Paid off car - NJDMV ripoff (insurance, transfer, buyer)

[ansky]

I recently paid off my car and received the title in the mail. I thought I was done and could now file away the title. Not so. According to the letter that came with the title (and the conversation I had with Honda Financial over the phone), if I ever want to sell or trade in the vehicle, I have to bring the title to the DMV and pay $60 to have them remove the lien from the vehicle. The title I'm holding already had an $85 fee. If I'm holding the title why does the DMV have to do an additional step? How is there still a lien if I paid off the car from Honda Financial? This makes no sense to me. The way I thought it worked was, I pay off the car, Honda removes the lien, and sends me the title.

[njkate]

Originally Posted by ansky

I recently paid off my car and received the title in the mail. I thought I was done and could now file away the title. Not so. According to the letter that came with the title (and the conversation I had with Honda Financial over the phone), if I ever want to sell or trade in the vehicle, I have to bring the title to the DMV and pay $60 to have them remove the lien from the vehicle. The title I'm holding already had an $85 fee. If I'm holding the title why does the DMV have to do an additional step? How is there still a lien if I paid off the car from Honda Financial? This makes no sense to me. The way I thought it worked was, I pay off the car, Honda removes the lien, and sends me the title.

That is the way it always used to work!! Thieves!!

[NJGOAT]

Originally Posted by ansky

I recently paid off my car and received the title in the mail. I thought I was done and could now file away the title. Not so. According to the letter that came with the title (and the conversation I had with Honda Financial over the phone), if I ever want to sell or trade in the vehicle, I have to bring the title to the DMV and pay $60 to have them remove the lien from the vehicle. The title I'm holding already had an $85 fee. If I'm holding the title why does the DMV have to do an additional step? How is there still a lien if I paid off the car from Honda Financial? This makes no sense to me. The way I thought it worked was, I pay off the car, Honda removes the lien, and sends me the title.

This is not true. As long as the title contains a signature and date from the financial companies representative affirming the release of the lien you can sell/transfer that title legally without issue. The only time you would need to go to the DMV and have a new title issued is if you wanted a totally clean title with you listed as owner and no lien. This is NOT necessary to do and you are NOT restricted from selling the car with the current title you have.

Just FYI, you should also remember to contact your insurance company and update your "loss payee" information. When a vehicle is financed the loss payee is the finance company. Now, that they have no interest in the vehicle you need to update it to your name. Failing to do this won't result in anything too crazy, but can create a delay and confusion if you had to file a claim.

[boater1]

This is NOT true
Earlier this year I paid off my car
I got the title from bank with letter saying all paid off.
I thought I had to go to DMV.

So I did
They told me, I could have just called, they would remove lien from computer.
Never asked for bank letter , nothing
just my say so.

I asked abotu the title that says car had lien.
They said, any buyer could call and they would give them correct info
BUT if I wanted a new title without lien notice, I could get new title for $35.
Same as if I lost it

I thought it would be better in the future to have a clean "written" title, in hand in case I sell at some point.

So I paid the $35 for a new printed copy, with lien removed
entire thing took 10-15 min, right at window
was amost to easy

To get a clean printed title copy, is your choice.

[rscalzo]

I have to bring the title to the DMV and pay $60 to have them remove the lien

I've sold and traded several cars over the past years and never had to do that. Was the lien applied through someway other than the organization financing the car? that makes no sense.

Try posting the letter online (but delete the personal info first). That may clear it up. Every title always had a notation, signature and stamp stating the title was clear. While I could have applied for a replacement title with no notation, there is no need to do so.

Honda removes the lien, and sends me the title.

That would be impossible was the lien notation is posted on the title when it clears from the manufacturer. The financial organization cannot manufacturer a new title. Only the DMV can issue a title.

[PATTY565]

Originally Posted by ansky

I recently paid off my car and received the title in the mail. I thought I was done and could now file away the title. Not so. According to the letter that came with the title (and the conversation I had with Honda Financial over the phone), if I ever want to sell or trade in the vehicle, I have to bring the title to the DMV and pay $60 to have them remove the lien from the vehicle. The title I'm holding already had an $85 fee. If I'm holding the title why does the DMV have to do an additional step? How is there still a lien if I paid off the car from Honda Financial? This makes no sense to me. The way I thought it worked was, I pay off the car, Honda removes the lien, and sends me the title.

Honda should have released the lien on the front of the title. You should see a stamp and signature. You do not need to get a new title and you can sell it. They do not send you a new title. They just release the lien on the old title. You can file it away if the lien is released on the front of the title.