Should I have the title?

[schildi]

Hi All!

I purchased and financed a Rav4 Prime back in April. Financed through a local credit union at 1.49% for 4 years, and for some strange reason, the DMV just sent me the title to the car with no lien holder listed.

That's not normal, right? What should I do / what would you do?

Right now, my plan is to do nothing besides keep on paying on the loan, and lean back until I get contacted (if that happens).

[CCL]

Was it a regular auto loan? Sometimes my credit union gives me what they call "share covered loans." They are secured by my CDs rather than the vehicle, so I get a discounted rate. Other than that I wouldn't worry about it, either, unless you hear from them.

[minnesotapaintlady]

Not normal, but I wouldn't do anything about it either.

[schildi]

Yeah, it's a regular car loan, not secured by anything but the vehicle.

I have never seen this happen before.

Standing by and pretending nothing has happened is probably the best course of action to take.

[wvugurl26]

I would probably do nothing as long as possible. I refinanced my car from PNC to USAA in January. This is a 2 title state, one to owner and one to lien holder. I mailed mine in to USAA with the other documents. I know the DMV is super behind so I have just been waiting. I assume I should get a new title but maybe I have to request and pay for it? I got my registration renewal from the state in June just fine so I'm leaving it alone for now.

[TheOtherMe]

I would do nothing if I were you.  

If someone made a mistake, let them figure it out.

[bookkeeper]

Read your document carefully.  Some states send out a form that looks like a title, but the only thing it is good for is renewing your license and registration.  If it is indeed the title to your car, I would just put it away with your other important papers.  Some compliance person someday might call.  Paperwork of any sort in the time of Covid seems to be a very low priority. 

[schildi]

Aug 17, 2021 16:02:30 GMT -5 bookkeeper said:

Read your document carefully.  Some states send out a form that looks like a title, but the only thing it is good for is renewing your license and registration.  If it is indeed the title to your car, I would just put it away with your other important papers.  Some compliance person someday might call.  Paperwork of any sort in the time of Covid seems to be a very low priority. 

I am sure it's the title.

Top line on the document: "Vehicle Certificate of Title".

[Tiny]

Normally, I would try to straighten out a problem like this (as it might make the future easier)  - but the DMV and government offices and lenders are formidable bastions of bureaucracy.   So I would probably put the title and any documentation that came with it and the loan documents etc in a safe, easy to get to place, and let it ride - until I hear differently from the lender.     My fear of the consequences of doing battle with the bureaucracy is more than my fear of the consequences of just staying quiet and paying the loan as agreed. 

It might actually be easier to get it "fixed" when one of them notices there is a problem rather than try to have something fixed that they do not actually realize is a problem.    And maybe it's not a "problem"? 

I guess it only matters for Insurance on the car... I haven't had a car loan in a while - will your insurer ask about notifying the lender?  or does the Insurance company just do a "title check" to see if they need to notify the lien holder?  Do car loan lenders care if the vehicle is insured? 


 

[CCL]

IME the lender has contacted me when they haven't received proof of insurance coverage. My insurance company doesn't seem to care about it at all.

[andi9899]

Depends on the state. For example, KS keeps the title until you pay the car off but MO lets you keep the title while you're paying.

[tractor]

I typically get a letter from the bank asking for a copy of the title, if it does not have them listed as lien holder, they request a new title from the state. It typically takes a few months for them to catch up, but eventually they get around to it. Either way the loan is between you and them, so as long as you make the payments you're good.

They can still use your loan documents to repossess your vehicle, if needed.

[TheOtherMe]

The last time I had a car loan, the title was kept by the credit union until the loan was paid off.  At that point, the new title with no lienholder was issued to me.