Understanding Title Holding States for Vehicles

If you are in the process of purchasing a vehicle that is not fully paid off, it's important to understand how title holding works in various states. This article provides an overview of states where customers can possess the vehicle's title despite it being under a lien.

What Are Title Holding States?

Title holding states allow car buyers to have possession of their vehicle’s title even when there is still an outstanding loan or lien on it. In these situations, the lienholder retains a legal interest in the vehicle but does not physically hold onto the title document.

States That Allow Title Holding

The following states permit customers to hold titles while still owing money on their vehicles:

• Kentucky
• Minnesota
• New York
• Maryland
• Missouri
• Oklahoma
• Michigan
• Montana
• Wyoming

• Florida

The Role of Lienholders in Title Holding States

A lienholder is typically a bank or financial institution that has provided financing for your vehicle purchase. While you may have physical possession of the title, remember that until your loan is fully paid off, the lienholder maintains certain rights over your vehicle.

Your Responsibilities as a Vehicle Owner with an Outstanding Loan

• You must continue making timely payments on your auto loan.
  
• You should keep insurance coverage active as required by both state law and lender policies.
  
• If you decide to sell or transfer ownership of the vehicle, ensure all necessary steps are taken to satisfy any liens before completing such transactions.
  

If You Need Assistance...

If you require further information about title holding states or need assistance with other automotive-related topics, feel free to reach out! Understanding these regulations can help protect your investment and ensure compliance with state laws regarding motor vehicles.