Lien Exists
Another type of “hidden cost” is the existence of deferred liabilities. A lien is interest granted to another party (often a bank) as security for a debt. For example, if you buy a car with a bank loan, the bank will place a lien on your car stating that your car can be repossessed if you fail to pay the outstanding debts.
Sometimes the car seller intentionally forgets that there is a lien on the car. If you purchase the vehicle before learning of the lien, you may have to pay it off. One way to avoid this trap is to request a report from CARFAX Canada that details the vehicle history, including any outstanding liens.