Here's how it generally works:
1. Pay Off the Existing Lien: Before transferring the lien, you need to pay off any outstanding amount on the lien for the old car. This includes any remaining loan payments or fees associated with the lien.
2. Obtain a Lien Release: Once the lien for the old car is paid off, you need to obtain a lien release from the lienholder. This is a document that officially releases the lien and states that you have fulfilled your obligations regarding the lien.
3. Transfer the Lien to the New Car: Depending on the jurisdiction, the lien release for the old car may include provisions for transferring the lien to the new vehicle. This usually involves completing a specific form or providing certain documents to the new lienholder.
4. Finance or Purchase the New Car: When purchasing the new car, inform the lender or dealer that you want to transfer the lien from the old car to the new one. They will typically assist you in completing the necessary paperwork and ensure the lien transfer is properly recorded.
5. Record the Lien Transfer: In most jurisdictions, a lien transfer must be recorded with the appropriate government agency, such as the Department of Motor Vehicles (DMV) or the county recorder's office. This process may involve filing the lien release and other required documents.
By following these steps, you can transfer a lien from an old car to a new one. It's essential to follow the laws and procedures in your specific jurisdiction to ensure that the lien transfer is valid and legally enforceable. If you have any doubts or concerns, it's advisable to consult with an attorney or the local motor vehicle department for guidance and assistance.
