Where is the vehicle registration certificate for a car purchased with a loan?
3 Answers
If the car is purchased with a loan, the vehicle registration certificate will be held by the lender. For example, if the loan is from a bank, the registration certificate will be mortgaged to the bank until the loan is fully repaid. More details are as follows: 1. Purchasing a car can be done through installment payments, which is an effective method for car manufacturers to capture market share. There are three common ways to do this. 2. The first method is through bank consumer loans, where you repay the loan in installments. The second method is through financing provided by the car manufacturer, where you repay the manufacturer directly. The third method is through financial leasing. 3. The first two methods are the most commonly used for car installment payments. Installment payments can also be applied when purchasing used cars, helping to reduce the financial pressure of buying a car.
Last time I took out a car loan, I was also confused about this green certificate issue. Actually, during the loan period, the vehicle registration certificate is basically held by the bank or finance company. After the DMV issues it, the dealer directly transfers it to them. I remember signing a mortgage agreement at that time, and the vehicle ownership technically belongs to the bank until the loan is fully repaid. They have specialized secure storage for such important documents, just like how property deeds are held by banks. For those who pay off the loan early, remember to proactively request the release procedures from them. When I went to the DMV to remove the lien, I brought the loan payoff statement, bank authorization letter, and ID card - the counter processed the filing in just five minutes.
As an auto loan officer, it must be clarified that the vehicle registration certificate after financing a car purchase is typically held by the lending institution. This is a standard industry practice because the vehicle serves as collateral to secure the financial institution's creditor rights. After repaying the final loan installment, borrowers should proactively contact the lender to obtain a loan clearance certificate. With this certificate and identification documents, they can then visit the DMV to complete the lien release process, at which point the registration certificate will be returned to the owner's custody. Note that some institutions may handle the lien release on your behalf, but it's advisable to personally monitor the progress.
