If Buyer purchases a car from a dealership with financing, whoever provides the financing will have a lien on the title. However, what physically happens to the title? Does the dealer transfer the title to the Buyer on the day of the initial sale and then file a UCC financing statement to record their interest? Or does the dealer hold onto the title until full payment is made (or perhaps transfer the title to the Bank or other institution that provides the financing)?
2007-10-25 04:17:27 · 11 answers · asked by Nathan N 1 in Cars & Transportation ➔ Buying & Selling
When you get a loan for a vehicle the bank of financial institution sends the dealer the money. the dealer in turn sends the title to the bank. the title is titled in the buyers name but the lender holds the title as a lien until the vehicle is paid in full. this type of loan is known as a SECURED loan because the bank has something they can hold until their money is paid in full.
2007-10-25 04:28:37 · answer #1 · answered by Anonymous · 2⤊ 0⤋
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Who holds the title to the car when a car is purchased with financing?
If Buyer purchases a car from a dealership with financing, whoever provides the financing will have a lien on the title. However, what physically happens to the title? Does the dealer transfer the title to the Buyer on the day of the initial sale and then file a UCC financing statement to record...
2015-08-18 06:22:50 · answer #2 · answered by ? 1 · 0⤊ 0⤋
The title is yours, but what a lien does is ensures that those lending you the money have a say on what happens to your vehicle if you can't make the payments. As long as you owe the vehicle you need to ask your lending institution before you sell, transfer and so on for permission and they must grant it. If you sell your vehicle without asking your lending institution the amount you owe on the vehicle is due at that instant and if is not paid the vehicle cannot be transfer to anyone else, making you a felon if you cannot come up with the money.
2007-10-25 04:32:05 · answer #3 · answered by wiseornotyoudecide 6 · 0⤊ 0⤋
The dealer sends the title to the finance company because they own the car or truck until it is paid in full. ONce its paid in full then the title is yours. Easy.
2007-10-25 04:22:10 · answer #4 · answered by Kawainani 4 · 0⤊ 0⤋
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Holding title determines who owns the vehicle-check local laws, but I suggest that the title belongs to the finance company and it could be troublesome. if in doubt, don't-shady characters won't benefit you long term. Dodgy in samll stuff ALWAYS===dodgy in big stuff too.
2016-04-07 22:14:39 · answer #5 · answered by Anonymous · 0⤊ 0⤋
The absolutely free reverse vin check sites generally provide fake information. To get real information, money will have to be paid. The free searches provide fake information so they can get your email address to send spam.
Stay away from shady reverse vin check sites, most likely you won't get any information after you make the payment. Not to mention you won't get a report and you won't get an answer if you try to call for a refund. Stick with a reputable reverse vin check site like http://www.reversevincheck.net that has been around since 1995.
2014-09-25 08:51:32 · answer #6 · answered by Anonymous · 0⤊ 1⤋
It is generally supplied to the owner of the vehicle which in your case would be whatever company you financed the vehicle with.
2007-10-25 04:27:23 · answer #7 · answered by Jay P 7 · 0⤊ 0⤋
The institution that finances the auto holds on to it (in most cases).
2007-10-25 04:20:39 · answer #8 · answered by teamepler@verizon.net 5 · 1⤊ 0⤋
It depends on where you live. In NY you would hold the title but when we moved to NC wthout a "payoff letter" the financing company would hold it.
2007-10-25 04:23:48 · answer #9 · answered by ladydi171 2 · 0⤊ 0⤋
I would have thought that you would be the owner of the car - and the finance company would be the owner of you!
2007-10-25 04:27:09 · answer #10 · answered by Tony B 6 · 0⤊ 0⤋