How to Release the Lien After Paying Off the Car Loan?
2 Answers
Bring the vehicle owner's ID card and the lien release documents mailed by the bank to the local DMV window to complete the lien release procedure. Below are some important notes regarding car loan lien release: 1. Timeframe for completing the lien release procedure: After paying off the loan, the lending institution will notify the borrower to complete the lien release procedure within one week. Required documents include the ID card, its copy, and the loan clearance letter. Typically, the lien release procedure can be completed within 1-2 weeks. 2. Remove the GPS device: When purchasing a car on installment, a GPS device is usually installed to prevent the owner from defaulting on the loan. After paying off the car loan, it is essential to remove all GPS devices from the car; otherwise, driving privacy could be completely exposed.
I just paid off my car loan and feel so much lighter. The lien release process is simple: first contact the finance company to get the loan payoff statement and vehicle title, which they usually mail or let you pick up within a week after repayment. With these documents, bring your ID and vehicle registration to the local DMV, take a number at the front desk, fill out a form, and it's done in about ten minutes with just a 20 yuan fee. After that, your car is free to sell or transfer anytime. I suggest not delaying - my friend forgot to remove the lien and wasted a whole extra week when trying to trade-in later. After paying off the loan, I also took my car for maintenance, checking brakes and tires to ensure safe, smooth driving. The whole process took less than a morning. The key point is that failing to remove the lien affects future transactions as the vehicle still shows as encumbered, creating unnecessary hassles. Better get it done early for good.
