Watch for liens on used cars

Buying a used vehicle in today's marketplace can be a stress-filled process. A recent Decima survey done on behalf of CarProof Vehicle History Reports found that 43 per cent of people are concerned that a creditor may still hold a lien on the used vehicle they are buying.

Suppose you are looking to buy a used gas saver car. A lien is an outstanding debt that uses an asset like a car as security to make sure the loan/debt is repaid. For example, a bank will place a lien on a car when it has provided a loan to the consumer to pay for the car. Until the loan is paid back, the lien remains outstanding and the bank would be the first one to be paid off if the car was sold or written off in an accident. Should the car be sold before the loan is paid back, the lien remains on the vehicle and the bank still has security over the vehicle.

That means that an unsuspecting consumer could purchase a used Malibu, paying the seller's full price and then have the responsibility of paying off the loan before the bank discharges its lien. They could be required to pay the loan back and sue the previous owner to recover damages.

Therefore, ask to see a vehicle history report and make sure it checks for liens before you purchase a used vehicle. Check the Lien section to ensure there are no outstanding liens that could affect your ownership rights. More information is available online at carproof.com. ---Thanks to News Canada.