When you purchase a car, you might have to take out an auto loan to pay for it. Taking out an auto loan means that you borrow money from a lender to pay for the vehicle and make monthly payments to the lender until the loan is paid in full. In some cases, you may only be able to get the title for your car once you have paid off the loan in full. This is because when the lender places a lien on the car, it gives them a legal right to the vehicle until the loan is satisfied.
The rules for getting the title for a car that has yet to be paid off vary depending on your state. There are two types of auto lending states in the US: title-holding states and non-title-holding states.
Title-holding states require the lender to keep the title until the loan is fully paid off. In these states, you will be able to get the title for your car once you have paid off the auto loan and obtained a lien release from the lender.
On the other hand, non-title-holding states allow the borrower to keep the title even if the car loan is not fully paid off. In these states, the title will be stamped with the lienholder’s name and address but in possession of the borrower. Once the loan is paid, the lender will produce a lien release letter to remove the lien from the title records.
In conclusion, whether or not you can get the title for your car that has yet to be paid off depends on your state of residence. If you live in a title-holding state, you will need to pay off the auto loan and obtain a lien release from the lender before you can get the title. If you live in a non-title-holding state, you can request a duplicate title, but until the loan is satisfied, the lienholder’s name and address will be present.