Lower your car payment in California

What’s different about refinancing a car loan in California

Vehicle titles in California are issued by the California Department of Motor Vehicles.

• California DMV keeps Certificates of Title in an electronic format in a database instead of in a physical location, and when the lien is satisfied a lien satisfaction notification is sent to DMV so the title is issued automatically to the registered owner, or to a new lienholder if one is being added.

  Source: California DMV - Electronic Lien and Title Program

• The Lien Satisfied/Legal Owner/Title Holder Release form (REG 166) cannot be used for a vehicle with a paperless title or a vehicle that is two model years or newer, and the legal owner interest for a vehicle two model years or newer can only be released using a Certificate of Title.

  Source: California DMV - Form REG 166, Lien Satisfied/Legal Owner/Title Holder Release

• Any change in ownership or lienholder must be reported to the California DMV within 10 days and the title must be updated.

  Source: California DMV - Title Transfers and Changes

• Before a repossessed or surrendered vehicle is disposed of, at least 15 days' written notice of intent must be given to all persons liable on the contract, and that notice must state either that there is a conditional right to reinstate the contract or that there is none, and must set forth the right to redeem the vehicle by paying the indebtedness in full.

  Source: California Civil Code section 2983.2 (California Legislative Information)

• After a borrower defaults, California law lets the lender take back the vehicle either through the courts or with no judicial process at all, so long as the repossession is carried out without a breach of the peace. No court order is required for the peaceful route.

  Source: California Commercial Code Section 9609 (California Legislative Information)

• For a loan secured by a lien on a motor vehicle, California ties the borrower's deficiency liability to timing: the lender must give its written notice of intent to dispose of the repossessed or surrendered vehicle within 60 days of repossession or surrender. The same section lets the borrower use a lender-supplied form to request an additional 10 days to redeem.

  Source: California Financial Code Section 22328 (California Legislative Information)

• Under California's motor vehicle sales finance law, a person liable on a repossessed vehicle contract has a conditional right to reinstate it, and the holder may not accelerate the maturity of the balance before that right expires. Reinstatement is limited to once in any 12-month period and twice during the contract term.

  Source: California Civil Code Section 2983.3 (California Legislative Information)

• California lets two or more people hold a vehicle as co-owners either conjunctively, using the word "and," or in the alternative, using the word "or." When the names are joined by "and," the Vehicle Code requires the signature of each co-owner to transfer title to the vehicle.

  Source: California Vehicle Code Section 4150.5 (California Legislative Information)

• A licensed California repossession agency must make a complete and accurate inventory of personal effects found inside a recovered vehicle and get it to the debtor, generally within 48 hours of the recovery. It also needs the debtor's written authorization before releasing those belongings to anyone other than the debtor.

  Source: California Business and Professions Code Section 7507.9 (California Legislative Information)

These are general procedural facts about California, 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.