OMVIC Practice Test

True or False: A customer should do a lien check on a vehicle being purchased from a dealer.

1. False

2. True

The correct answer is: False

Conducting a lien check on a vehicle being purchased from a dealer is a critical step in the buying process. This is because a lien indicates that there may be outstanding debts associated with the vehicle, which can affect ownership rights. If a lien exists, the current owner (the dealer, in this case) may not have the legal authority to sell the vehicle free and clear. When a customer checks for liens, they can discover any financial claims against the vehicle. This is important because, if a buyer purchases a vehicle that has a lien, they could be held responsible for the debt after the purchase. Therefore, verifying that a vehicle is lien-free ensures the buyer is acquiring a clear title, thus protecting their investment and future ownership rights. This practice promotes transparency and helps avoid any potential legal complications in the future.