The lien payoff process can add extra steps when you’re buying vehicles outside of auctions, like trade-ins or street purchases. Between verifying the payoff amount, sending funds to the lienholder and tracking the title, you’re losing time that could be spent selling.
That’s where AFC’s Lien Pay service can help. Available through our Non-Auction Purchase flooring program, Lien Pay provides back-end support for qualifying lien payoffs. We help with payoff verification, funding and title follow-up, so you can spend less time managing the process and more time focused on your dealership.
Here’s some things you should know about the lien payoff process and how we can help make it easier to manage.
Why Can Lien Payoffs Be Challenging?
Buying vehicles outside of traditional and online auctions can give you more options for sourcing inventory. But when a vehicle has an existing lien, you have to verify the payoff amount, send the funds to the lienholder and follow up on the title before you can sell the vehicle.
When you’re already focused on running your dealership, having help with the payoff process can make a difference.
How AFC’s Lien Pay Solution Can Help You
Our Lien Pay solution is designed to help eligible dealers with qualifying lien payoffs through AFC’s Non-Auction Purchase flooring program.
- Get Help Verifying the Payoff. Before funds can be sent to the lienholder, the payoff amount needs to be verified. AFC can help verify the payoff details, so there’s less back and forth for you to manage.
- Keep More of Your Cash Flow Available. Using your own operating cash for a lienholder payoff can tie up funds that could be available for other dealership needs. With AFC’s Lien Pay solution, we advance funds directly to the lienholder for eligible transactions. This can help keep your cash flow available for your business.
- Spend Less Time Following Up on the Title. A lien payoff can also involve following up on the vehicle title. With Lien Pay, we help with title follow-up on eligible transactions. Plus, our online Power of Attorney process can help reduce the paperwork involved in obtaining title releases.
Add More Flexibility to Your Inventory Sourcing
Your inventory opportunities don’t have to be limited to traditional and online auctions. Lien Pay can support qualifying purchases from other sources while helping with the back-end lien payoff process. That support can give you more flexibility when considering vehicles for your lot.
Learn more about how AFC can support your Non-Auction Purchases and help you source inventory beyond the auction.
Let AFC Help Simplify Your Next Lien Payoff
With AFC’s Lien Pay service, you can get support with payoff verification, funding and title follow-up on eligible transactions—helping make the lien payoff process easier to manage.
Contact your local AFC team to learn more about Lien Pay.
Frequently Asked Questions About the Lien Payoff Process
What is a lien payoff?
A lien payoff is the amount which must be paid in order to remove an existing claim (lien) on a vehicle. If you’re buying a vehicle with an existing lien, the process can involve verifying the payoff amount, working with the lienholder and following up on the title. Until the lienholder is paid the remaining debt the lienholder still has a claim to the vehicle.
How can AFC Lien Pay help my dealership?
For eligible transactions, AFC’s Lien Pay service can help verify the payoff amount, advance funds directly to the lienholder and assist with title follow-up. This back-end support can help make the lien payoff process easier to manage while preserving working capital. This extra help saves you time and keeps your cash free while you pay off the lien—getting your vehicle ready for sale faster.
*Disclaimer: AFC does not guarantee any results for floorplan financing or trade-ins and examples are for illustrative purposes only. Dealers should consult their own advisors to make independent business decisions regarding floorplan financing and inventory sourcing. “AFC” refers to Automotive Finance Corporation, Automotive Finance Canada Inc., and AFC Cal, LLC in their respective jurisdictions
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