Understanding Lien Releases: What to Do if Carvana Refuses

If you have recently paid off a vehicle through Carvana but are facing issues with the lien on your title, it’s important to understand the steps you need to take. This article outlines what a "paid in full" letter is and why obtaining an official lien release from Carvana is crucial.

What is a Paid in Full Letter?

A "paid in full" letter serves as proof that you have settled your financial obligations regarding a vehicle. However, this document alone may not resolve any outstanding lien issues associated with your car's title.

The Importance of a Formal Lien Release

The California Department of Motor Vehicles (DMV) requires formal documentation when addressing liens. Even if the lien holder does not appear on an out-of-state title, they must still be removed from California records before you can fully own your vehicle without encumbrances.

Why You Need an Official Lien Release

• Required by DMV: The DMV typically mandates that all liens be formally released for accurate record-keeping.
• Avoid Delays: Submitting only a paid in full letter may lead to delays or complications during registration processes.
• Simplifies Future Transactions: An official release ensures clear ownership status for future buyers or transactions involving the vehicle.

Your Next Steps

If you're experiencing difficulties getting Carvana to send over the necessary documents, consider taking these actions:

1. Contact Carvana Directly: Reach out via their customer service channels and request an official lien release explicitly stating that it's required for DMV purposes.
2. Create Documentation: Keep copies of all correspondence related to your requests; this will help establish proof should further action be needed later on.
3. If Necessary, Submit Your Documents Elsewhere: While submitting just the paid in full letter along with other documentation might seem like an option at either SPU or local DMV field offices, there’s no guarantee it will suffice based on standard requirements. Proceeding directly through proper channels is recommended for best outcomes.