OMVIC Practice Test 2025 - Free OMVIC Practice Questions and Study Guide

Question: 1 / 400

Why should a dealer do a lien check on a vehicle that is being taken in on trade?

To ensure the vehicle has no mechanical issues

To protect the dealer and to ensure the dealer does not subsequently sell a vehicle with a lien

Conducting a lien check on a vehicle being taken in on trade is crucial for ensuring that the dealer does not inadvertently sell a vehicle that has outstanding liens against it. When a vehicle has a lien, it means that a financial institution or creditor has a legal claim on the vehicle as security for a debt. If a dealer sells a vehicle with an existing lien, the new owner could potentially face legal issues, including the possibility of repossession by the lienholder. This situation not only creates a negative experience for the customer but also exposes the dealer to significant liability and reputational damage.

By performing a lien check, the dealer safeguards both the business and the customers, ensuring that all transactions are transparent and free of legal complications. This due diligence helps maintain trust in the dealership and protects the investment of both parties involved in the sale.

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To verify the vehicle's mileage

To assess the vehicle's market value

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