Anyone Know Anything about Title's
 

So, I bought my X5 from out of town and had it shipped to Houston, Tx. My credit union (financer) asked me to take the paperwork to our County to pay taxes on the vehicle and get it registered. Well, after all of the red tape and everything (plus nearly $2K in taxes & fees), I finally get a title and it says "None" for the Lein Holder. Im thinking, wtf? So, my credit union wants me to fix it, and add them as the lein holder but the little devil on my right shoulder is saying "hold off"...

Are there any benefits to keeping the title as is or can this some how screw up my registration/insurance/etc down the road?

Kryptonite :thumbup:

correct me if i'm wrong, but if your credit union is the lien holder, by law, don't they have to be listed?

i don't know how your state works, but in PA if their is a lien you have to have full coverage on your vehicle. i'm sure you have it anyways...just thought i should mention it.

blackbeauty is right, it is illegal if a lien is held on the vehicle to not have it on the title. Usually people don't have the lien holder added to avoid the tax...of course the lien holder coming for vehicle repo is usually a little more costly. Get them added ASAP.

Depends on how the loan was taken. Did you borrow money and use the X5 as collateral? Or, did you borrow money unsecured and buy the X5 on you own? Either way, I doubt that even if the leinholder is not correctly listed on the title it will cause problems down the road. I would try to keep the title clear unless the credit union can prove that you intended to use the X5 to secure the loan. Good luck

The X was bought w/ funds from the credit union. they (of course) want their name on the title as a lein holder...

Why the resistance to having them added to the title as the lein holder, since in fact they are? Once the loan is paid off then they should note the title accordingly.

The title should also be in the lein holder's possession. When you ask their name to be put I doubt they will give the title to you.

That is the way it works here in VA, but I bought a car in TX and the same thing happened to me- there was no lienholder listed even though Ft. Hood credit union did the 12 month auto loan for me. In my case, I paid the car off in 8 months and it never was an issue, but maybe you shouldn't Mess With Texas, Kryptonite.

JV

Your insurance company sends a copy of the insurance binder to lienholder yearly or bi-yearly depending on your policy period. If they rely on the title cert for this information, it's possible that they won't send the binder to your finance company. Without proof of insurance, the finance company will automatically place an rider on your car for some ungodly amount of money. It's better to fix the title rather than wait for problems to occur because of this omission.

Good point. Just thinking that if the lienholder doesn't have the title, wouldn't that make it tough for them to sell the loan to another lender like they occasionally do?

JV