Not unless the creditor/lender releases the lien. So not very likely.
The lien stays with the car no matter how many times it is transferred until the lender releases it. Being as that is likely the only security/collateral the lender has to get repaid, it's not likely the lender would release the lien unless the loan is paid off or it gets security/collateral elsewhere from the previous titleholder.
The lien stays with the car no matter how many times it is transferred until the lender releases it. Being as that is likely the only security/collateral the lender has to get repaid, it's not likely the lender would release the lien unless the loan is paid off or it gets security/collateral elsewhere from the previous titleholder.
Oh. I read the question differently in your original post.
I would certainly think so. You could "sell" your car to your sibling who would now own the car (and be the new titleholder) but the car would be subject to a lien (your loan on the car).
So you would still be personally responsible for the loan on the car (because the loan is in your name) but your sibling would be forced to make payments on your loan should you ever decide to quit making payments (that is if your sibling wanted to keep the car from being repossessed).
It's possible to sell a car even if you still have an outstanding loan balance on the vehicle. This just adds a step to the transaction: closing the loan with your lender.
Call your lending institution to determine the best way to close out the loan. At the same time, ask about obtaining a lien release, which states that there are no outstanding loan obligations on your car.
If you owe more on your loan than you can readily pay prior to a sale, it's possible to close the loan and transfer ownership at the same time. For instance, Escrow.com can facilitate payment to the lien holder during a normal escrow transaction. There are other sites that offer this service; be sure to thoroughly check out any site where you might transfer your money.
If neither of these options is satisfactory, conduct the sale at the bank or credit union that holds the title or lien on your car. Just pay off the loan balance with the sale proceeds and sign over the title to the new owner. Call the lending institution beforehand to facilitate this transaction. If the lien holder is out of state, take the bill of sale to your state's Department of Motor Vehicles to obtain a temporary operating permit for the buyer. Then, once you've paid off the loan, you can send the signed title to the new owner. While this option involves more faith on the part of the buyer, you can tell the buyer that it's also in your best interest to transfer the title as soon as possible to eliminate your personal liability.
Call your lending institution to determine the best way to close out the loan. At the same time, ask about obtaining a lien release, which states that there are no outstanding loan obligations on your car.
If you owe more on your loan than you can readily pay prior to a sale, it's possible to close the loan and transfer ownership at the same time. For instance, Escrow.com can facilitate payment to the lien holder during a normal escrow transaction. There are other sites that offer this service; be sure to thoroughly check out any site where you might transfer your money.
If neither of these options is satisfactory, conduct the sale at the bank or credit union that holds the title or lien on your car. Just pay off the loan balance with the sale proceeds and sign over the title to the new owner. Call the lending institution beforehand to facilitate this transaction. If the lien holder is out of state, take the bill of sale to your state's Department of Motor Vehicles to obtain a temporary operating permit for the buyer. Then, once you've paid off the loan, you can send the signed title to the new owner. While this option involves more faith on the part of the buyer, you can tell the buyer that it's also in your best interest to transfer the title as soon as possible to eliminate your personal liability.
you cannot get another person's name on the title without paying off the loan. if you try, the person who goes to the DMV to get a new title in their name will be refused because the lien will show up to the DMV. the bank does not allow you to transfer the title to anyone unless you are paid. any title change is not allowed when there is an outstanding lien. that is the purpose of a lien.
the only way to give someone a car, pay for it, and have them on the title is like this. you would pay the balance on the car. if it has an existing lien you can't do anything but give them the car with the title in your name. however, if it is truly their car, they are not supposed to be driving under your insurance, which it sounds like you know is fraud. so, this is the only way. pay off the loan. bring your sibling to the bank with you. have them apply for the loan of what you just paid off. if they have credit, just let them be the sole name in the car. you can still make the monthly payments if you want. the bank doesn't give a shit where the money comes from as long as it is paid. that will also strengthen your sibling's credit, because even if you pay, they get credit for it.
if your sibling has issues with credit or you don't like the 1st option, both of you go and let the sibling's credit be run. if they refuse it and say a strong co-signer would get it approved, then you co-sign and request all financial things be sent to you. then, it is still not your loan, but you can pay it and put their name on the title so the car is in their name.
those are the only 2 ways for you to pay and have them on the title. they must be a part of the loan to be solely on the title when you are paying for it.
if your sibling has issues with credit or you don't like the 1st option, both of you go and let the sibling's credit be run. if they refuse it and say a strong co-signer would get it approved, then you co-sign and request all financial things be sent to you. then, it is still not your loan, but you can pay it and put their name on the title so the car is in their name.
those are the only 2 ways for you to pay and have them on the title. they must be a part of the loan to be solely on the title when you are paying for it.
