It is normal for Florida and other state residents to go for a car loan, especially when bills are pressing and you got no instant source of revenue. Well, we are here to guide you on how to get car title after paying off loan in Florida
So, after going for a car loan, things have improved from your side and you need your vehicle’s title back. What is a car loan?
A car loan is a type of loan where the borrower needs to secure it by his or her vehicle. The lender usually holds the original title to your car to act as collateral in case you’re unable to pay the loan.
You shall not miss the services of your car since the borrower only holds the title while you use your car. The lender then places a lien on the title which shall last until you get to pay off the loan fully.
How to Get Car Title After Paying Off Loans in Florida – Car Titles and Liens in Florida
A car title is an electronic or paper legal document that proofs ownership of a vehicle. The details of your vehicle are accurately captured in this document.
Similar to most states, vehicle titles in Florida are handled electronically, you can request a paper title through the local DHSMV office.
A lien is the legal means through which lenders shall secure your vehicle. When you borrow a car loan, the lender, upon a signed mutual agreement with you, gets their information recorded alongside yours in the car’s title.
So, in case you are unable to pay, they can legally claim your car.
How Does a Lender Benefit From a Lien
The first and most obvious is that the lender gets a right to auction the property in case you’re unable to pay the loan in full.
The second is that it protects the lender from having the property owner selling such a property. Other lenders also get to know that the car is under lien to avoid fresh lending before you clear the first loan.
How Does the Electronic Lien and Title (ETL) Work
The ETL is a paperless means of handling liens and titles. This type of title exists electronically and is stored in a database for easy soft access. If your car has an electronic title in Florida, then you do not have to wait for any physical mailings completion of your car loan.
Your lender shall communicate to the FLHSMV online and the title transfers and updates shall be done electronically.
How Do You Remove Lien After Paying Off Your Car Loan in Florida
After making your last batch of payment, the rest clearance should be facilitated by your lender. The lienholder notifies the state motor vehicle administration that you’ve completed paying off your loan. The DMV then removes the lien from your car title.
All this process is paperless since the MDV holds your title electronically.
Therefore, your title shall be free of the lien. If you need a hard copy of your lien-free title, then you can go ahead to request it from on the state’s website or locally as explained earlier.
How Long Shall It Take for You to Receive Your Car’s lien-free Title
This one shall solely depend on your lender. Most at times, the lender takes enough time to a certain that the amounts are paid in full.
As mentioned earlier, Florida uses an electronic system that cuts out all the time-consuming paper works and physical mails. Therefore, you should be able to have your freed title in a couple of days.
Who Will Send You the Cleared Title, Is It Your Lender Or the DMV
This largely depends on the kind of title. For the paper system, the lender shall sign a release on the title and mail it back to you. It is your duty then to ask for a clean title after receiving the released one from your lender.
However, in Florida, the electronic system works, therefore all shall be cleared and updated online, you can go the extra mile in case you need a hard copy.
If your lender uses an electronic system, the DMV shall issue a clean title upon notification of completion of the car loan.
What to Do If You Cannot Find the Lienholder
Business is versatile and changing, so is the lending business. Sometimes, your lienholder might make some adjustments or go completely out of business. In case of such a situation, you shall have to check for the lienholders name and address online on the state’s website
Before Going for a Title Loan, Dig Out All Information of the Lender
If you are here to get acquainted with information beforehand, this is a word for you. Get to understand how the whole system works. Inquire to know every detail of the rates and agreements to be made between you and the lender.
This will help you from being caught unawares of an important part of such an agreement you overlooked.
What If I Completed Paying Off My Car Loan But Haven’t Received My Title Yet
The first question here is, have you made any effort to reach out to your lender? If your answer is no, then consider reaching out to them either physically or by mail. Your lender should automatically clear you once you have paid your loan in full.
If you do not receive a cleared lien update within 30 days of completing your car loan, then there might be a problem somewhere. Reach out to your lender or better still the FLHSMV
Paying the last batch of your car loan makes for one of the happiest moments. However, you shall have to take all the necessary actions described above.
Remember to give your lender some time for them to get things in order. You should be able to access your clean title again in 15-30 days. In case of an abnormal delay, contact your dealer or the relevant authorities as guided in the article.
We hope you now know how to get car title after paying off loan in Florida. Have a good time and safe driving, bye.