A lien release letter for a car is a document that officially declares that the lien on your vehicle title has been removed and you will be free to take action with your vehicle. This document removes any restrictions on what you can do with your car. A person is typically eligible for a vehicle lien release when the loan on the vehicle has been paid back to the lender.
Your lender, who has loaned you money to purchase a vehicle, places a lien on your title until the loan is paid off in its entirety. A lien is a claim on the property for the security of payment. When a lender loans a borrower (you) money to purchase a vehicle, they want to make sure that they are paid back plus interest. Your lender, also known as your lienholder, will remain printed on the front of your vehicle title until the loan is paid off. A lien on a vehicle title is a cloud on the title that places a hold on ownership; once it’s paid off, you can get a title for your car or you can sell it or trade it in.
The process of filing for a vehicle lien release will vary depending on your state, your situation, and your lender. However, the lien release process typically consists of the following four steps:
Step 1: Identify your lienholder
Step 2: Compile your lien release letter and non-interest letter
Step 3: Mail your lien release letter and letter of non-interest through certified mail
Step 4: Obtain the signed lien release letter and apply for a clear title
When your lienholder has released the lien on your vehicle, you can take the lien release letter and the letter of non-interest to your state DMV for processing. Before you can receive a clear title for your vehicle, however, you will need to pay all registration and tax fees as well as any title transfer fees.
Typically, your lienholder is required to release your title once the loan has been paid. Unfortunately, that doesn’t always happen. Just because your loan is paid doesn’t mean that the lien has been released; you may still have to go through the vehicle lien release process and notify the DMV of the satisfied loan.
For more information and assistance, learn more about our vehicle lien release process.
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So many things are different about electric vehicles. One thing is how you buy them. We saw the other day a company called Tenet that does a balloon program where you don’t have to finance the whole thing, you can hold some of it out to get a rebate from the taxes. Here today comes a company called Drive It Away that does subscriptions to vehicles where you’re not buying it, you’re not leasing it, you’re just paying for a subscription. And they have a financial plan that allows you to just drive the car and you can probably switch the car around too. The way they word it is, it’s an app that regardless of credit you can immediately start driving a new Bolt EV through a turnkey vehicle subscription. It includes insurance, maintenance service, and all the details you need to have a vehicle. This is a full plug-in electric vehicle.
This is the type of modern financial technology that’s going to be attached to new types of vehicles, electric vehicles, to make the ownership experience different from gasoline vehicles. These companies are realizing that electric vehicles are a rapidly growing segment of what people sell. The use of the vehicle might be nontraditional, you might not need it for three-four weeks. If you’re working from home you might not need it for a month. So that subscription allows you to use it for different intervals.
So be aware that not only are electric vehicles different in the vehicle architecture, but the ownership experience and payment structure might be different than traditional legacy ownership. Buying leasing money down interest rates. It might be a more app-driven experience like everything else in modern technology.
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Why is it important to verify who you’re purchasing a used vehicle from? There are a lot of what’s called unlicensed dealers or curb stoners out there that are buying and selling cars over the internet. It’s a lot easier to do now than it used to be. curb stoners historically get their name because they used to have to sell cars from the curb. As an unlicensed dealer, they didn’t have a dealer lot or showroom to sell from. As a result, they would just have cars at their house on the curb. They would put an ad in the classifieds in newspapers, and sell these cars directly from the curb.
First of all, an unlicensed dealer is against the law. It is illegal to sell vehicles without a dealer’s license. Second, an unlicensed dealer has no regulating authority overseeing their business practices or their inventory. Without outside oversight to hold the “dealer” accountable, it’s highly probable that the vehicles for sale will have a variety of issues such as odometer tampering, certificate of destruction title, prior theft, or mechanical problems.
Odometer tampering is when a vehicle’s odometer is purposefully changed to reflect a lower mileage to increase the value of a vehicle. Odometer tampering is often found with curb stone vehicles due to the lack of regulatory oversight of each vehicle’s odometer. A dealer’s license is required to log the odometer of each vehicle on their lot, which is why it’s much less likely that a licensed dealership will have tampered with the odometer. Curb stoning is a state-level crime, while odometer tampering is a federal offense that carries hefty legal repercussions and possible incarceration.
Before purchasing a vehicle, investigate the dealer to ensure that they are properly licensed in your state. Most states require that to have a dealer’s license, you also have to have a physical location to sell your inventory. Call the dealership prior to visiting and ask about their licensing. Dealerships that are properly licensed have nothing to hide and will be more than happy to prove their status as a legal seller.
The dilemma of whether to purchase a vehicle without a title is a common concern that we encounter daily, with 700 to 800 calls inundating our lines. Many individuals contemplate the risks and uncertainties associated with acquiring a vehicle without a valid title. It’s crucial to understand that, in most cases, we strongly advise against buying a vehicle without receiving a proper title at the time of sale.
The primary reason for our caution is that there are numerous instances where obtaining a title for a vehicle without one becomes nearly impossible. Approximately 20 to 30% of the time, individuals who find themselves with a vehicle lacking a title encounter insurmountable obstacles in securing one.
It’s a common misconception that running a Carfax or a VIN check can unveil all potential issues with a vehicle’s title. However, these consumer-grade services are limited in their capabilities. They might not reveal crucial information, and the disclaimers at the bottom of Carfax reports explicitly state that certain data may be missing.
Attempting to secure a title without the original title in hand involves navigating through a series of challenging procedures. Some noteworthy points include:
It’s essential to recognize that obtaining a title for a vehicle without the original one is intentionally challenging. This safeguards the interests of both the prior and new owners. While it might be tempting to explore alternative routes, keep in mind that these often come with their own set of difficulties and annoyances.
If you haven’t yet made a purchase, our recommendation remains consistent: refrain from buying a vehicle without a title. If you’re already grappling with such a situation, remember that there are avenues to explore, but success is not guaranteed, and the process is intentionally arduous. Always approach such transactions with caution and awareness of the potential hurdles that may arise.
Every day, numerous individuals face the dilemma of whether to purchase a vehicle without a title. This decision is critical, and it’s strongly advised against. Here’s why:
Purchasing a vehicle without a title is fraught with risks and challenges. The DMV’s strict processes exist to protect all parties involved. If faced with such a situation, explore legal avenues, be prepared for potential setbacks, and consider seeking professional advice to navigate the complexities of obtaining a title.
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