What procedures need to be completed after paying off a car loan?
2 Answers
After paying off a car loan, the following procedures need to be completed: present the loan settlement certificate at the lending bank or financial institution to retrieve the motor vehicle registration certificate; visit the vehicle management office to remove the vehicle's mortgage status, etc. Below is a lot of information about car loans: 1. Introduction: A car loan refers to the loan issued by the lender to the borrower applying to purchase a car. Auto consumer loans are a new type of loan where banks provide RMB guaranteed loans to car buyers purchasing vehicles from their authorized dealers. 2. Loan term: The term for auto consumer loans is generally 1-3 years, with a maximum not exceeding 5 years. Among these, the loan term for used car loans (including extensions) must not exceed 3 years, and the loan term for dealer car loans must not exceed 1 year.
I just paid off my car loan and feel much more relaxed, but don't celebrate yet—you need to complete some procedures to fully own the car. First, contact your lending institution, such as a bank or financial company, to request a loan clearance certificate. They will provide official documentation confirming the repayment is complete. After obtaining the certificate, bring it along with your ID card, driver's license, and vehicle registration certificate to the local DMV to complete the lien release process. This step is crucial because it removes the mortgage record from the vehicle, ensuring clean ownership and avoiding future issues when transferring or selling the car. I once had a friend who didn't handle this promptly, and when selling their old car, the buyer discovered an outstanding lien, causing the deal to fall through and wasting time. Once completed, check if the registration certificate is updated correctly—you may need to photograph the backup documents. As a side note, since there's no loan now, your car insurance premium might drop a bit, so contact your insurer to adjust it. The whole process takes less than a day, so it's best to get it done early for peace of mind and security.
