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This isn't how it works in the US. In the US, the car is titled to the bank until the loan is paid in full, then the bank transfers the title to you.
by jemfinch 5y ago
This isn't how it works in the US. In the US, the car is titled to the bank until the loan is paid in full, then the bank transfers the title to you.
- simonh 5y agoAh, my apologies. I'm a Brit.
- refurb 5y agoIs that state specific? I recall some banks holding liens against titles instead? I recall buying a used car where the bank lien had to be removed prior to transfer.
- foobarian 5y agoIt could be we're not distinguishing lease vs. finance in these threads. In my experience in Massachusetts, lease titles were in a holding company's name, while financed vehicles were in my own. P.S. Looking around a bit there is a lot of variation on how this works depending on locale. So I guess lease vs. finance is just another way things can differ out there.
- refurb 5y agoI wouldn’t be surprised it varies a lot. Just vehicle registration varies. In California the plate stays with the car, but in other states new plates are issue and old plates move to the original owners new car. No doubt it would be fascinating to see how each state does it. I only have experience with a few.
- jsjohnst 5y agoThat isn’t correct. The car is titled to you, the bank is added as a lien holder in a separate part of the title. Happy to show proof if desired.
- caseysoftware 5y agoIf the car was titled to the bank, they would have to be involved and would be listed in the registration process with the state getting plates, etc. You are the owner, they simply have a lien on the vehicle which is noted on the title. Once you pay off the loan, they send you information to get the lien removed and a clean title.