First and foremost, the person from whom you are purchasing the vehicle must ensure that he or she actually owns it (i.e., has clear title to the vehicle). If monies are owed on the vehicle, the lender can be considered a part owner of the vehicle. The vehicle is collateral in the event the owner fails to make payments. Many car loan agreements are worded so as to preclude the owner selling the car without their consent or without clearing the debt. If you want to purchase the vehicle, one of two things must happen: 1. The seller pays off the remaining debt on the vehicle before you purchase it. The seller, therefore, assumes full responsibility for clearing any debts or liens on the vehicle. 2. Both you and the seller need to approach the lender to see if the debt can be transferred to you. There would almost certainly be a transfer fee and the lender would have to do a credit check on you. However, transferring the loan is at the discretion of the lender. If this request is refused or if your credit rating is poor, you will have to go with option (1), above. If you do purchase a vehicle with outstanding debts or liens, the vehicle can be seized from you as collateral if the original owner defaults. In such a case, you would end up without a car for your investment.

I would shy away. if the private owner of said vehicle has a lien, then selling the vehicle, in tennessee is a law violation. you cannot sell a vehicle that has a lien, its a felony. if your are in another state, call your district attorneys office and check the law. better safe than sorry.