How to Clear a Lien on a GMAC Auto Loan

by Griffith Pritchard
A lien release means the car is totally yours.

Paying off that GMAC car loan can be an exhilarating experience, but to complete the process, a clear title is often issued as proof of ownership. A clear title allows you to freely sell or transfer the ownership of the car to another person when you want to trade it in later for a new vehicle or sell it. A title that still lists GMAC as a lien holder usually prevents any type of ownership transfer if you can't prove that the lien was paid off.

Lien Release Notification

Ally Financial, Inc., the new name for GMAC Finance, normally does a couple of things once a vehicle has been paid in full. It sends notification to the Department of Motor Vehicles in the state holding the title to let them know they no longer have a financial interest in the car. Ally is usually also required to send you a letter on the company’s letterhead stating that you have paid off the loan and the vehicle is now yours.

Electronic Title Transfer Program

An electronic title program allows Ally Financial to place and release liens on vehicles without having to go through the expense and efforts of using paper forms. New York State allows Ally Financial to follow these procedures and no longer issues a new title unless one is requested by the car owner and pays the fee to issue a new title. The lien release letter proves ownership along with the original title, to avoid having to purchase a new title.

Paper Lien Release

Some states still use a paper process to issue clear car titles. For example, Louisiana requires a Vehicle Application Form in which the vehicle owner attests that the vehicle has been paid in full. The form must be submitted to the DMV office along with a copy of the letter from Ally Financial proving the loan has been paid, a copy of the car registration and applicable fees that vary from district to district. The DMV in Louisiana will verify the documentation and send you a clear title.

DMV Requirements

Procedures for releasing GMAC liens depend on the state where the title to the vehicle is currently being held. All states want proof that the lien has been satisfied. Your local DMV office will be able to inform you of the specific requirements for processing lien release information in your area.

References

About the Author

Griffith Pritchard served as a senior branch manager and banking officer for M&T Bank. He specialized in small business and personal financial, credit and banking products. He also has extensive experience in small business sales and non-profit management. Pritchard is a graduate of Hobart College.

Photo Credits

  • Barry Austin Photography/Photodisc/Getty Images
bibliography-icon | raiffeisen-cards.ru icon for annotation tool Cite this Article

Related pages


differentiate between shares and debentureseic credit tableintangible tax florida mortgageaaa coverage for rental carswww ehow comis cigna hmo or ppodoes auto insurance cover vandalismrsu on w2horizontal equity in taxationco mingled fundihop stocksalliemae contactssn stolenms highway patrol drivers licenseach vs eft vs wirewhat does fica mean on my paycheckjuniper bill paylotto tax calculatorlease acquisition fee definition716 credit scoretefra lieneffective cost of borrowing calculatordelinquent payment credit scorefast food managers salaryadp totalpayshelters for women and children in atlanta gafood stamp balance floregon homesteading lawsaarp medicare rx savertexas statute of limitations on debtwyoming unemployment calculatorconvert usd to chinese yuanweight of gold bullioncost of podiatry treatmentboscov's credit cardirs form 8863 instructionshow to calculate sharpe ratioregister visa vanillaconsolidations accountingis routing number same as swift codeusaa bond fundsentergy bill pay numberannual percentage rate apr for purchases meaningpay off payday loans with installmentstudent loan tax refund garnishmentqwickrateappraisal fees deductibledutch auction processcalculating diluted earnings per shareirs forms w-2florida intangibles taxlottery annuity calculatorcampbell soup employee benefitswhat is accrued salariesirs tax form 8917stock buyoutdonate dryerwho pays for home appraisalsalary request letteraarp medicare saver plusunlevered discount ratehow to withdraw cash from american express cardohio shoplifting lawschryslerfinancial com online paymentusaa car rentalpnc bank lost cardwells fargo custom managementstate of illinois tax refund statusbearing synonymgmac com car paymentcurrent maturities of long-term debtscholarships for dead parentsfha loan manufactured home requirementshow much will i be taxed on my 401k withdrawalhow to withdraw money from atm using debit card

Related pages


differentiate between shares and debentureseic credit tableintangible tax florida mortgageaaa coverage for rental carswww ehow comis cigna hmo or ppodoes auto insurance cover vandalismrsu on w2horizontal equity in taxationco mingled fundihop stocksalliemae contactssn stolenms highway patrol drivers licenseach vs eft vs wirewhat does fica mean on my paycheckjuniper bill paylotto tax calculatorlease acquisition fee definition716 credit scoretefra lieneffective cost of borrowing calculatordelinquent payment credit scorefast food managers salaryadp totalpayshelters for women and children in atlanta gafood stamp balance floregon homesteading lawsaarp medicare rx savertexas statute of limitations on debtwyoming unemployment calculatorconvert usd to chinese yuanweight of gold bullioncost of podiatry treatmentboscov's credit cardirs form 8863 instructionshow to calculate sharpe ratioregister visa vanillaconsolidations accountingis routing number same as swift codeusaa bond fundsentergy bill pay numberannual percentage rate apr for purchases meaningpay off payday loans with installmentstudent loan tax refund garnishmentqwickrateappraisal fees deductibledutch auction processcalculating diluted earnings per shareirs forms w-2florida intangibles taxlottery annuity calculatorcampbell soup employee benefitswhat is accrued salariesirs tax form 8917stock buyoutdonate dryerwho pays for home appraisalsalary request letteraarp medicare saver plusunlevered discount ratehow to withdraw cash from american express cardohio shoplifting lawschryslerfinancial com online paymentusaa car rentalpnc bank lost cardwells fargo custom managementstate of illinois tax refund statusbearing synonymgmac com car paymentcurrent maturities of long-term debtscholarships for dead parentsfha loan manufactured home requirementshow much will i be taxed on my 401k withdrawalhow to withdraw money from atm using debit card
"].join(""));l.close()}catch(m){b.src=a+'d.write("'+loaderHtml().replace(/"/g,String.fromCharCode(92)+'"')+'");d.close();'}b.contentWindow.config=k;b.contentWindow.SCRIPT_ID=g},0)}}}(); window.usabilla.load("w.usabilla.com", "4a73c8c43a12"); /*]]>{/literal}*/