a clearance letter in fax. I called VW Credit again, and VW said the lien will get cleared in a couple of weeks. Hopefully, this is the end of the whole lien trouble. I'll go pay and pick-up the car after work today.
Deal Fanatic
User avatar
Apr 16, 2007
6811 posts
1684 upvotes
Financial District B…
NirvanaFC wrote:
Jul 19th, 2011 3:22 pm
Called the dealer again. They said they have contacted VW Credit Canada to clarify the situation and have received a clearance letter in fax. I called VW Credit again, and VW said the lien will get cleared in a couple of weeks. Hopefully, this is the end of the whole lien trouble. I'll go pay and pick-up the car after work today.

Liens that show up on vehicles for sale from most used car lots and new car lots are usually the result of administration errors and/or the financial institutions tardiness.
When a used car dealer acquires a vehicle from the auction they are as vigilant as you the buyer in making sure there's no liens on the car. The dealer probably called VW Credit about the lien and VW probably said yes we will release the lien on it but forgot to do it. VW must contact the PPSA and have the lien removed. That usually takes a few days on PPSA's end. Dealers supply a letter of lien release to you or whomever is buying the vehicle just to expedite the process.
The fault here is not the dealer but rather VW Credit dragging their feet.

A couple weeks to have the PPSA cleared is totally unacceptable. It takes less than 5mins to write down your VIN on the PPSA form and fax it to them. They will probably forget to do it again.
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