OMVIC Practice Test

True or false: A customer should do a lien check on a vehicle they plan to buy from a dealer.

1. True

2. False

3. Depends on the dealer

4. Sometimes true

The correct answer is: True

Performing a lien check on a vehicle before purchasing it from a dealer is essential for several reasons. A lien check reveals whether there are any outstanding debts or financial claims against the vehicle. If a vehicle has a lien, it usually means that the previous owner borrowed money to purchase the vehicle and has not fully repaid that loan. This could lead to significant legal complications for the new owner, including the possibility of having the vehicle repossessed by the lienholder. Additionally, conducting a lien check ensures that the buyer is aware of any potential issues that could affect their ownership rights. If a vehicle is sold without clearing the lien, the buyer could find themselves responsible for the debt or facing legal action from the lienholder. Therefore, it is a crucial step in the purchasing process that protects the buyer’s investment and legal standing. While some dealers may handle title and lien issues on behalf of the buyer, it is always best practice for the buyer to verify this information independently. This proactive approach fosters transparency and aids in making a well-informed decision, ensuring that the buyer is not inadvertently taking on someone else's financial obligations.