What must a dealer do regarding liens on vehicles?

The correct action for a dealer regarding liens on vehicles is to list all liens when selling. This is important because potential buyers need to be aware of any existing financial obligations tied to the vehicle before completing the purchase. Transparency about liens protects the seller from future disputes and ensures that the buyer understands their responsibility in relation to any debts associated with the vehicle.

Listing all liens helps maintain ethical standards in the auto sales process and fosters trust between the dealer and the buyer. It allows the buyer to make an informed decision and may impact their financing options or overall willingness to purchase the vehicle. Understanding the status of liens is essential since unresolved liens can affect the ownership transfer and could result in the buyer being responsible for the outstanding debts.

The other options do not accurately represent the necessary obligations involved with liens. For example, removing all liens before sale might not be feasible or required in every situation, and transferring liens to the new owner is not standard practice. Additionally, notifying the DMV to remove liens is usually a step that occurs after the vehicle has been sold and the remaining obligations have been settled.