What procedures do you need to go through after paying off your car loan?

After paying off your car loan, there are several procedures you may need to go through to ensure that the loan is officially closed and the title of the car is transferred to your name. 1. Obtain a lien release: Once you have paid off your car loan, the lender should provide you with a lien release document. This document serves as proof that the loan has been satisfied and the lender no longer has a legal claim on the vehicle. 2. Update the title: With the lien release in hand, you will need to update the title of the car to reflect that the lien has been satisfied. This may involve contacting your state's Department of Motor Vehicles (DMV) or equivalent agency to request a new title in your name. 3. Remove the lender from insurance: If your lender was listed as a lienholder on your car insurance policy, you will need to update your policy to remove the lender once the loan has been paid off. 4. Verify the satisfaction of the loan: It's a good idea to double-check with the lender to ensure that the loan has been fully satisfied and that there are no remaining balances or outstanding fees. 5. Keep documentation: It's important to keep all documentation related to the loan payoff, including the lien release, updated title, and any correspondence with the lender. These documents serve as proof that the loan has been paid off and can be helpful in case of any future disputes or questions about the car's ownership. By completing these procedures, you can ensure that the car loan is officially closed and that the title of the car is transferred to your name, giving you full ownership of the vehicle.