Reasons You Should Check For A Lien On Your Car
A car can also have more than one lien on it. According to CARFAX, 40% to 50% of Canadian vehicles currently have a lien on them. One of the most common scenarios is when a driver borrows a loan to buy their vehicle and the lender uses the car’s title as collateral or security until their debt is fully repaid.Īs long as the debt is active, the car will have a lien registered against it, which means the lender still co-owns it’s title and has the legal right to repossess it if the driver doesn’t make their loan payments. If a driver finances a vehicle through a dealership, garage or lender, like a bank or private company, the party that they’re borrowing from will have an “interest” in the car. Keep reading to find out what a lien is and how to check if your car has one on it. Prior to buying a used car, another very important thing to confirm is whether it has any liens. That said, there are still plenty of things to worry about when it comes to pre-owned cars, such as condition, mileage and previous accidents. Not only are sales prices lower in general, registering and insuring used vehicles is often cheaper. Since a new car can cost a pretty penny, buying used is a lot more affordable for many Canadian drivers.
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