![]() ![]() When you purchase a vehicle using a loan, the lender is buying the car for you and they are assuming all the risk when it comes to the payments. When you have another party on your vehicle’s title other than yourself, that is called a lien. You may need it to start the process of getting a new title. Hold onto this paperwork when you get it and keep it with all of your vehicle’s documentation. No matter what state you live in, you should receive some sort of notice from your lender that you have completely paid off the loan. Check your local DMV’s website to see what steps you will have to go through and how the transfer of the title will be handled. This will allow you to be ready when the time comes so you can get the ball rolling as quickly as possible. The best thing you can do for yourself is to know your state’s laws before you pay off your loan. Knowing the process behind this task will help you get your paperwork in order so you can be in compliance with all your local laws. In other cases, you will have to apply for a new title on your own by making a trip to the DMV. In some cases, the lender will take care of notifying the DMV and you will simply receive a new title in the mail as soon as your loan is paid in full. The process of getting a new title for your vehicle will change from state to state. No matter what, you will want to get the lender off the title as soon as you have completely paid off the loan. It may list the lender as the owner or it may list you and the lender as co-owners of the vehicle. While you are still paying off the loan for your car, the title may be arranged in a couple of different ways. How to Get Your Title After Paying Off a Loan Getting the new title when you pay off the vehicle’s loan will ensure that you don’t have any problems throughout your ownership of the car. If you don’t have the proper paperwork, you could run into serious issues or fines. You will also need the car title for things like registration and selling the vehicle. Because of this, it is very important that your car title accurately reflects the current owner. Not only does it help show who has full rights to the car, but it also documents who is liable for any infractions or issues that the car might be involved in. Why Do You Need a Car Title?Ī car’s title is the official document that lists the parties that are responsible for the vehicle. Knowing the process of getting a new paper title will help you get everything you need and enjoy the benefits of owning your new vehicle. While the loan is active, the lending institution will be a partial or full vehicle owner on the title. ![]() When you pay off a car loan, you have to get a new title that lists you as the sole owner. ![]() There will still be a few steps to take before you can take full ownership of the vehicle. However, just because the loan is paid off, that doesn’t mean your work is done. That’s why the day you pay off a car loan is a joyous occasion and can be a big weight off your shoulders. Buying a new car can be a complicated process and being saddled with payments brings its own set of stressors. ![]()
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