Q:

What is an auto lien release letter?

A:

Quick Answer

An auto lien release letter verifies that a vehicle does not have a lien holder or no longer has a lien holder. It is actually a clearance letter. When a financial institution lends money for the purchase of a vehicle, that institution becomes the first lien holder.

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Full Answer

After the debt is paid in full, the lien holder issues the owner an auto lien release letter. The letter contains the vehicle's identification information like the VIN, the year, make and model, in addition to the lien holder's information. The letter is a legal document and should be filed at the appropriate driver's license office in which the lien was entered into.

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Related Questions

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    A:

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    How do I give back a financed car?

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    What is a lien on a car?

    A:

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    How do you pay off a GMAC auto loan?

    A:

    In 2009, GMAC banking changed its name to Ally Financial. The company's Global Automotive Services continues to offer financing for vehicle purchases and leases. Any automotive loans opened with GMAC are payable to Ally Financial.

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