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Title-Holding vs. Non Title-Holding States

  • 1 min read

What happens to your car title when it’s financed? Well, this entirely depends on whether or not you live in a title-holding state or a non-title-holding state.

What is a title-holding state vs. a non-title-holding state?

Title-holding state: A title-holding state 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.

Non-title-holding state: A non-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 non-title-holding states.

What states are non-title-holding states?

There are currently 41 non-title-holding states:

Alabama Idaho New Hampshire Tennessee
Alaska Illinois New Jersey Texas
Arizona Indiana New Mexico Utah
Arkansas Iowa North Carolina Vermont
California Kansas North Dakota Virginia
Colorado Louisiana Ohio Washington
Connecticut Maine Oregon West Virginia
Delaware Massachusetts Pennsylvania Wisconsin
Florida Mississippi Rhode Island  
Georgia Nebraska South Carolina  
Hawaii Nevada South Dakota  

What states are title-holding states?

There are currently 9 title-holding states:

Kentucky Minnesota New York
Maryland Missouri Oklahoma
Michigan Montana Wyoming