What should a dealer do if they discover a vehicle has a lien after purchase?

When a dealer discovers a lien on a vehicle after purchase, resolving the lien before proceeding with the sale is the appropriate course of action. This ensures that the dealer is acting ethically and legally. A lien indicates that there is an outstanding loan or debt secured against the vehicle, which can affect the buyer's ability to obtain clear title once they purchase it. Proceeding with the sale without resolving the lien could lead to legal complications and might put the buyer at risk of financial liability.

By resolving the lien, the dealer ensures that the buyer receives a clean title, which is essential for the buyer to register and operate the vehicle legally. This action protects both the dealer's reputation and the interests of the buyer, fostering trust and compliance with state regulations regarding vehicle sales.