If you’ve paid off your vehicle loan, how do you obtain a new clean title from your lienholder?
When you borrow money to buy a car and use the car as collateral, your creditor places a lien on the vehicle. The lienholder’s name appears on the title along with the owner of the vehicle. If you’ve ever financed a vehicle, you will have a lienholder. The lienholder is listed on your vehicle title as the owner along with your name because they have lent you the money to purchase the vehicle and the debt has not yet been paid back. Once the debt is paid back in full, the lienholder is required to stamp your title as paid and mail it to you.
Unfortunately, not all lienholders are made the same. Frequently, vehicle owners will have to take the title process into their own hands.
The easiest way to release a lien on your vehicle title is to contact the lienholder directly and request that they send you a written lien release. The lienholder is the only authorized agent to release the lien from the title. If the lienholder doesn’t reply within twenty-four hours of your initial request, try contacting them via mail.
Using online sources and your state Secretary of State database, research the lienholder’s primary address along with any additional addresses you may find (principal address, mailing address, other locations, etc.). Using certified USPS mail to the official addresses, send your lienholder your state’s lien release request form along with a letter of non-interest. If your lienholder is no longer interested in pursuing the lien against the vehicle, a letter of non-interest is sufficient from the lienholder in absence of a lien release letter.
Before sending the forms, ensure that your portions are completed and notarized if needed. Sending the forms completed may result in a higher likelihood of a response.
A title holding state means that this particular state requires that the lienholder hold the title until the loan is paid off. Most states in the US are title-holding states. Non-title holding states will send the vehicle title with the owner’s name and lienholder’s name directly to the vehicle owner to hold until the loan is paid off.
There are currently nine non-title holding states. They are:
In order to obtain a clear car title, you must first obtain a lien release or letter of non-interest from your lienholder or lender. The steps above are a general overview, the processes for each state may vary slightly depending on the jurisdiction and the lienholder. When contacting your lienholder for a vehicle lien release, make sure that you are completing the forms correctly. In most states, submission of a fraudulent lien release is considered a felony.
If it’s your car, you deserve a title in your name. CarTitles.com takes the hassle out of applying for a title for your vehicle. Our team of title experts can help prepare your paperwork for any title method provided and assist you in obtaining a vehicle lien release.
Click here to get started on your vehicle lien release process!
Buying a used car is an excellent way to get a great vehicle at a fraction of the price you’d pay for a brand-new model. But when you’re buying directly from an individual, rather than from a dealer, there are extra steps involved in the process.
Here are six tips to help make your search for a used car easier and safer:
Not only is it required to obtain a bill of sale from the seller, but the bill of sale is also the second most important ownership document after the vehicle title. The bill of sale should accurately and explicitly state the vehicle details, the seller’s name, purchase price, the buyer’s name, and the date of the transaction. A bill of sale by itself will not get you a vehicle title, but it is almost always the first step in the process. By not obtaining a bill of sale at the time of purchase, you have no proof that you’ve purchased the vehicle which leaves you with no legal right to ownership.
In many states, a bill of sale can be handwritten or typed as long as it includes specific components. Before obtaining a bill of sale, check with your state’s department of motor vehicles or check out our article How To Write A Bill Of Sale.
The vehicle identification number (VIN) holds all of the details about a vehicle including its year, make, and model, as well as where it was manufactured and the type of engine it contains. The VIN will also tell you if the vehicle has ever been in an accident, stolen, salvaged, flood-damaged, junked, and other valuable information. Before purchasing a vehicle, check the vehicle’s VIN against the NMVTIS database resources. VINs that are entered into the NMVTIS database are considered junk or salvage and not eligible for a title.
The seller may say that everything is in working condition, but don’t just take them at their word. Whether it’s your regular mechanic or a friend in the industry, have an experienced mechanic take a look at the car before purchasing it. Your mechanic will be able to look at the vehicle with an unbiased opinion and alert you to any current or potential future problems. Even if everything checks out, bringing along a professional will help give you the peace of mind you need to know you’re not purchasing a lemon.
This is often where things get difficult. The vehicle title is the most important document regarding vehicle ownership and this original document is required to transfer ownership. The only person who is authorized to sign over a vehicle title is the individual listed as the registered owner on the front of the original certificate of title. The only exception to this is if there is a power of attorney.
If the seller doesn’t have the title ready at the time of purchase, this should be considered a red flag. If the seller is not the individual listed on the title and a power of attorney is not involved, this is also a red flag. If a seller were to sign over a vehicle title to you when they were not authorized to do so, the DMV will not issue you a title and it would trigger an investigation into the vehicle ownership.
Always get the original valid certificate of title at the time of purchase. Make sure that the person signing the certificate of title is the person also listed on the front of the title as the registered owner. If you do not get the title at the time of purchase, it will be up to you to locate the seller afterward to obtain a duplicate title or use a different method of title recovery.
First, for your safety, make sure to bring a friend or family member with you to the transaction. Choose a meeting place that has a security camera and plenty of people around so that you can feel safe during the transaction. The person you bring along with you can serve as a witness to the transaction and help you decide if the vehicle is really right for you. Additionally, they may provide a different perspective that helps you in your evaluation of the vehicle.
Buying a new used car is a really exciting purchase, but it shouldn’t be taken lightly. Before buying a used car, remember that it’s more than just a transaction, it’s a legal transfer of an asset. Make sure that your transaction includes all of the necessary research and documentation so that you can feel confident about your next used car purchase.
To get a new vehicle title, you will need to file for a lost title or use a method of title recovery. The vehicle title is the most important document for a vehicle and provides legal proof of ownership. Depending on your situation, this article will help you understand how to get a new title.
A lost title is also more commonly known as a duplicate title or a replacement title. A lost title is a vehicle title that was previously titled in your name, but the certificate has been lost, damaged, destroyed, or stolen. A lost title or duplicate title process requires that the individual applying for the title must be the registered owner in the DMV database. If you were not the last titled owner, you are not eligible for a duplicate or replacement title.
If you were the last titled owner, you can apply for a lost title or duplicate title with the DMV in your state. Most state duplicate title fees range from $2-$20 for a new certificate of title. Complete an application for a duplicate title in your state, pay the applicable fees and provide the proper identification documents.
Duplicate titles can only be issued in the state where the vehicle was last titled. For example, if you last titled your vehicle in Oregon, but now live in Colorado, you must contact the DMV location in the Oregon county in which the vehicle was last titled to obtain a duplicate title.
Title recovery is necessary when you have come into possession of a vehicle and did not receive a vehicle title at the time of purchase or lost the title before it could be transferred to your name. Title recovery uses legal methods allowed by the DMV in your state to get a new title for you in your name when you are lacking sufficient evidence of ownership. Each state determines the title recovery methods that are allowed by law.
There are over 22 different title recovery methods available. The title recovery method that is best for your vehicle situation will depend on the following factors:
The Vermont title loophole is a popular title recovery method used by out-of-state residents to obtain a vehicle title for vehicles model 15 years old or older using a bill of sale. Vermont is a non-titling jurisdiction, meaning the state does not produce titles for vehicle models older than 15 years old. However, these vehicles will receive a vehicle registration which in Vermont is equivalent to a vehicle certificate of title. After receiving this title equivalent, out-of-state residents can use the registration as evidence of ownership to transfer to a title in their state.
Looking for more information? Check out our article Top 5 Tips for Using the Vermont Title Loophole
A bonded title is a method of title recovery that requires you to obtain a surety bond, also known as a vehicle title bond, to secure ownership of the vehicle. The surety bond serves as collateral in the event that there is a discrepancy in the claim of ownership. Not every state allows for bonded titles. If your state does not accept bonded titles, you may be eligible for a bonded title through Vermont.
For more information on bonded titles and requirements, check out our article What is a Bonded Title?
If you are able to contact the prior owner of your vehicle, you can request they apply for a duplicate title and transfer it to you. If you know the prior owner, this would be a direct way to obtain a new title, as long as they’re willing to cooperate. The prior owner is not required to obtain a duplicate title and sign it over to you, but it would be a good idea for them if they did. By not signing over the vehicle title, the prior owner is still on the hook for any legalities that happen to the vehicle.
If you are unable to locate or contact the prior owner, you may have to proceed with a different method of title recovery.
If the last titled owner of your vehicle is now deceased, each state has a process to transfer the title from a deceased owner. However, in most cases, the applicant will need to prove familial relationship to the vehicle owner or have affidavits signed by living heirs to the estate.
Before using this title recovery method, get legal advice from a qualified legal resource or lawyer. For more information, check out our article How To Transfer Lost Title From Deceased Owner.
If it’s your car, you deserve a title in your name. CarTitles.com takes the hassle out of applying for a title for your vehicle. Our team of title experts can help prepare your paperwork for any title method provided.
Want a CarTitles.com professional to do it for you?
For as little as $159 for most processes, we will save you the headache and prepare all of the car title paperwork needed to get you a new title. Simply choose the title recovery method you’d like to use and we’ll get started!
Select your title recovery method:
Order Vermont Title LoopholeOrder Deceased Owner Title TransferOrder Bonded Title ProcessOrder Abandoned Vehicle ProcessOrder Prior Owner ContactOrder Lien Release Request Letter
If you find out that your VIN plate is damaged, missing, or destroyed, how do you get a new one? There are several steps you need to take. Each state may issue the VIN plate differently and have different processes for issuing a replacement.
A VIN (vehicle identification number) is a specific 17-character string of numbers and letters that uniquely identifies a specific vehicle. Every car has its own VIN, no two cars are exactly alike.
A VIN is readable through the windshield of the vehicle. It is also located on the driver’s side dashboard and door jamb on most vehicles. The vehicle title may also hold a VIN or it can be found on the insurance policy for the vehicle.
The purpose of a VIN is to provide an accurate description of a motor vehicle for use in official government operations such as registrations, renewals, and record keeping. The VIN is designed to identify a motor vehicle with various important characteristics including make, model, model year, body style, engine size, weight, and manufacturing plant designation.
The process to apply for a new VIN is very similar across all 50 states. Vehicle identification numbers are regulated by the federal government, so the processes across each state will be very similar. Here is how to apply for a replacement VIN plate in Ohio:
In Ohio, a vehicle owner can apply for a new VIN assignment if the original VIN is damaged, destroyed, or missing. To request a new VIN, you must submit an Application For Replacement Vehicle Identification Number (VIN) To A Motor Vehicle (BMV 3713). However, prior to submitting this application, you must complete the following tasks:
After the inspection is completed, the state highway patrol will complete and present a Salvage Inspection form (HP 106) to you.
Once you’ve obtained the salvage receipt, had the vehicle inspected, and obtained the Salvage Inspection form (HP 106), submit your application to the BMV with the following documents:
Upon receipt of your application, the BMV will submit forms BMV 3717, HP 106, and a copy of the original title to the state highway patrol. Additionally, the BMV will send the original certificate of title to the Clerk of Courts in the county where the application was filed.
If your application for a replacement VIN is approved, the state highway patrol will manufacture your new VIN plate. They will receive the new VIN plate in the mail and contact you to schedule an appointment for installation. Typically, the state highway patrol or other law enforcement agency will physically install the VIN plate for you to ensure it goes on the correct vehicle.
To obtain a new certificate of title with the replacement VIN plate, the state highway patrol will submit form HP 106 to the Clerk of Courts and instruct them to issue you a new certificate of title. The Clerk of Courts in the county where the application was filed will issue a new replacement title notated “replacement vehicle identification number plate installed”.
The VIN is an essential part of your vehicle. If you are looking to get a new certificate of title in your name, but your VIN plate is damaged, missing, or destroyed, your state will likely have a procedure for issuing a replacement VIN.
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Can you register a trailer in Vermont using the Vermont title loophole? Trailers can be registered in Vermont by both residents and non-residents. The Vermont title loophole is a common way for non-residents to obtain a title for a trailer that was missing the old title. Using the Vermont title loophole, you can get a title for your 15-year-old or older trailer using your bill of sale, even if you don’t have the original title.
Similar to the requirements for motor vehicles, the model of the trailer must be at least 15 years old or older to qualify for the Vermont title loophole. All parts must be installed on the trailer and must be road-ready in order to be titled. A trailer that is missing key components such as wheels cannot be titled. Additionally, the Vermont DMV does not issue titles for trailers with an empty weight of 1,500lbs or less. If your trailer has an empty weight of 1,500lbs or less, it will not qualify, even if the model year is more than 15 years old.
The Vermont title loophole does not have a standard bill of sale form. Your bill of sale can be typed or handwritten, as long as it contains the following information:
The book value of your trailer is an estimate of its current market value, which you can use to apply for the Vermont title loophole. The Vermont DMV first recommends using the NADA book value first in their statutes, but not all trailers will be featured in this book. If your trailer is not in the NADA book, you can use various other comparable to find the book value.
The sales tax owed is calculated using the NADA book value of your trailer. The Vermont DMV requires that 6% sales tax be paid at the time of registration. Depending on the weight of your trailer, your registration fee will vary. For trailers with a loaded weight of 1,500lbs or less, the registration fee is $27. For trailers with a loaded weight of 1,501lbs or more, the registration fee is $52.
For more information regarding sales tax, check out our article How To Calculate Sales Tax for Vermont Title Loophole.
Registering a trailer in Vermont using the Vermont title loophole is very similar to registering a vehicle using the same method. This method is a great way to get a title for a trailer without the prior title. If you own a trailer, it’s important to get it registered. Most states require trailers to be registered if they are used on public roadways. Every state recognizes the Vermont title loophole as a valid way to get a title for a trailer. If it’s your trailer, you deserve a title.
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