In order to sell your car, you must pay off the lien to the IRS first, or find a buyer who is willing to pay off the lien. Only when the IRS has accepted payment can you or someone else receive Title to the car.
Of course you would give notice to the buyer that there is a default of the car loan in effect. To not give notice to the buyer would constitute fraud. You must be able to pass clear title to the...
If they sell you a car that was traded in, then didn't pay off the previous owner's loan, then no.If they just sell it quickly after the trade, but are processing the payoff for the previous loan,...
If you sell it for the amount owed, it's little trouble. Just send in the payoff amount and a letter requesting release of lien status and the title. Once the financial intitution has finished it's...