What must a dealer ensure when selling a vehicle with a lien?

When selling a vehicle with a lien, it is essential for a dealer to ensure that the lien is disclosed and properly resolved during the sale process. This requirement is fundamental to maintain transparency and protect the interests of both the dealer and the buyer.

Disclosing a lien means that the dealer must inform the buyer of any existing financial obligations on the vehicle that may affect the title or ownership. Failing to disclose a lien can lead to legal complications, including the potential for the buyer to lose the vehicle if the lienholder enforces their claim. Properly resolving the lien entails either paying off the loan associated with the vehicle so that the title can be cleared or negotiating with the lienholder to release the lien prior to or during the sale.

This practice fosters trust and ensures compliance with legal regulations, safeguarding the dealer's reputation and the buyer's investment. Thus, this approach aligns with ethical business practices and is crucial for a smooth transaction process.