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In some cases, an online lender will require the full balance of the loan before it releases the title. If you have the cash ready to pay off the loan and then sell your car, you can do that. Otherwise ask the buyer to provide the money to the lender and have the title mailed directly to them.
How to Buy a Used Car That Hasn't Been Paid Off Ask the Seller to Pay Off the Car Loan. ... Go With the Seller to Pay Off the Lien. ... Set Up an Escrow Account for the Vehicle. ... Get a Loan to Pay the Lien. ... Have a Dealer Broker the Automobile Sale. ... Buy a Certified Pre-Owned Vehicle. ... Buy a Less Popular but Affordable Vehicle.
Selling a vehicle without a title can be challenging. Obviously, you need to own the car. This requires having a Bill of Sale. To obtain this you need to prove that the vehicle is not stolen, has no liens against it, and it might require a bonded title for insurance purposes.
It's not illegal to sell a car with a lien, and there are no penalties for doing so, provided it is handled correctly. There's one major requirement; you must pay off the loan in full and have the lien removed from the title before you can legally sell it to another buyer.
The easiest way to handle the sale of a car that has a loan on it is to hold the sale at the physical address of the lender. That will provide you with the ability to collect the funds from the buyer, pay off the loan to the bank, and transfer the title to the new owner.
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People also ask

The lienholder's statement that includes the owner's name and the year, make and VIN of the vehicle. The statement must be on the lien holder's letterhead and must state that the lienholder holds the original title and understands that the copy of the title will be used to register the vehicle in New York.
A vehicle can be registered by a driver even if that car is technically owned (and titled) to another person, a dealership (as with a lease), or a lien holder (like an auto loan lender).
Yes, you can transfer a NY title with a lien listed on it The NY DMV will accept the title and proof that lien was satisfied when the new owner/your buyer will register and apply for a title.
Yes, they can. If the registration and title show two different names, the owner (the name on the title certificate) must authorize the other person to register the vehicle by completing box 3 on the Vehicle Registration/Title Application (PDF) (MV-82) form.
When paid/satisfied, the vehicle owner receives a \u201clien release.\u201d \u2022 Owner may take the lien release to MVD or an authorized Third Party office to obtain a new title. Or, the vehicle owner may give the buyer the signed and notarized title with a lien release from the lender.

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