What Does It Mean To Have A Lien-Free Vehicle Title?

When buying a car, the lien-free vehicle title is one of the most important pieces of paperwork you'll have. It's a legal requirement to show who legally owns the vehicle. Without one, there's nothing that legally states that you officially own it. And it is even more important to know whether or not your title is lien-free. If it isn’t, you can’t use your title for car title loans when you need money. Keep reading this article to learn what it means to have a vehicle title and what lien-free means.

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What Is A Lien-Free Vehicle Title?

A lien-free vehicle title, otherwise called a clear title, means you don't have any existing loans or liens on your vehicle. In other words, you don't have any official outstanding monetary burdens tied to the car – which means you are finished paying off the car. Understandably, it's one of the most desirable titles to have. People tend to believe that clear and clean titles are the same. However, that isn't the case.

While clear titles dictate the absence of financial burdens, clean titles show that everything is great with the vehicle. Your vehicle could need repairs, but they're minor, costing no more than the car is worth. Having a clean title means you might find it easier to acquire warranties for the vehicle and insurance. Plus, you'll be able to sell it easier as buyers will know they won't have to spend on major repairs soon after purchasing.

Now, a clear title, as we said, tells people that your vehicle is free of any financial burdens like loans or liens that you are still paying. If your vehicle has no outstanding debts or liens and is in great condition, your title may be clean and clear at the same time, which would be the best situation to have! However, if you are trying to get certain types of loans – such as car title loans from us at Cash Cow – your title must be clear and in your name before you can get approved.

What Are The Benefits Of Having A Lien-Free Vehicle Title?

The main benefit of having a lien-free vehicle title is you can sell the vehicle with ease later on if you decide that is what you want to do. And, as we said above, your lien-free title allows you to be eligible to get a car title loan from us. With a vehicle title loan, we are using your vehicle’s lien-free title as collateral to secure the money. One thing to note is that you can’t get title loans without liens, which is why your title needs to be free of liens so we can put one on and hold onto your title until you repay us.

How Do You Get A Lien Taken Off Your Title?

Now that you know how important a clear title is, you should know how to get a lien released from your title. The good thing is it isn’t difficult to get a lien taken off of your car’s title. All you have to do is make sure you pay off your lien in full. Once you do that, your lienholder should either give you your title certificate that reflects the lien release or a certified letter. Either way, you take the title – plus your car application, a copy of your registration, and a lien release fee – to the DMV.

What Is The Process Of Getting Car Title Loans?

Once you’ve gotten your clear title back from the DMV, you can easily begin the title loans process through the quick online form on our website. From there, one of our knowledgeable loan representatives will give you a call to go over the required items you’ll need to get through the rest of the process. This call will include setting up a vehicle inspection so we can then determine its condition and how much we could lend you if you are approved.

We will also assess your title and driver’s license or state-issued ID to determine if you qualify for approval. All of this can happen either at the nearest Cash Cow store location or at another location of your choosing – just let us know when we call what your preference is. If you are approved for this loan, we will go over the loan terms and help you finish the simple paperwork. Once you are done, you could get the money either on the same day or the next bank business day at the latest.

Get A Vehicle Title Loan With Us Today!

Knowing the details about your lien-free vehicle title is important. Once you know whether your title is lien-free or not, you will know what you can understand what financial options are available to you when you need emergency cash. This is vital especially if you need car title loans because we can’t issue title loans without liens! So, if you need between $300 and $1,400 to fund an emergency, fill out the Cash Cow online form to begin our simple and quick process.

 

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.