Overhaulin'

Selling car to third party with lien?

I would like to sell my car for which I own the title to my friend. Since it is a old car, no bank is willing to give loan. I would like to place lien on this car till he pays up in full. How do I place lien on the car? I am planning to move out of the country permanently and I may not be present physically in the country when he pays in full. After he pays off, how should I release lien on the car?

Public Comments

1. Bad idea, you'll never get the money! Sell it to someone who can afford it!
2. This might not be a smart move on your part simply because of your absence.You don't need a lien,you have the title.The buyer cannot do anything(i.e. sell,trade)legally w/o the title.If he stops paying you'll have to hire someone to go and "repo" your car.If he crashes or somehow damages the vehicle to where it cannot be driven or operated in any way,I asure you he'll stop paying,plus the liability insurance will not cover any damages incurred to the vehicle.I believe your best bet is to sell him the car outright,that way you have no worries at your end and he can do whatever he wants on his.When you're on the other side of the world trying to hunt someone down for a car payment,its going to cost you more $$!Good luck.
3. very bad
4. If you absolutely insist on selling him the car, suggest to him that he ask the bank for a personal loan - not an auto loan. If he has good credit, he should be able to get one on his signature at his home bank. If he has a savings account, he is permitted by law to borrow up to 90% of the balance in the savings account, with the bank holding the account book as collateral. The bank cannot refuse to allow him to borrow against his savings. If he doesn't have a savings account, perhaps he has other collateral he can pledge if necessary in order to get a personal loan. You do NOT want to be leaving the country with someone owing you money for a car. No way will you ever get what's due you if there are any problems; even if you do, you will spend more for legal representation, etc. than you will recover.