Curious about how to obtain the title to your car after having paid off your auto title loan? After you have paid off your car loan, you are entitled to receive a clear title for your motor vehicle.
While the process may vary from state to state, the eventual outcome is that the Department of Motor Vehicles (DMV) issues a new certificate of title to the auto owner. Understanding how to eliminate liens and how to acquire the title after successfully paying off a car loan allows you to reestablish legal ownership of your vehicle.
In this article, we’ll discuss how this process works and everything else you need to know about title loans. If a title loan seems like something you could benefit from, don’t hesitate to contact Max Cash Title Loans today. Fill out a brief inquiry form online or call us directly to speak with a loan processor seven days a week!
What is a Title Loan and How Can I Obtain the Title to My Car After I Have Paid Off an Auto Title Loan?
For those unfamiliar with these loans, title loans are a type of secured lending, which uses a borrower’s vehicle as collateral for a loan amount. The title loan amount and eligibility are determined by the value of the car, as well as the borrower’s ability to repay the title loan and their earnings. One of the best parts about a title loan is that things like your credit score or credit card payment history aren’t a significant factor when applying!
First, let’s talk about what a lien is. A lien is a method of protecting the right of a vehicle owner, seller, or financial institution to take legal actions if they do not make payments on a loan or purchase. If you purchase a new car and take out an auto loan, then your lender puts a lien on your car title and becomes a lienholder. Vehicle titles include the names and addresses of the lienholders, which may be private individuals or financial institutions such as credit unions.
Additionally, your lienholder has the right to repossession of your motor vehicle if you fail to maintain your monthly auto loan payments. However, as soon as you make your final monthly payment, you have a right to request a lien release from the lienholder to be given a clear title from your local or state DMV.
How to Request a Lien Release to Obtain the Title to My Car After I Have Paid Off an Auto Title Loan?
ELT programs help states update vehicle information quicker and maintain lien records more proficiently. States use various processes for submitting lien releases, so be sure to check with your financial institution and state’s DMV office to understand your state’s requirements.
In some states, lien release procedures depend on whether a lender uses an Electronic Lien and Title (ELT) or a standard paper title. Lenders that use an ELT program have electronic titles and documents where a lien release will activate an automatic procedure for the vehicle owner to receive the title after paying off the car loan in full.
Processes may differ depending on whether there is an electronic lien or a conventional lien on a paper certificate of title.
Regardless of the method of your state’s Department of Motor Vehicles office, you can expect to pay a minimal fee when requesting a lien release and may need to wait a few business days to receive your duplicate title.
Here is a step-by-step assessment of how to request a lien release:
- The first thing you will need to do is check your car title. You want to verify it is in your name, as well as the name of the lien holder.
- The next step is to ensure that you have fulfilled your monthly payment obligations. You can only remove the lienholder if the car title loan has been successfully paid in full.
- Your financial institution may send you an automatic confirmation if you have successfully repaid your loan. Additionally, you can also request for this confirmation in writing using the financial institution’s letterhead.
- Finally, verify that you have repaid your loan in full. Afterward, you will then take the form to the DMV. We suggest you make an appointment, as lines at the DMV office are often quite long and time-consuming.
- Now that you’re at the DMV counter, the DMV will issue your new title. That’s it!
What is Required to Apply for a Title Loan?
When applying for a car title loan, you will need to provide several pieces of information. While this list may vary, this is a general look at what you will want to have on hand.
- A Lien-Free Vehicle Title
- A Valid Government-Issued Photo ID
- Proof of Income
- Proof of Residence
- Several Pictures of Your Motor Vehicle
- Valid Car Insurance
The Benefits of Working with Max Cash Title Loans
When choosing to work with Max Cash Title Loans, there are several benefits that could come with working with us.
Keep Your Motor Vehicle
While repaying your title loan, you can continue driving your vehicle just the way you were. As long as you continue with your monthly payment plan, the loan term will be a breeze!
No Hidden Fees or Charges 3
While repaying an auto title loan we find for you, you don’t need to worry about hidden fees! 3 5 We work only with transparent title loan lenders and insist on that throughout the loan agreement. Additionally, you’ll never have to worry about prepayment penalties, as well! 3
Customer Support is A Top Priority
At Max Cash Title Loans, we make it our mission to provide our customers with the best customer support possible. You can be certain that you’re protected and receiving the very best lending advice when working with us.
Flexible Loan Terms and Refinance Options 4
As previously mentioned, title loans are typically short-term loans, but you could get a longer period by working with us. 4
Apply for Your Auto Title Loan Today
If you think a title loan could be great for you, fill out an application with us today. We provide a simple online application form for customers to complete, but you can also give us a call, too! We’re available seven days a week and can’t wait to hear from you!