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What happens to the car title when the loan is paid off?

What happens to the car title when the loan is paid off?

Q: How to remove co-signer from car title after car is paid off?

To remove a co-signer from a car title after the loan is paid off, you typically need to contact your state's Department of Motor Vehicles (DMV). You may need to provide proof that the loan is paid off and complete a title transfer application. Check with your DMV for specific requirements and forms.

Q: What happens after you finish paying off your car loan?

After you finish paying off your car loan, the lender will release their lien on the vehicle. They will send you the title, confirming that you own the car outright. It's important to keep this title safe, as it proves your ownership.

Full question:

I am a co-applicant for a car loan. What happens to the title when the loan is paid off

Category: Automobiles
Date: 04/07/2025
State: Connecticut

Answer:

When the loan is paid off, the lender sends the title to the owner(s), indicating that the lien has been released. Until that point, the lender holds the title as security for the loan. If the loan is not paid, the lender can repossess the car and sell it at public auction if the loan remains delinquent, according to the law.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

What happens to a car title when a loan is paid off?

When a car loan is paid off, the lender releases their lien on the vehicle. They will send the title to the owner, indicating that the loan has been fully satisfied. This means the owner now has full ownership of the car without any claims from the lender.