Why doesn't the DMV reprint Car Titles?

[jz78817]

@robby

The following applies to my experience here in Connecticut.

When you take out a car loan, the title gets sent to the bank or credit union that is financing the vehicle. (They do this so they can repossess the car if you fail to make the payments.) However, when the car is paid off, they are supposed to send the title to you.

varies by state. in Michigan, you get the title right away but it lists any lenders with a security interest in the vehicle. once you pay off the loan the bank/CU sends you a “release of lien” letter which you need to attach in order to transfer the title later.

[Bear_Nenno]

@Hari_Seldon

What happens if I move from Canada to the US with my car? There is no such thing as an auto title in Canada (or at least in Quebec). My registration is proof of ownership.

You have a Certificate of Origin for the vehicle, right? That’s all you need to get a title. Your registration can be used to avoid paying the sales taxes. You may still have to pay import fees, though.

[robby]

@jz78817

varies by state. in Michigan, you get the title right away but it lists any lenders with a security interest in the vehicle. once you pay off the loan the bank/CU sends you a “release of lien” letter which you need to attach in order to transfer the title later.

In Connecticut the title also has any lienholders (i.e. lenders) listed on the title, and then goes ahead and sends the title directly to the lender to retain for the life of the loan.

When the loan is paid off, the lender is supposed to send the title to the owner after signing off on the front of the title that the lien has been released. They also send a lien release letter to the owner.

After this failed to happen with two of my older vehicles, I made a point to call my credit union right when the loan was paid off on my wife’s car (just a few weeks ago), and got the title with the lien release letter in the mail a few days later (and then promptly traded in my wife’s car for a new model). :smack:

If you never get the title from the lender, you can get a replacement title from CT DMV, but need a letter from the lienholder indicating that the loan has been paid off.

[robby]

@Bear_Nenno

You have a Certificate of Origin for the vehicle, right? That’s all you need to get a title. Your registration can be used to avoid paying the sales taxes. You may still have to pay import fees, though.

This happened to me with a new BMW that I bought in Germany back in the early '90s through a military sales program. I had the car shipped to the U.S. and drove it to Texas to visit family and get it registered in the U.S. I had a U.S. Army Europe registration and plates, and because the car already was registered, I wasn’t charged sales tax in Texas.

What I didn’t notice at the time was that I was issued a “non-negotiable title” in Texas. I’m not sure why they did this, but it could have been because there was a loan on the vehicle, or because I was missing some paperwork.

When I later moved to Connecticut and went in to get a Connecticut title, the CT DMV was not very happy with my Texas non-negotiable title. However, one of the papers I had in my possession was a ten-year old Certificate of Origin. Connecticut was perfectly happy to issue me a title based on this, but the DMV personnel puzzled over whether or not to charge me sales tax or import fees on my ten-year old vehicle. :dubious: Fortunately they decided this was stupid, and just issued me a title.