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If you finance a car through a bank the bank owns the car, they have the title (US).
by themitigating 5y ago
If you finance a car through a bank the bank owns the car, they have the title (US).
- falcolas 5y agoNo (or rather, I have never seen this where I live in the US), they have a lien on the title. You still have the title. Source: Trying to get a bank to remove the lien after it’s fully paid off can be a real source of frustration.
- kube-system 5y agoYou will be listed as the owner on the title but it is not uncommon for the bank to physically hold the title. The way all of this works varies by state though. Some states issue a title electronically when the lien is released.
- zdragnar 5y agoThat varies by state. Where I live, the financing institution with the lien keeps the title until it is paid off. Kinda nice when you trade in a car you still owe a bit of money on, as you don't really need to bring anything with you other than the key and your drivers license; the dealer does all the work getting it cleared and transferred.
- maxerickson 5y agoMy credit union has a lien on my car. The title is in my name. I guess it's different mostly in name though, they still have strong rights to the vehicle.
- jsjohnst 5y agoOnly if it’s a lease, if you have a standard loan YOU are the titled owner and the bank is a lien holder on the title.
- FireBeyond 5y agoIn nine states, this is not the case. The buyer has possession of the title (or electronic), and the bank has a lien on the vehicle.