![]() If your profits aren’t enough to cover your loan balance, you’ll need to find another way to make up the remaining amount.Financing a vehicle with an auto loan is a common option for car shoppers. However, this only works if you have positive equity in the car, meaning you owe less than what the car is worth. You can sell your vehicle and use the profits to pay off the loan, get the title, and transfer it to the new owner. But if you want to sell the car before it’s paid off, you will need the title to complete the transaction. If you’re planning to keep your car until the loan is paid off, there’s no need to get the title. It will be different than the current balance because it includes additional fees. If you can afford to pay off the rest of your loan in a lump sum, contact your lender and ask for the payoff amount. The only way to obtain your car’s title with your name as the legal owner is to pay off the remaining balance you owe. If you’re still paying off your auto loan, you don’t legally own the vehicle, even if you live in a non-title holding state and have possession of the title. Do you know how to sign over a car title?.Types of Car Titles: Everything You Need to Know.Then, you would go to the DMV and apply for an updated title. If your state doesn’t use the ELT system, you will probably receive the title from your lender with the release of lien form in the mail. Most lenders will wait a few weeks after your final payment has cleared before they notify the DMV. However, it usually takes about a month to get the title in this case. There’s no need to visit the DMV in person or submit a new title application. If you live in a title holding state, the notification process is different.įor states that use the Electronic Lien and Title (ELT) system, the lender will notify your state’s DMV directly, which will send you the updated title. Once the application is submitted, you can expect to receive the updated title within one month. It’s your responsibility to bring that letter to your DMV or town clerk’s office, along with the current title, and apply for an updated title. You will also receive an official release of lien letter. If you live in a non-title holding state, the lender will send you a notification confirming that the loan has been paid off. At this point, the lien-holder will be removed from the title and your name will be added as the owner. Once your loan is paid off and you have zero balance, you become the legal owner of the vehicle. Here’s a brief look at the process for both situations. The process of obtaining your car title depends on whether you’ve paid off the loan or if you’re still making payments. Here are the states that allow you to possess the physical title with a lien: But even if you live in a non-title holding state, the lien-holder’s name will still appear on the title as the legal owner. These are called non-title holding states. In some states, however, the driver is allowed to hold the title while they are paying off the loan. Because your lender technically owns the car until the loan is paid, you usually don’t get the title until the loan has cleared. Only at that point do you become the legal owner of the vehicle. When your car is financed with a loan, the lender will typically keep the title until the loan is paid off. Who Has the Vehicle's Title During Financing? Looking for an auto loan that works for you? Easily compare lenders below. Here’s what you need to know about car titles during auto financing, including how you can obtain a copy of the title if your lender has it. If you have a loan, your lender will most likely hold onto the title until you pay it off. Your car title is an important document that names the legal owner of the vehicle, as well as the VIN and lien-holders.
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