Can We Sell a Vehicle With a Lien and Expired Registration?
Typically, a financed car will need to have the lien released before it may be sold. If the seller didn't have the right to sell the car, it may be possible to for the buyer to sue for breach of contract and obtain restitution.
To sell a financed car with a lien on it, you must arrange for the lender to receive their money and release the lien. This is a routine process for finance companies. The buyer pays the finance company/bank directly. If the buyer owes more than the sale amount, the seller will pay the finance company/bank the difference. If the buyer is paying more than the seller owes, the seller will receive the difference. Once the seller and the finance company/bank representative sign the lien release and it is notarized, the vehicle title is clear, and it may be transferred to the buyer.
It is generally the seller's duty to celar up expired registration, but it may be used to negotiate a lower price wit the buyer. We suggest contacting the DMV to inquire about specific requirements in your situation.