urbazon · Getty ImagesBuying a car with a lien means the seller still owes money on the vehicle, and the lender still has a legal interest in it. But should you do it, and how do you know when it's worth the risk?Melanie Musson, an auto finance expert with AutoInsurance.org, said that a buyer shouldn't be afraid to consider a vehicle with a lien. If the buyer decides the vehicle is priced fairly and meets their needs, they can take steps to purchase the vehicle safely, resulting in a straightforward title transfer.Here are the considerations she considers essential to purchasing a vehicle with a lien on it.1. Get the Payoff AmountThe first thing the buyer should do is request a 10-day payoff from the seller. Musson said that the seller will need to request the payoff information from the lender and share it with the buyer. Then, the buyer will be aware of how much money they'll owe the bank in the sale and how much will go to the seller.AdvertisementAdvertisementFor example, if the seller is selling the car for $25,000 but owes $18,000, the lender will get $18,000, and the seller will get $7,000.2. Pay the Lender Directly"The easiest way to handle the transaction is for the buyer and seller to meet at the bank holding the lien," Musson said. "Then the entire process can be completed in a single meeting. The buyer pays the lender, the lender releases the lien and gives the seller a new title. The buyer then pays the seller the balance."However, Musson pointed out that some lenders don't have local branches, and many states use electronic titles.If you can't complete the sale at the lender's office, Musson said a title company can handle the process. The buyer gives the money to the title company. The title company pays the lender, pays the seller and handles the new title.AdvertisementAdvertisementIf the buyer is getting a loan to purchase the vehicle, the lender can ensure the right parties receive the right amount of money, she said.3. Get the Necessary PaperworkBefore the buyer drives away in the car, Musson said they should get a bill of sale and an official lien release or payoff statement from the lender to prove that they purchased the car and that it has been paid off. She also said to ask for the title if it's available at that time.Musson added that the buyer will need temporary tags before taking possession of the vehicle. She said that the current license plate belongs to the previous owner, not the buyer, so upon purchase, you will need to remove the plates from the vehicle and attach your temporary tag.4. Know the RisksA lien can become a major problem if the seller is paid before the lender is.AdvertisementAdvertisement"If the lien is not released, the car isn't actually yours," Musson said. "The seller could keep the money and keep the car."Musson also said that if the car is in your possession, you could still be responsible for paying off the lien if the seller doesn't. This is true even if you paid the seller the full purchase price.5. Watch for Red FlagsSome sellers are honest but don't understand the payoff process. Others may be trying to avoid paying the loan."If the seller isn't willing to meet at a bank or title company, that's a red flag," Musson said. "If the seller doesn't get you the 10-day payoff amount, it could be a red flag. If the buyer wants you to pay them cash while assuring you they'll take care of everything, that's a bad sign."AdvertisementAdvertisementOverall, a car with a lien isn't always a deal breaker. However, you should treat the purchase with caution.This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.More From MoneyLion:Looking to Buy Investment Properties? These Loans Offer Fast FundingSave Up to $1,100 on Car Insurance in MinutesForbes' Most Trusted Gold Company of 2026 — See Why Investors Are Taking NoticeCash In Your Unused Gold at Today's Top Prices