What procedures need to be completed after paying off the car loan?
2 Answers
After paying off the car loan, you need to complete the vehicle release of mortgage procedures. When purchasing a car with a loan, the "Motor Vehicle Registration Certificate" (commonly known as the green book) is mortgaged to the lending institution, while the vehicle itself and the vehicle license remain in the owner's possession. Many people mistakenly believe that simply repaying the loan is sufficient, but in reality, it's necessary to visit the lending institution to complete the release of mortgage procedures and retrieve the green book. The materials required for the vehicle release of mortgage procedures include: 1. Vehicle Registration Certificate; 2. Original "Motor Vehicle Mortgage Registration or Pledge Filing Application Form" with the mortgagee's official seal; 3. Identity documents and copies of both the vehicle owner and the mortgagee; 4. Power of attorney from the mortgagee with an official seal.
When I just paid off my car loan, I was a bit flustered. The first step was to contact my loan bank and ask them to send me a loan clearance letter. This letter must be stamped with the bank's seal to prove that the debt has been completely cleared. Then, I went to the DMV to update the ownership, removing the information that was previously mortgaged to the bank, so the car is now 100% in my name. At the same time, remember to update the car insurance information; because the owner has changed, the insurance company may adjust the premium or coverage. I also checked my credit report to ensure the loan was marked as closed, avoiding any unexpected credit issues in the future. Finally, I made copies of all the documents and kept them safe to prevent loss. The whole process is best completed within a month, otherwise, there might be trouble during the annual vehicle registration.
