What to do after paying off the car loan? (tax, to live)

[Francois]

I have never heard this, but I've always financed through a bank. Is it different through a dealer?

[dealershipfinancemanager]

In NC, the financing institution is the lienholder and the purchaser (speaking specifically about a purchase, not the lessee on a lease) is the owner. And it doesn't matter if it was purchased from a dealership or not - they use BOTH manufacturer financial companies (i.e. Ford Credit) as well as third party banks (BOA, etc). Just got my title today and I'm the owner on mine - no dealership, no bank, just me. The bank was listed as the lienholder, and the lien release was signed by the bank. And you don't have to request a new title either - once the lien release is signed on the title, that is sufficient - however, you MAY request one with the lienholder and release removed altogether if you prefer, in which case the $15 fee applies. Regarding taxes, if the previous posts were correct (the dealer or bank 'owns' the vehicle on the title), then no sales tax would have been collected up front, as they would have been a re-seller and, therefore, tax exempt. But, as we all know, we pay the 3% up front because we are the owner up front. Fear not, concerned ones, you will only be required to pay a sales tax when you buy the vehicle - not when the lien is released. I'm snickering thinking about it. . . .

[4pawz1tail]

Just did this yesterday, 7/23/2014. After you pay off your car, take the title that you got from the bank to a NCDMV Vehicle and License Plate Renewal agency. You give them the title, show your driver's license, sign a document, and pay them $15. They will mail you a new title, in your name only, within a couple of weeks.

[ucctgg]

Originally Posted by PDD

.....This does not make sense and when something does not make sense that means it is probably not true.....

Are you new to the country?

[Dawter]

LOL, you guys are quite funny with all the stuff you come up with.

I paid off my SUV, then contacted the bank who I had the loan with, gave them my address and they
mailed me the Lien Release.
I then emailed my DMV office to ask how I can get the title.
She emailed me back that I should email her the Lien Release. She mailed
to me the title with my name on it and 2 days later I received it.
All for free!

[Sherifftruman]

Originally Posted by Dawter

LOL, you guys are quite funny with all the stuff you come up with.

I paid off my SUV, then contacted the bank who I had the loan with, gave them my address and they
mailed me the Lien Release.
I then emailed my DMV office to ask how I can get the title.
She emailed me back that I should email her the Lien Release. She mailed
to me the title with my name on it and 2 days later I received it.
All for free!

There's a good amount of wrong info in this 6year old thread no doubt (tmasek73 is the only one correct), but what works in one state doesn't work in other states. You being in Kansas and giving advice based on what you can do there means a hill of beans for people in NC.

[Jkgourmet]

Originally Posted by Sherifftruman

There's a good amount of wrong info in this 6year old thread no doubt (tmasek73 is the only one correct), but what works in one state doesn't work in other states. You being in Kansas and giving advice based on what you can do there means a hill of beans for people in NC.

Yes. One correction though. The fee is now $20.

[chaosnj]

I called the DMV on this one...
If you have the title and the lien holder has signed... technically that is all you need.

The reason people get a "free and clear" title is in case they lose the actual piece of paper that the lien holder signed saying you've paid off the loan. If you lose that paper and go to sell the car, then the NC DMV system will still show that there's a lien on the car... so you have to track down the lienholder and get them to agree that you paid it. If you are good about keeping your paperwork in order, then you don't NEED to get a free and clear title.

As of now (Nov 20, 2020) the fee to do this at the DMV is $21.50.
You can do this IN Person at the DMV or you can mail it in after you fill out the FORM MVR-8 (Application for removal of lien from the certificate of title). Hope this helps.

[Royal James]

Originally Posted by chaosnj

I called the DMV on this one...
If you have the title and the lien holder has signed... technically that is all you need.

The reason people get a "free and clear" title is in case they lose the actual piece of paper that the lien holder signed saying you've paid off the loan. If you lose that paper and go to sell the car, then the NC DMV system will still show that there's a lien on the car... so you have to track down the lienholder and get them to agree that you paid it. If you are good about keeping your paperwork in order, then you don't NEED to get a free and clear title.

As of now (Nov 20, 2020) the fee to do this at the DMV is $21.50.
You can do this IN Person at the DMV or you can mail it in after you fill out the FORM MVR-8 (Application for removal of lien from the certificate of title). Hope this helps.

You do realize the original post was from 2011?

[TheGoldenCheetah]

Originally Posted by Royal James

You do realize the original post was from 2011?

Necro thread or not, the info can still help anyone in the future that might need help with these questions.