What procedures need to be completed after repaying a car loan?
3 Answers
After repaying a car loan, the following procedures need to be completed: The borrower needs to go to the local vehicle management office to cancel the mortgage registration and retrieve the vehicle title certificate, which will officially make the car the property of the owner. To cancel the mortgage registration, the borrower must prepare the following documents: valid identification of the borrower and vehicle owner, the loan contract signed with the bank, the loan repayment card, and the original vehicle registration certificate. Mortgage cancellation process: After the loan is fully repaid, the borrower needs to obtain the vehicle registration certificate, a power of attorney provided by the bank, and the organization code certificate from the bank. Then, the owner must personally take the registration certificate to complete the mortgage cancellation process. Obtaining the registration certificate: After the mortgage cancellation is processed, the registration certificate will note the cancellation of the mortgage in the registration column, officially making the car the sole property of the owner.
The top priority after paying off your car loan is retrieving the vehicle registration certificate (green book)! Remember to proactively contact the financial institution to confirm the final repayment date. Typically, the loan clearance certificate and green book will be mailed to you within 1-3 weeks. Once you receive the green book, you must visit the DMV to complete the mortgage release procedure. Bring your ID card, vehicle license, and the original mortgage release documents provided by the financial institution. I specifically called to make an appointment at the DMV, and it only took half an hour to complete. The staff also stamped the green book with a mortgage release seal. Don’t forget to contact your insurance company to change the policy’s first beneficiary—I overpaid my premium for two months before realizing the beneficiary needed to be updated to myself. As a final step, check the mortgage release status on the traffic management app 12123; seeing ‘Normal’ will give you peace of mind. It’s best to complete these procedures within three months, as delays might affect selling the car later.
Many people mistakenly think that paying off the car loan is the end of the process, but there are three crucial steps to follow. First, urge the financial institution to send the loan clearance certificate and the release authorization letter. When I encountered unresponsive customer service, I went directly to the bank counter to obtain them. Second, make sure to personally complete the release of the lien at the DMV during working hours. Note that some cities require advance appointments, and remember to bring all original documents and copies. The third step, often overlooked: check the removal of GPS trackers. Last week, while helping my brother, we found two hidden GPS devices still on his financed car, so we promptly contacted the original loan company to remove them. Finally, remember to update the insurance beneficiary and ask the 4S dealership to update the lien status in the maintenance records to avoid affecting the warranty.
