Overhaulin'

What do I need to do in order to sell a car that has a lien on it?

What do I need to do in order to sell a car that has a lien on it? I originally leased the car. At the end of the 4 year lease I purchased the car via a loan through Bank of America. When I purchased the car I received the title. The title list B of A as the First Secured Party and list me as the owner. At the bottom of the title it states Total Liens 1. I paid the car off last week and now want to sell the car. Is there anything I need to do to prove to a potential buyer that the car is paid for? Do I have to wait to receive something from B of A stating the car is paid and full and the lien released?

Public Comments

1. Once you got the loan paid off, Bank of America should have sent you a Lien Release letter. You need to take that Lien Release letter to your state DMV and ask them to clear the Lien off your title (you will probably need to fill out some forms, pay a processing fee, and turn in your existing title with the lien on it). The clear title with no liens on it should arrive by mail after a few weeks. You then need to make sure the new owner applies to the DMV to change the title to his name once he pays you for the car in full. If he never went to the DMV to do this, you are still on record at the DMV as the owner of the car. So make sure. Also, don't forget to take your license plates-- The guy buying the car needs to have his license plates ready to put onto the car. Hope this helps.
2. They should send you a letter stating paid in full, if not ask them for one.
3. Bank of America will send you either a state form or a letter stating that the lien has been paid in full. They will also probably send you a copy of the contract, that is also stamped paid in full. Depending on how you paid the car off, personal check or certified check, cash or bank check will depend on how fast they send you the lien release. Sometimes it is only a few weeks, other times it could take a month or so! You may be able to go to your local branch of Bank of America, and if it is in their computers that the vehicle has been paid in full, they may be able to stamp your title paid in full. But that is up to the branch office. But, you need something from Bank of America stating that the lien has been paid in full in order to sell the vehicle. In most, if not all states, you do not have to change the title, it will only cost you money, the lien release form or letter will suffice for the new owner to get the title in his name. Joeshmoo is right about the plates. Do not let the plates go with the car. It is the new owners responsibility to plate the car. And you are responsible for the plates, and can be held responsible for anything that may happen to the car. I suggest you turn the plates into the DMV as soon as you sell the car, and make sure you get a receipt for them. Once it is sold, immediately cancel any car insurance you have on the car. Turning in the plates and canceling the insurance will relinquish any responsiblity to the car. So if the new owner never transfers the title or registers the vehicle, and something happens like a ticket or an accident, you will not be held responsible.