what is lien release on a vehicle

A lien release on a vehicle is a document that confirms that a lien on a vehicle has been removed and the vehicle is free and clear of any liens. A lien is a legal right that a lender has to the financed vehicle until it is paid in full. When a vehicle is purchased with a loan, the lender files a lien on the vehicle with the state to ensure that if the loan defaults, the lender can take the car. Once the loan is paid in full, the lender confirms that the loan is satisfied and removes the lien, issuing a lien release document. The lien release document is necessary to prove that the vehicle is free and clear of any liens and can be sold or transferred to another owner. To obtain a lien release, the vehicle owner may need to provide a copy of the title for the vehicle that they are requesting be released. The process for obtaining a lien release varies by state and may involve completing paperwork and paying a fee for a new car title.