Can You Get A Title On A Car That Is Not Paid Off?

Can you get a title for a car that is not paid off yet? The short answer is yes, it’s possible to obtain a car title for a vehicle that isn’t fully paid off, but the process can be more complicated than it would be for a car that is fully paid off. Additionally, your ability to get a title on a vehicle that still needs to be paid off can also depend on whether or not you live in a title-holding or non-title-holding state.

When you finance a car, the lender typically holds the title until the loan is paid off. Once the loan is paid off, the lender will release the lien on the title, and you will receive a clear title in your name. However, if you need to obtain a title for a car that isn’t fully paid off, there are a few options available:

Work with the lender to release the lien.

If you’re still making payments on a car, your lender will hold the title until the loan is paid off. However, in some cases, the lender may be willing to release the lien on the title before the loan is fully paid off. This will allow you to obtain a clear title in your name. You’ll need to contact your lender to discuss your options.

Complete the loan payments and obtain a clear title. 

If you can pay off the remaining balance on loan, the lender will release the lien on the title, and you’ll receive a clear title in your name. This may be the most straightforward option if you can afford the remaining payments.

Apply for a duplicate title.

If you’ve lost your original title, you can obtain a duplicate title from your state’s Department of Motor Vehicles (DMV). However, if the car isn’t fully paid off, the DMV may require proof that the lender has agreed to release the lien on the title. If you’re in a title-holding state and lost your title, your DMV can issue you a duplicate lien title. Applying for a duplicate title does not mean the loan will be removed. This is a physical and valid car title, but until the loan is paid in full, the lienholder’s name will appear on the front. 

Why is it hard to get a title for a car that is not paid off?

Getting a title for a car that is not paid off can be challenging because the lender typically holds the title until the loan is fully paid. The lender has a lien on the title, giving them the legal right to repossess the car if the borrower defaults. Since the lender is listed as an interested party in the title, you’ll have to get their permission before you can do anything with the car or the title. 

In summary, while it’s possible to obtain a title for a car that isn’t fully paid off, the process can be more complicated than it would be for a vehicle that is fully paid off. It’s best to work with your lender or a professional title recovery service to ensure that the process is handled correctly and that you legally own the vehicle. Remember, driving a car without a clear title can be risky, so taking the necessary steps to obtain a clear title as soon as possible is essential.

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!

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Order Vermont Title LoopholeOrder Deceased Owner Title TransferOrder Bonded Title ProcessOrder Abandoned Vehicle ProcessOrder Prior Owner ContactOrder Lien Release Request Letter