How To Register Car When Bank Has Title

If the buyer is financing the car your bank will need to send the title to the buyer s bank.

How to register car when bank has title. Provide completed documents including an application form for vehicle title and or registration bill of sale if necessary and other applicable documentation. Once the buyer pays for the car and you pay off the loan the title is free and clear. To add a name to a car title when the car has a loan you usually need the cooperation and consent of the lender. The bank keeps the title the registration renewal will come to you in the mail as the registered owner the bank owns the car until you pay off the bank that way if you don t pay the bank repos. The lender would have a lien against the car for the loan and would technically be its owner.

If you are still making payments and want to sell your used car the title almost surely lists the bank as the legal owner and you only as the registered owner. Otherwise the title can go directly to the buyer. You might have the option of refinancing the loan into two names however. Many car owners don t know how to sell a car when the bank has the title which requires paying off your car loan and transferring the title to the new buyer or the buyer s bank in some cases. Typically after you make your last payment to the bank or dealership your car title will be sent to you in the mail.

Tricky but not impossible. Once the loan has been satisfied and there are no risks to. The title that is sent to you should reflect all the correct information including having your name and address on it since you re the true owner of the vehicle now. Being listed as a lien holder protects the lender from having the car sold and transferred to another owner before the balance due on the loan is paid in full. When the purchase of a car is financed by a bank the title will show the lender as the lien holder.

Submit the signed title and proof of car sale to the seller so that he may now apply for a title transfer at the dmv. Most banks give you two options. New york state for example requires drivers to show proof of sales tax payment. Sign the title in order to release you of responsibility to the car in most instances. Visit a local dmv office to submit their paperwork.

In order to legally drive your car on the roads in the u s it must be registered with your state government. You can take the title or you can let the bank know where to send the title.