What is a Lienholder on a Purchased Vehicle?

A car dealership representative holding a calculator and presenting a car loan agreement to a buyer that would result in a lienholder on a purchased car.There are few things more exciting than purchasing a new car. Since cars cost a hefty sum, it’s not out of the ordinary to not have the means to pay for them upfront. This is where you can rely on financing or a car loan. With a loan, you can take your car home while committing to monthly payments for a fixed term. When you enter into a loan, you are signing a binding agreement between you and an entity known as a lienholder. Let’s discuss the purpose of a lienholder on a purchased vehicle and what that means for your financials and insurance. [Read more…]