How to Junk a Car With a Lien

by Contributor

A car that doesn't run anymore and is sitting around taking up space is often crying out to be junked. If you have a lien against the car, that makes the process of junking it a bit more complicated.

Call the bank that is owed money for the car. You cannot legally junk a car unless you have complete permission and the title of ownership. You do not have the full, open title until all is made well with the auto loan company.

Find out how much you owe them, and whether they would accept a lesser amount since the car no longer operates. Pay the amount, if you so choose, obtain the full open title and junk the car.

Tell the car loan company that they can come pick up the car. The car is officially theirs if there is a lien against it. Junk the car by providing the address and telephone number of the location where the car sits and junk the car by allowing them to come pick it up.

Send your car loan company a certified letter, notifying them that they need to junk the car. It is theirs and they need to pick it up from your property.

Haul the car to a local junkyard with the clear title, when you obtain that document. Hand the title to the junkyard official along with the keys to your car. You might make some money from donating the scrap metal.

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