After paying off an auto loan, how do I get the lien removed and title the vehicle in my name in TX? Texas

It is very common for Texas drivers to use auto loans to finance their vehicle purchases. Until the loan is paid off, the lienholder is listed as the legal owner on the title. Once the loan is repaid, however, you can get the lien removed and have the vehicle titled in your name.

Removing a Lien

After your final car loan payment has been made and you've satisfied all requirements of your initial loan agreement, the lienholder should mail you the vehicle title and a release of lien letter. You can receive a new car title by bringing these documents and a completed Application for Texas Certificate of Title to your county tax office, the state agency that handles such DMV matters. Most likely, you won't need to bring the bill of sale.

New titles do come with a fee you must pay when you make the application to have a new TX vehicle title issued in your name. Contact your county tax office for details regarding the fee schedule for a title transfer.

Contact Your Insurance Company

Once you've paid off your auto loan and had a title issued in your name, it's a good idea to contact your car insurance company as well.

If you used a loan to purchase your vehicle, your policy most likely lists the lienholder as an additional loss payee. This means the insurance company would be obligated to issue claim checks to your lending institution if you were to have an accident, even though the bank no longer has an interest in your vehicle. Therefore, it's in your best interest to have your policy information updated as soon as possible.

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