When you purchase a vehicle of any kind you will receive that vehicle’s title. Now what do you do? Where does the title go? Who should hold the title when you have a lien on the vehicle?

These are all good questions to ask. The title to a vehicle is a valuable piece of paper. You can’t legally acquire a vehicle  in most states without a title. You can’t sell the vehicle without a title either.

Each state has its own laws on how to legally acquire a vehicle. For some states, if a vehicle was made past a certain date, then a title is not necessary to get it legal, while other states require that you have a title in order to get it licensed.

If you borrow money in order to purchase a vehicle, the lender will usually require that you bring the title to them after you get the vehicle legal so they can hold the title until you pay your debt in full however, this is not the requirement for all lending institutions.

Most banks in Phoenix will ask you to call or come in on your last payment. This will give you a chance to pay off the loan completely, including any interest that had accumulated during the term of the loan. You will normally have to wait 7-10 days for the title to be mailed to you. This gives the bank time to release the lean on the title and mail it to you. Then you will need to take it to your local Arizona Motor Vehicle Department and get it titled without the lien on it. This will give you a free title to use to secure another loan in the future or you can sell it to another individual or car dealership with title in hand.

Short term loans do not always require security so you can hold on to the title yourself and still be able to get the vehicle you want. These types of loans are secured by your assets instead of the title of the vehicle. Once you obtain your vehicle, you can take the title to your local Arizona Motor Vehicle Department and get the title put in your name. You will have full ownership of this title throughout the time that you own it. When you are ready to sell or trade your vehicle, you just take the title with you, take the money from the sell and pay off your short term loan.