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One question for anyone who knows the inner workings of DMV......

When you register a car, there is a spot on the registration form to put the lienholder, if there is one. Does DMV punch the VIN into some huge database somewhere to see if there is lien on the vehicle?

For instance, say you bought an old car for $5,000 and for some reason, you sell it for $4,000 a few days later; you owe the mob some money :( , or they'll break your kneecaps. Will DMV be able to see that there is a lien still on the vehicle, (because the $4,000 you got will not pay off the $5,000 loan, even though you are just going to pay off the remainder of the note to keep you credit good), or is it completely transparent to them??
 

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One question for anyone who knows the inner workings of DMV......

When you register a car, there is a spot on the registration form to put the lienholder, if there is one. Does DMV punch the VIN into some huge database somewhere to see if there is lien on the vehicle?

For instance, say you bought an old car for $5,000 and for some reason, you sell it for $4,000 a few days later; you owe the mob some money :( , or they'll break your kneecaps. Will DMV be able to see that there is a lien still on the vehicle, (because the $4,000 you got will not pay off the $5,000 loan, even though you are just going to pay off the remainder of the note to keep you credit good), or is it completely transparent to them??
I don't work for the DMV, but have bought and sold cars with liens. The lien holder (ussually a bank) has possession of the title until the lien is settled. That title has the owners name and the bank under lien holder. When the loan is settled, the bank will turn over the title, with a statement the lien is settled, to the owner. the owner then uses that to sell the car and the DMV will issue a new title, with or without a lien, to the new bank or new owner respectivly.
You can't sell the car without the title, so the bank is protected.
 

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.....and what if the car is 38 years old with no title?
Some states don't issue titles on vehicles after a certain time period, some are cut off at 10 years. They use transferable registration to transfer ownership. I suppose if there is a lien, you do not get a transferable registration card, just a registration card.
BTW, Mainstream banks will not issue loans on older cars, too risky
 
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