Contact Lien Holder

• Before attempting to sell your vehicle, contact the lien holder and explain that you want to sell. In most cases, you will have to pay off the loan on your vehicle so that the lien holder can release the lien before the new owner can transfer the title into his own name. Usually the buyer will have to wait a few days to get the signed title after you sell the vehicle so that you can get the lien released.
  
  

Provide Lien Information

• If there is a lien on your vehicle at the time of sale, you must disclose this information to prospective buyers. Massachusetts also requires you to give the name and address of the lien holder to your buyer when you sell the vehicle. It is illegal to sell a vehicle with a lien on it without disclosing the lien because you don't yet have the legal right to transfer the vehicle's title.
  
  

Sales to Family

• If you don't expect to get enough money to pay off the lien, consider selling the vehicle to a family member and continuing to make payments on it until the lien is satisfied. For example, sell your vehicle for a few hundred dollars to one of your children and continue paying the lien. Make sure you get an agreement in writing that the buyer understands he cannot transfer the title into his own name until the lien is satisfied in case the family member gets impatient and tries to sue you for selling a vehicle with a lien.
  
  

Considerations

• While selling a vehicle with a lien on it is not illegal in Massachusetts, it can be difficult. You must sell the vehicle for high enough a price to pay off the lien, which may cut into your market of interested buyers, as most people don't want to buy used cars from private dealers for high prices. Unless you need to sell the vehicle right away, it may be best to wait until you've satisfied the lien.