What happens if the car release time expires without completing the procedure?
3 Answers
Before completing the release procedure for the car, the owner cannot sell, transfer, or perform other operations on the vehicle. Without completing the release, the vehicle registration certificate will still show the car as being in a mortgaged state. In essence, the owner only has the right to use the vehicle and is not the legal owner. More details about car release are as follows: 1. Explanation one: Car release refers to the process of removing the mortgage registration from the vehicle management office. Once released, the car can be freely traded, as a mortgage record prevents free transactions and transfers. 2. Explanation two: A car is referred to as a mortgaged vehicle because it was previously registered as mortgaged at the vehicle management office. The mortgage record is directly reflected on the vehicle registration certificate, which contains detailed mortgage information.
I remember once my car loan was paid off but I didn't complete the lien release. When I wanted to trade in the car later, it became a hassle. At the DMV for the title transfer, they said ownership wasn't clear and I had to go back to the bank for documentation. Not only did it waste several days, but I also had to pay extra fees. If left too long, the lender might charge late fees or affect your credit score – I almost got penalized that time. My advice: contact the finance company immediately after loan payoff to remove the lien and get a lien release letter. Set a phone reminder so you don't forget. Though it seems minor, procrastination creates headaches and restricts your ability to sell/trade the vehicle freely. I definitely won't make that mistake again.
My buddy recently ran into this issue. After paying off his car loan, he didn't complete the lien release. Months later when trying to sell his old car, the buyer asked about the lien status, forcing him to accept a lower price, affecting the sale value. If left unattended long-term, financial institutions might consider it a default, increasing interest rates or damaging credit scores, which isn't good for future car purchases. I believe quick action is needed after loan repayment: check online procedures, contact the bank to unfreeze, and get it done fast. Don't wait until selling or transferring ownership to panic. Make it a habit - like how I note it in my diary after repayment for peace of mind. An incomplete lien release also involves safety concerns, like complications with insurance claims.
