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How to obtain your car title after loan payoff Advertiser Disclosure Advertiser Disclosure We are an independent, advertising-supported comparison service. Our aim is to assist you make smarter financial decisions by providing you with interactive tools and financial calculators as well as publishing original and impartial content. This allows users to conduct research and compare data for free to help you make informed financial decisions. Bankrate has agreements with issuers such as, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Make Money The offers that appear on this website are provided by companies that pay us. This compensation can affect the way and when products are featured on this website, for example, for example, the sequence in which they appear within the listing categories, except where prohibited by law for our mortgage or home equity products, as well as other home loan products. However, this compensation will not influence the content we publish or the reviews that you see on this site. We do not contain the universe of companies or financial offerings that could be available to you.



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3 min read Published June 23, 2022
Written by Holly D. Johnson Written by Author, Award-Winning Writer

Holly Johnson writes expert content on personal finances, credit cards loyalty, insurance and other topics. In addition to writing for Bankrate and CreditCards.com, Johnson is also a regular contributor for clients that include CNN, Forbes Advisor, LendingTree, Time Magazine and many more.







Edited by Chelsea Wing Edited by Student loans editor

Chelsea has been with Bankrate since the beginning of 2020. She is invested in helping students navigate the daunting costs of college , and simplifying the maze in student loans.









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Once you've made the final payment for an auto, you'll need to obtain an official title issued by your lender to show that you legally own the car. It is also a crucial document if you end up selling your car in the future down the line. What a car title lien is An auto lien is a proof that your car is , often, your lender. In many ways, a lien on your vehicle is like a property lien on your home. With a lien in place, the lender has rights to the car until you pay off what you borrowed, in addition to interest and fees. Once the loan is paid in full, you can remove the lien from your automobile title is lifted and the title is released to you. This is when the title of the vehicle shifts from your lender to you. How to get your title after paying off the car loan Once you pay on your car loan, the lien holder is required to inform your local Department of Monitor Vehicles (DMV). They can do this electronically or by submitting specific state-required paperwork. In either case, they'll inform the state that you do not have a amount due on your loan and that you are an owner solely of the vehicle. "After you've paid off your auto loan you'll receive a 'free and clear' title for your vehicle, which means that you're now completely in control of your car," says Julie Shinn, vice director of lender administration at RateGenius. "Anytime there's an ownership change, you have to update on the record." The title change process is different for each state. process of getting the title of the car you paid off is based on the state's laws. Some states take care of this completely, while other states require tedious work. According to Shinn you, your lender will give you an obligation to file a lien release in states where you must submit a claim to obtain your title. This includes formal documentation that the loan has been paid in full. From there, you'll take these documents to the state DMV to obtain a new title solely in your name. If you live in another state, once the DMV is informed that you've registered, they'll send you the title for your vehicle with no effort from you. For more information on the process in your state, go to your State's DMV website . What is the time it takes to get a title after loan payment Shinn states there are states in which you have to file paperwork for an auto title that is new under your name. You can expect to get your new title in any time between two and six weeks after submitting the required paperwork. Since every state's processing timelines differ and the process could be longer or shorter. Nishank Khanna, a CFO at Clarify Capital, says states with DMVs that issue auto titles on a regular basis may require shorter time, typically around 15 to 30 days. But, processing and mailing time can drag things out, so be sure to contact them via phone or email, or even an in-person visit in case you feel it's been too long. Last thoughts about liens Although it's common to have a lien placed on your vehicle, there are crucial details to be aware of. For example, a lien on your vehicle could (or at least) make selling your car more difficult, says Brian DeChesare of Mergers and Inquisitions. This is due to the fact that you will have to pay off your car loan and obtain acces to your title before you can sell your vehicle and transfer the title to a different person. You may not have the funds to pay off your car prior to selling it and if you do happen to owe more than what your car is actually worth, you'll have to pay for the difference. DeChesare adds that the opposite is the case also: You can't receive the title for the car you purchase from someone who is a lien holder until they've paid for the vehicle. This can be an extremely complicated process. However, some DMVs offer a lien search option that allows you to find who owns the title to the vehicle and contact them directly. Because of these difficulties, many motorists simply sell their cars with an attached lien to their dealership when they upgrade. If you are at a dealer, you'll be offered a trade-in value for your car , which is likely to be greater than the amount you are owed. The dealer will take care of transferring the title to the owner so it can transfer your vehicle to someone else leaving you off the table. The final word If you're trying to obtain your title after paying off your auto loan it is possible that you will need to just sit back and sit back and. However, in certain states, a trip to the DMV may be in your near future. Whatever the case, you'll be proud of having have paid off your car loan. Be aware of your financial future before upgrading to a different car with a new payment, especially if your car is still in good condition. Find out more


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Written by Author, Award-Winning Writer

Holly Johnson writes expert content on personal finances, credit cards loyalty, insurance and other topics. In addition writing articles for Bankrate and CreditCards.com, Johnson does ongoing work for clients including CNN, Forbes Advisor, LendingTree, Time Magazine and other publications.



Edited by Chelsea Wing Edited by Student loans editor

Chelsea has been working with Bankrate since early 2020. She is invested in helping students navigate the high cost of college and dissecting the complexity of student loans.






Student loans editor




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