When the purchase of a car is financed by a bank, the title will show the lender as the lien holder. 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. Once the loan has been satisfied and there are no risks to the lender if the car is sold, the listing as a lien holder can be removed and the owner of the vehicle can take physical possession of the title.
Choosing the Best Way to Get the Title
Selecting the best way to obtain the title to your vehicle will depend on your proximity to the office of the lender and to the nearest office of your state’s department of motor vehicles. Other factors may include whether you need to get the certificate of title as quickly as possible to facilitate a sale of the vehicle or are just staying on top of your record keeping and can wait a short while before getting it in the mail.