Purchasing a vehicle with a lien

leungsta

Well-known member
I have a lot of experience buying and selling cars, but this would be the very first time I attempt to purchase a used vehicle with a lien.

Cost of vehicle: $21,000
Lien: $15,000 (based on what the owner is telling me)

The owner owes money to VW Credit Canada Inc, so it won't be as easy as walking into a bank and ensuring my bank draft gets applied directly to the remainder of the loan. I've done some research and the best possible procedure I can come up with would be to prepare two separate bank drafts (1. Covering remaining payout of $15k on the lien payable to VW Credit Canada and 2. Remaining $6k payable to the owner). For bank draft #1, I'd go to the VW Credit Canada office with the owner and hand them the bank draft to cover the lien, get confirmation that it has been fully paid, then head to SAAQ for ownership transfer?

Has anyone ever done it before? What is the best/safest possible procedure to follow so that the buyer (me) doesn't get stuck with the lien?
 
That's the exact procedure, it's pretty simple, I did that with my last car. You have to call vw finance or vw Canada and get the exact amount that is owed on the car.
Then you get the money in wtv way you prefer.
You go to the vw offices in ville st-laurent, get a paper confirmation that the car is fully paid off and then go to the SAAQ to do the transfer
 
That's the exact procedure, it's pretty simple, I did that with my last car. You have to call vw finance or vw Canada and get the exact amount that is owed on the car.
Then you get the money in wtv way you prefer.
You go to the vw offices in ville st-laurent, get a paper confirmation that the car is fully paid off and then go to the SAAQ to do the transfer

I called VW twice today and they wouldn't freely give me the payout amount on the car. They said that the owner should call them and then they will send him a letter in the mail showing the updated balance left. As for the confirmation paper, they said that only the owner would get the release form stating that the lien is fully paid...
 
The owner told me the best possible way would be to make one bank draft for the full amount but payable to both the owner's name as well as VW Credit Canada. That way each party stated on the bank draft signs for their own balance. I was a bit skeptical on this approach though...
 
The owner told me the best possible way would be to make one bank draft for the full amount but payable to both the owner's name as well as VW Credit Canada. That way each party stated on the bank draft signs for their own balance. I was a bit skeptical on this approach though...
I did that when my R32 was totaled. I still and 3k to pay to the bank and they insurance wrote the check In both mine and the bank name.

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The owner told me the best possible way would be to make one bank draft for the full amount but payable to both the owner's name as well as VW Credit Canada. That way each party stated on the bank draft signs for their own balance. I was a bit skeptical on this approach though...

If he's not willing to do exactly what VW is saying to do, then this is a scam and you should run away.
 
I had to sell my countryman with a lien when I moved, procedure was for purchaser to make a check for a prenegotiated amount payable to the lien holder (not the owner of the car), and I paid the balance of the lien at the same time, both myself and the purchaser where present in the bank for transparency and received a receipt for the payoff of the loan at that time, lien release letter was sent to me and I sent it to the purchaser a week or so after.
 
I called VW twice today and they wouldn't freely give me the payout amount on the car. They said that the owner should call them and then they will send him a letter in the mail showing the updated balance left. As for the confirmation paper, they said that only the owner would get the release form stating that the lien is fully paid...

When i did it we where the seller and the buyer both together. We went to the bank together, then to VW finance in ville st-laurent, we got the paper and then we went to the SAAQ

Its a pain in the ass, it took almost all day but it really was the safest way to do it
 
When I bought my first motorcycle, if I recall correctly, we did the transfer first and then went to the back together to pay off the lien. If the guy had been a bit smarter, he would of asked to clear the lien first.

Obviously, the amounts at play were much smaller.

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Update: Deal is off

Owner suddenly texts me this morning saying he still owes $1400 to Audi for the extended warranty and increased the price to $22k, instead of the $21k we originally agreed on.

Ridiculous. After spending $ on the carproof and hours researching how to do this transaction properly. Definitely the last time I deal with anyone with a lien.
 
Last edited:
Update: Deal is off

Buyer suddenly texts me this morning saying he still owes $1400 to Audi for the extended warranty and increased the price to $22k, instead of the $21k we originally agreed on.

Ridiculous. After spending $ on the carproof and hours researching how to do this transaction properly. Definitely the last time I deal with anyone with a lien.

Should be the opposite, liens should offer better deals since you have to convince people to go through the hassle with better pricing, sucks you got a lameass.
 
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