Junk Your Vehicle With A Lien Fast

Selling a car is usually pretty simple unless there’s a lien on the title. In that case, things can get complicated. Whether you financed your vehicle and haven’t finished paying it off, or there’s a title loan attached, understanding how to sell a car with a lien is crucial if you want to avoid legal and financial hiccups.

The good news? You can sell or even junk a car with a lien. You just need to know who holds the lien, what’s owed, and how to complete the paperwork properly.

What Is a Car Lien, and How Does It Work?

A car lien is a legal claim against your vehicle by a third party usually a lender. When you finance a car, the lender holds the lien and keeps the title until the loan is paid off. In some cases, this could be a bank, a credit union, or a title loan company.

Until the lien is released, you technically don’t have full legal ownership of the car even though you’re driving it. That’s why most buyers (and junkyards) won’t complete a sale without a clear title.

Can You Sell a Car With a Lien on It?

Yes, but there are some extra steps. To sell a car with a lien, you’ll need to:

• Contact the lienholder. Ask how much remains on the loan and how they prefer to be paid.
• Pay off the lien or arrange for the buyer (or junk car buyer) to pay it as part of the sale.
• Obtain a lien release once the balance is paid.
• Transfer the title with the lien removed.

In many cases, a company like DamagedCars.com can work directly with your lienholder to streamline this process and get the car off your hands quickly.

What If You Still Owe More Than the Car Is Worth?

This happens more than people think, especially with older cars or vehicles in poor condition. If you owe $5,000 but your car’s only worth $3,000, you’re “underwater” on the loan.

You’ll either need to pay the difference out of pocket, or roll the negative equity into another loan (if you're financing a new vehicle). If you're working with DamagedCars.com, we’ll provide a fair offer and help coordinate with your lienholder—but you’ll still be responsible for settling any remaining loan balance.

Can You Junk a Car With a Lien?

Yes, but not with every company. Junkyards and buyers typically want a clean title. However, DamagedCars.com has experience helping sellers junk a car with a lien and can often assist in contacting your lender and managing the title transfer process.

We may ask you to provide:

• Your lender’s contact info
• The vehicle’s 17-digit VIN
• Your loan payoff amount (which you can request from the lender)

If your car is totaled, not running, or otherwise beyond repair, this can be the simplest route to offload it.

How DamagedCars.com Makes the Process Easier

We’ve streamlined the car lien payoff process to help sellers move on quickly from vehicles they no longer want or can’t afford to fix. Here’s how it works:

1. Get an instant online offer by entering your VIN and vehicle condition.
2. We contact your lienholder (with your permission) to verify the payoff.
3. We handle the paperwork and towing at no extra cost.
4. You receive payment once everything clears—sometimes within 24–48 hours.

FAQs About Selling a Car With a Lien

What happens if I try to sell without paying off the lien? You could face legal consequences, especially if you misrepresent the title status. Always disclose any lien to the buyer.

Can I trade in a car with a lien? Yes. Dealerships handle lien payoffs as part of the trade-in process, but you may receive less value than selling it outright.

How do I remove a lien from the title? Once your loan is paid in full, your lender will send a lien release. You’ll take this to the DMV to get a clean title issued in your name.

The Bottom Line

If you’re asking can you sell a car with a lien, the answer is yes but you’ll need to follow a few extra steps. Whether you’re looking to junk a damaged car, trade in an older vehicle, or simply settle your loan, knowing the process upfront can save you a lot of time and stress.

At DamagedCars.com, we specialize in helping sellers navigate lien issues, incomplete titles, and tough vehicle conditions. We’ll work with your lender, handle the paperwork, and get you a fast, fair offer with no hidden fees.

Get started today and see how easy it is to sell your car—even with a lien on the title.