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I'm looking to purchase a 2006 Honda Civic EX coupe and I've been negogiating with the salesman. I'm using my own financing and putting $4000 down. I tell him that I want to purchase title and license myself at DMV (why finance something that I can do myself?). I've also been told that dealers attach their own fees for the convenience of doing this at the dealership. After checking with the salesmanager, he tells me that by law, I'm not allowed to purchase this myself. He says that, by law, the purchase of title and license has to go through the dealership for cars that are financed or have a lien. Does anyone know if this is true?

2007-01-13 07:57:49 · 1 answers · asked by Tita 1 in Cars & Transportation Buying & Selling

1 answers

According to Illinois state law, paperwork for title, registration and taxes must be submitted by the dealership. They will charge you document filing fees but they can only charge a certain amount for that. I think that the main reason is that if you are financing a car, you should never be in possession of the Certificate of Origin or title yourself until you have satisfied your loan contract. Otherwise, what proof does the loan company have that you will have their lien added to your title? Of course, the two sources you should contact for more details are your local DMV and Dept of Revenue.
As a side note, in Illinois, dealerships can hold your paperwork for up to 21 days before they have to turn it in. This can cause delays in your processing and keep your correct info from hitting the DMV database for awhile. That is regulated by Revenue and is a good question to ask when you call them. You should ask the DMV if they send titles to lienholders so you know whether to expect your title back or not. And remember, once you have completed your loan contract, the title will be stamped paid and sent to you from them, not the DMV. If they lose your title they will send you a lien release instead. I recommend paying whatever fee the DMV charges to have the lien removed from the database and a clear title issued to you. It will save you hassles later if you should lose the title.

2007-01-13 08:21:12 · answer #1 · answered by jay_fox_rok_god 3 · 0 0

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