Can You Sell a Financed Car for Junk? What You Need to Know
Junk Your Financed Car Legally and Get Top Cash Offers Today
Selling a financed car isn’t the same as selling a fully owned vehicle. You must resolve the lender’s legal claim, known as a lien, before you can legally junk or sell the car. Skipping this step can result in major legal and financial trouble. Fortunately, A+ Junk N Tow, a trusted junk vehicle buyer near you, helps owners every day to safely and legally get cash for junk cars, even if their vehicles started out with financing.
If you’re ready to move on from a damaged, totaled, or unwanted financed vehicle, the right process can turn that burden into cash—fast and legally.
Need help getting your junk car sold once your lien is cleared? A+ Junk N Tow offers fast, FREE quotes and same-day pickup services. Contact us today and turn your cleared title into instant cash without the headaches.
Get a FREE quote today!What It Means When a Car Is Financed?
When you purchase a financed car with a loan, the lender places a lien on the title as security for the loan. This lien grants them legal ownership rights until the loan is fully satisfied. Even if your car is undrivable, or repairs are impossible, the lien remains valid.
We buy junk cars in Illinois for instant cash for vehicles with clear titles, helping you move on without the burden of an unwanted financed car.
According to Experian’s 2024 State of Automotive Finance, nearly 80% of new vehicles and 38% of used vehicles are financed, meaning millions of cars on the road today are technically still owned by lenders.
Helpful Tip: If you’re unsure about your lien status, you can usually check by contacting your lender or searching your vehicle’s VIN number through your state’s DMV online database. It’s often free and only takes a few minutes.
Even if you’re working with junk vehicle buyers near me, you must legally clear the lien before selling.
Legal Requirements Before Junking a Financed Car
Before junking a junk financed car, two important legal requirements must be met:
1. Pay Off the Loan Balance:
The lender expects full payment of the outstanding balance. Depending on the loan agreement, some lenders offer “early payoff discounts” if you settle before the term ends. Always request a payoff quote valid for a specific date.
Important Fact: Illinois law requires lienholders to release a lien within 21 calendar days after the final payment is received. If they don’t, you can escalate through the Secretary of State’s office.
2. Obtain a Lien Release:
After the balance is settled, request an official lien release document. In some cases, the title system will automatically update the status of your financed car electronically.
Helpful Tip: Ask your lender if they participate in the ELT (Electronic Lien and Title) program—it can speed up title clearance without you waiting for mailed paperwork.
Without the lien release, no trusted junk car dealer in Metro Chicago can finalize the transaction legally.
What Happens If You Junk a Car With a Lien?
Attempting to junk a junk car with loan status without clearing the lien leads to real problems:
Legal Risks:
Most states—including Illinois—now link DMV title processing directly with lender databases. Any unresolved lien automatically halts the sale. Buyers offering cash for junk vehicles Bolingbrook are required by law to verify that no active liens exist.
Failed Title Transfers:
Selling a car without resolving the lien is considered a Class A Misdemeanor in Illinois if over $500 in value is involved. It can result in fines, court costs, and liability for the remaining balance.
Helpful Tip: Double-check your payoff with the lender and request a title check through the DMV. This ensures your financed car is fully cleared for legal sale.
Can You Sell to A+ Junk N Tow If the Loan Is Paid Off But Title Still Has Lien?
Yes, you can. Many owners pay off loans but forget to update their titles, leaving an outdated lien on record. A+ Junk N Tow helps sellers clear up minor title issues so you can complete the sale and get your cash without delays.
If you’re ready to move forward, sell your junk car for cash through a trusted team that simplifies the entire process.
Here’s the updated step-by-step process:
- Request a lien release letter if you don’t already have one.
- Submit the lien release to your DMV (either online or in person).
- Pay a small fee to receive your corrected, clear title—typically between $15 and $30.
- Contact our team through our online quote form or call us.
Helpful Tip: Illinois transitioned more DMV services online. You can now upload lien release documents electronically, making it faster to update the title on your financed car.
Once the lien is officially removed, we can offer you instant cash for junk cars in Metro Chicago, often completing pickup within 24 hours.
Turn Your Financed Car Into Fast Cash Today
Getting rid of a financed car that no longer serves you can feel overwhelming at first, but the solution is easier than you might expect. A+ Junk N Tow specializes in helping vehicle owners complete the process legally, quickly, and without unnecessary stress. If your loan is paid off, or your lien can be cleared, selling your car for cash is only a few steps away.
Our team is committed to making the transaction simple—from offering competitive cash for junk cars, to scheduling convenient free towing without any hidden fees.
Once your lien is cleared, A+ Junk N Tow is ready to help you turn your junk vehicle into fast cash. Get started with a FREE online estimate today schedule your same-day pickup. Selling your junk car has never been easier or safer.
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