January 11, 2021
A Guide on How to Get Your Car Title to Apply for Title Loans in Alabama
When applying for a car title loan, you won’t be able to proceed if you’re not the titleholder or if you still owe payments on the car. The car title will include a record that you don’t own the car outright, known as a lien. Liens can also apply to a car’s title for loans made for repairs or money from excess parking tickets owed to the state. While what this means legally varies from state to state, title loans in the state of Alabama typically dictate you make all payments on your vehicle before getting full ownership of your car title. In this article, we will explain in more detail what a lien is, and how to remove it from your vehicle.
What is a Car Title Lien?
A car title is proof of ownership of your vehicle. When you owe money on your car and someone else owns the title, it is called a lien. This can result from getting an auto loan, a car title loan, you own money to a private owner or you owe the state money on your vehicle, usually because of parking tickets or other fees owed.
In the state of Alabama, you can’t get full ownership of your automobile title until all debts are paid off. You won’t be issued a title until the lien holder is completely paid off. That said, you can register an out-of-state car if the previous state issued you a title. It should be noted, however, that if the lien holder lives in the states of Michigan, Montana, South Dakota, or Wyoming, proof of title ownership must be presented at the time of application.
How do you Remove a Lien on a Car Title?
There are several methods you can use to remove a lien from your current vehicle. These solutions should show you how to get your car title clean of any lien.
The first and most obvious solution is to pay back all money owed on the car. This also applies to any money owed to the state.
Another solution is to meet or correspond with the titleholder/lien-holder and ask them to remove the lien. This can be from having a private meeting with the lien-holder, or a discussion with the loan company you used. Through this method, you can attempt to resolve the issue of the lien, and give full responsibility to the current car owner.
You can also ask the state to remove the lien on your car. This varies from state to state, but in the state of Alabama, you must present the proper documentation. This includes a completed lien release form that can be found on DMV.org. You must also present a copy of said title as well. Duplicates can be made through the Alabama Department of Revenue Motor Vehicle Division website. These must be submitted through the mail. There is a fee for processing.
With a mechanic’s lien, your best option is to address this in court. In a nutshell, a mechanic’s lien is when an auto mechanic places a lien on your car for unpaid services. This is allowed in the state of Alabama, but the practice can vary from state to state. This can be contested in court. A lawyer isn’t necessary, but it is important to present the proper documentation to the proper authorities. The court needs to be notified when all services have been paid off.
Why is Settling a Car Title Lien Necessary?
An often-asked question is “why is it necessary to settle car lien issues?” There are multiple reasons that one should settle any issues with their car title. One issue is you don’t own your car outright until the lien is removed and the car is fully paid off. This can make things complicated if you’re trying to sell your car or get car title loans in Alabama from providers such as Select Title Loans. While you can sell a car that still has a lien on it, it further complicates the matter as you don’t own it outright. In some states, you can’t even sell it until the lien is removed.
Another issue is getting the car insured. Since you technically don’t own the vehicle outright yet, the lien-holder may ask you to get at least minimal insurance, such as collision. This is to ensure that both their investment, and yours are protected, regardless of the condition of the automobile in question.
While the concept of removing a lien on your car may sound complicated, with the proper knowledge, it’s easy to navigate. As long as you are aware of what type of lien it is, have the proper arrangements made, and the proper paperwork filed, it should be an easy issue to resolve.
Car Title Loans in Alabama
If all of this sounds overwhelming, fear not. Our loan experts at Select Title Loans in Florence, AL are here to help you navigate the title loan application process. Contact us online today, or get started with our online info sheet. Then, come see us in-person and in just a few short minutes, you can drive away with the cash you need!