What to do after paying off the car loan? (sales, lease)

[sunspotzsz]

Hi there,

I am sorry if this isn't a good question but I need some help.

I just paid off my car loan and received the certificate of title. There was also a letter saying that I need to go to DMV to do a title transfer to clear title.

But, I already have the tile. Do I need to go to the DMV? If yes, what to bring? And any DMV office is fine?

Thanks a lot.

[StanFischlerHockE]

no other action is required. no need to go to dmv

[PDD]

The only thing you have to do is drive it for ten more years to get your moneys worth out of your purchase.

[freshjiv]

Both people above are wrong. If you just paid off the loan (ie you were financing from a dealer like Honda or Toyota), then the Title is actually in their name and they have signed it and had it notarized to be ready for it to be put in your name. The title is actually not in your name when you do an auto loan with a dealership. The title remains in the dealerships name until you pay off the loan, they send you the title, and you go to the DMV and get the title put into your name.

Quick heads up, and you are going to get pissed, which you should b/c its bs, but you are going to have to pay the 3% tax when you do this, so if they value your car at $15,000, then you will have to pay $450, which does not include the actual title cost and everything.

[Lisalrenee]

FRESHJIV is correct, I'm pretty sure, but I'm also pretty sure there's no rush to transfer the title out of the lender's name and into yours unless you're looking to unload your car. My last car was driven for 5 years after it was paid off, and I just kept the pay-off notice in a file so when it was time for the car to move on, then I was able to transfer.

[PDD]

Originally Posted by freshjiv

Both people above are wrong. If you just paid off the loan (ie you were financing from a dealer like Honda or Toyota), then the Title is actually in their name and they have signed it and had it notarized to be ready for it to be put in your name. The title is actually not in your name when you do an auto loan with a dealership. The title remains in the dealerships name until you pay off the loan, they send you the title, and you go to the DMV and get the title put into your name.

Quick heads up, and you are going to get pissed, which you should b/c its bs, but you are going to have to pay the 3% tax when you do this, so if they value your car at $15,000, then you will have to pay $450, which does not include the actual title cost and everything.

So you are saying the registration lists the dealer as the owner of your car?
If the dealer owns the car in who's name is the car insured?

You are also implying that no sales tax was paid on the car when it was purchased.

It sounds to me that you might be confusing a lease of a car that is being purchased after the lease expires.

MY NC title shows me as the owner with a place for the lien holder to sign off when the loan is paid.

Are you sure you know what your talking about because your explanation does not make sense.

[freshjiv]

Yes I know what i am talking about. The original poster will have to pay that 3% tax both when he bought/financed the car from the dealer, and then again when he goes to the DMV to get the title completely into his name and out of the dealer's name. Thats why I said he is going to be pissed b/c he will be like "I already had to pay this tax back 4-5 years ago when I bought this car".

Registration and insurance would obviously be on the the poster, but legally, the car is not "his" until the loan is paid off and the title is reissued to him and out of the dealerships name.

Originally Posted by PDD

So you are saying the registration lists the dealer as the owner of your car?
If the dealer owns the car in who's name is the car insured?

You are also implying that no sales tax was paid on the car when it was purchased.

It sounds to me that you might be confusing a lease of a car that is being purchased after the lease expires.

MY NC title shows me as the owner with a place for the lien holder to sign off when the loan is paid.

Are you sure you know what your talking about because your explanation does not make sense.

[PDD]

Originally Posted by freshjiv

Yes I know what i am talking about. The original poster will have to pay that 3% tax both when he bought/financed the car from the dealer, and then again when he goes to the DMV to get the title completely into his name and out of the dealer's name. Thats why I said he is going to be pissed b/c he will be like "I already had to pay this tax back 4-5 years ago when I bought this car".

Registration and insurance would obviously be on the the poster, but legally, the car is not "his" until the loan is paid off and the title is reissued to him and out of the dealerships name.

I can't believe that you have to pay the 3% tax twice on the same car.
So if you pay cash the tax is 3% but of you finance the tax is 3% twice?
This does not make sense and when something does not make sense that means it is probably not true.
What makes sense is if this is a car being bought off lease. Lease cars are always in the name of the owner and not the lessee.

[tmasek73]

Originally Posted by PDD

I can't believe that you have to pay the 3% tax twice on the same car.
So if you pay cash the tax is 3% but of you finance the tax is 3% twice?
This does not make sense and when something does not make sense that means it is probably not true.
What makes sense is if this is a car being bought off lease. Lease cars are always in the name of the owner and not the lessee.

He doesn't know what he is talking about per the DOT website:

6.9 REMOVAL OF LIEN G.S. 20-58-58.8, 85 (MVR-8)
A lien is normally released when a sale occurs and the lien is properly released. Registered owners may have their
lien removed with the following:
1. MVR-8 completed by the registered owner
2. Lien marked paid on the title or separate valid lien release
3. Fee of $15.00
The title will be issued clear of lien and mailed to the registered owner.
A second lien may be removed without removal of the first lien. The release of the first lien automatically makes
the second lien first.

[V65Ozzie]

Originally Posted by MichaelSullivan

Check if your state's DMV has a website with an FAQ like this one from California:
"I paid off my car loan. Do I need to notify DMV?" at Frequently Asked Questions FAQ

There is an upside to not transferring the title. if you get busted for drunk driving, they can't take your car, because it's not yours.....
I own my car outright, I'd be screwed.....but then again I don't drink and drive.
*Dislcaimer* I do not agree with drunk driving, I just think the rules are kinda twisted as to who and what they can do to you.