Can I junk my car if I still owe on it?
Call the bank that is owed money for the car. You cannot legally junk a car unless you have complete permission and the title of ownership. You do not have the full, open title until all is made well with the auto loan company.
Can I sell my car with a lien on it?
It’s perfectly legal to sell a car with a lien, as long as you pay off the loan first. To sell a car with a lien, you have the option to sell it to a car dealer as a trade-in, or sell the car to a private buyer.
What happens if my car is Totalled and I still owe?
If your car is totaled and you still owe money on the loan, the insurance company will pay your lender for the car’s value, and you will be responsible for any remaining balance if the check is less than the loan amount.
Is a car lien bad?
Is a Lien Title Bad? On its own, a lien title isn’t necessarily a bad thing. To obtain and keep car insurance on a vehicle with a lien title, you must disclose the lienholder to the company. Once you pay off the loan, the lien goes away, and you alone are the registered owner and sole responsible party.
Why would there be a lien on a car?
A car lien is essentially an insurance policy for lenders. The car you purchase has a lien on the title until you completely pay off the car. Not only does a lien act as insurance for a lender, but a lien also allows a creditor to repossess your car if you default on your loan.
Can a vehicle be salvaged if it is a total loss?
If these vehicles already have titles, those stay in effect; however, they DO NOT qualify for salvage titles if ever deemed a total loss. For example, a vehicle older than 35 years old is not eligible for a salvage title. Other examples include certain manufactured homes, trailers, and low-speed vehicles.
Do you need a license to rebuild a salvaged car?
You’re a licensed rebuilder. You’re able to submit a registration or another document showing you’re the owner—and that you owned the vehicle before the salvage title was issued—in lieu of the rebuilder’s license. Must rebuild the vehicle to the condition it was in before it became a salvaged vehicle.
Can You junk a car with a lien on it?
You cannot legally junk a car unless you have complete permission and the title of ownership. You do not have the full, open title until all is made well with the auto loan company. Find out how much you owe them, and whether they would accept a lesser amount since the car no longer operates.
What do I need to do for a salvaged car in Alabama?
If the vehicle is uninsured or self-insured, you must fill out Section A. Provide the vehicle’s title . If you’re transferring the vehicle to your insurance company, you must properly sign it over. A lien release, IF a recorded lien on the title has been satisfied. This can be on the title itself or a separate document.