What should a dealer do if they find a lien on a trade-in vehicle?

The best course of action when a dealer discovers a lien on a trade-in vehicle is to pay it off immediately. This is crucial because a lien indicates that there is an outstanding debt associated with the vehicle. If the dealer proceeds with the sale without addressing the lien, it can lead to legal complications and harm to both the dealer's reputation and the buyer's trust.

When a dealer pays off the lien, they ensure that the transaction is clean and that the buyer receives clear title to the vehicle, free of encumbrances. This step is essential to prevent future legal issues, as an undisclosed lien may result in the buyer facing repossession of the vehicle if the debt remains unpaid. Additionally, handling the lien appropriately reflects the dealer's commitment to ethical practices and customer satisfaction.

In contrast, ignoring a lien, disclosing it without taking action, or awaiting discovery by the buyer are all practices that could lead to significant problems, both legally and in the dealer's relationship with their customers. Therefore, paying off the lien is the responsible approach to uphold the integrity of the sale.