Lower your car payment in Alaska

What’s different about refinancing a car loan in Alaska

Vehicle titles in Alaska are issued by the State of Alaska, Department of Administration, Division of Motor Vehicles (Alaska DMV), which records and releases liens on paper titles. That is worth knowing because a paper lien release adds mailing time between your old lender and your new one.

• When an Alaska auto loan is paid off, the lienholder must sign the release on the front of the certificate of title, or provide a separate notarized release letter accompanying the title. The Division of Motor Vehicles specifically warns that a "PAID" stamp alone is not acceptable, and the owner must then submit the released title with an Application for Title and Registration to have a clear title issued in the owner's name.

  Source: Alaska Division of Motor Vehicles — Lienholder Information

• Alaska records only one lienholder on the face of the vehicle title itself. A second or junior lender cannot be listed on the certificate and must instead perfect its interest through a Uniform Commercial Code filing at a local district recorder's office, which matters because a refinancing lender normally expects to occupy the sole recorded primary lien position on the title.

  Source: Alaska Division of Motor Vehicles — Lienholder Information

• Under Alaska's secured transactions law, after a borrower defaults the lender may take possession of the vehicle either in accordance with judicial process, or without judicial process only if it proceeds without breach of the peace. There is no requirement for a court hearing before a compliant self-help repossession, but a repossession that breaches the peace falls outside the statutory authorization.

  Source: Alaska Statutes AS 45.29.609 — Secured party's right to take possession after default (Alaska State Legislature)

• Alaska law gives the borrower, any secondary obligor, or another secured party the right to redeem a repossessed vehicle by tendering fulfillment of all obligations the collateral secures plus the lender's reasonable expenses and attorney fees. Redemption may occur any time before the lender has disposed of the vehicle, contracted for its disposition, or accepted it in satisfaction of the debt. In a consumer goods transaction this redemption right cannot be waived, even by later agreement.

  Source: Alaska Statutes AS 45.29.623 and AS 45.29.624 — Right to redeem collateral; Waiver (Alaska State Legislature)

• Before selling a repossessed vehicle in an Alaska consumer goods transaction, the lender must send a reasonable authenticated notification of disposition. That notice must describe the collateral and the intended method, time and place of sale, describe any liability the recipient has for a deficiency, and supply a telephone number from which the borrower can obtain the exact amount required to redeem the vehicle, plus a contact point for further information about the obligation.

  Source: Alaska Statutes AS 45.29.614 — Notification before disposition of collateral in consumer goods transaction (Alaska State

• After a repossession sale in Alaska, sale proceeds are applied first to the lender's reasonable enforcement expenses and then to the secured debt; the borrower is entitled to any surplus and remains liable for any remaining deficiency. In a consumer goods transaction the lender must send a written explanation showing how it calculated that surplus or deficiency, and must respond to the borrower's written request for one within fourteen days.

  Source: Alaska Statutes AS 45.29.615 and AS 45.29.616 — Application of proceeds; Explanation of calculation of surplus or defici

These are general procedural facts about Alaska, not advice about your loan. Rules change, and your lender’s own process may add steps — a licensed specialist can tell you what applies to your situation.