Car Titles

How does the whole "car title" thing work?

I bought a car from a relative. I went to a bank, got a car loan to pay off my relative's balance, and now that bank serves as the lien holder. Am I supposed to get the car title now? Or is the bank holding it until I pay off the car in full? Also, without the car title how can I get a new tag for the car?

Public Comments

1. The bank will hold the title until it is paid for in full. Once that is done, you go to the bank and they will sign the release of lein on the title and give it to you. You do not need the title to buy tags. That is done with the registration, which should be in your name.
2. First the bank holds title until it is payed off. Second yes you need a new tag.
3. When you buy the car, the seller will have to sign the title, or a power of attorney. You will receive the title and take it to the DMV, who will send the new title to your lender. Then your bank will get the title. You will have to sign for a title application, which you use to get your registration and plates. Your name will be on the title and the bank will be listed in the lien holder. The bank will hold the title until the loan is paid in full. It can be complicating if you can not physically go to the sellers lien holder. I hope this helps. Here is a link with more information: http://www.theautoevaluator.net/Resources.html