If you wish to purchase a car, whether used or new, it’s generally not easy to own. While some dreamers or car buyer’s can afford to cash in their car abruptly in full, most car idealists choose to finance their vehicle in an auto loan program in order to have it. This means that they will loan their car from a car lien service provider and pay it off over time with an added interest.
To make you understand better, a lien car is actually an insurance policy for lenders who act as a guarantor for any auto loan to make sure that they are protected if ever the loaner will default in payment. In order for the lender to get full protection from loaning a sum of money for a car loan, they use a car lien scheme. In short, the car that you own has a lien design program in its title until you completely finish the payment on it. Not only will a lien program protect the lender, but also give them the authority to repossess your car if ever you default the payment. Concisely, a lien is the right vested to the lender against the car or any property which is under a lien scheme program.
The lender is either any of the following institutions such as a bank, financial company or private party that can provide a capital amount to pay your car in cash. And even if your car is under the lien program, it doesn’t mean that you cannot drive your car. You can drive your car as if you are the owner but only that you cannot receive the title until you finally paid off the whole amount and the interest on it. And if ever you can finish your paying obligation, that’s the time that the lender will issue the title and release the lien. There are various types of liens that you may be able to establish, depending on what type of business or property you own, if any delinquent payment may happen.
Lien can also be used for a rental property program. If the tenant has not paid his obligation in paying the rental or amortization of the property, then lien policy can be enforced. If the past due rent will not be paid for any unreasonable amount of time speculated, then the lender can place a lien on their property or vehicle if any.
This kind of lien can be used if the vehicle owner will not pick his car or pay his mechanical work payment obligation within a period of time specified on the contract. Usually, the duration of the 30 day period is the given to provide ample time for the owner to claim the vehicle.
Storage lien can also be applied to any vehicle owner who fails to pick up his car in a designated period of time. This means that failure to get the vehicle in the car shop where it is confined, the lender can also administer to implement a lien on storage on it. Additionally, an abandoned vehicle lien can also be exercised on top of the storage lien.