Lower your car payment in Connecticut

What’s different about refinancing a car loan in Connecticut

Vehicle titles in Connecticut are issued by the Connecticut Department of Motor Vehicles (CT 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 a lienholder is recorded on a Connecticut vehicle title, the Department of Motor Vehicles issues a new certificate of title and sends it directly to the lienholder listed, so the lender holds the paper title for the life of the loan rather than the registered owner.

  Source: Connecticut DMV - Make changes to a car title at the DMV

• After a Connecticut auto loan is satisfied, the DMV states an owner may simply keep the stamped paid certificate of title returned by the lienholder and use that same document for a future sale or transfer, without applying for a replacement certificate.

  Source: Connecticut DMV - Make changes to a car title at the DMV

• To have a Connecticut title reissued with the lien removed, the DMV requires a lien release letter on the lending institution's letterhead showing the owner's name, the vehicle year, make and identification number, stating the loan has been paid in full, and signed by an authorized agent.

  Source: Connecticut DMV - Make changes to a car title at the DMV

• Connecticut lets titled owners request a replacement certificate of title, but where an outstanding lien exists the DMV directs that the lienholder shall apply for the replacement title with a power of attorney and by mail only, and a lien release letter must accompany the form when a lien is listed.

  Source: Connecticut DMV - Replace your title

• The Connecticut Department of Banking explains that a vehicle lender may serve a notice of intention to retake not less than ten days before repossession, and that the notice must state the buyer is in default and designate the obligations required to cure the default, including the payment amount and the date by which it must be performed.

  Source: Connecticut Department of Banking - Vehicle or Boat Repossession Scenarios

• Where a Connecticut lender repossesses without giving that advance notice, the Department of Banking says the holder must retain the vehicle for fifteen days within the state, during which the borrower may bring the payments current, plus retaking and storage expenses, and reclaim it under the original contract terms because the loan cannot be accelerated.

  Source: Connecticut Department of Banking - Vehicle or Boat Repossession Scenarios

• A repossessed Connecticut vehicle that is not redeemed must be resold not less than fifteen days and not more than one hundred eighty days after the repossession, with at least ten days notice of the sale to the buyer, and the proceeds are applied first to resale expenses, then to retaking and storage expenses, then to the contract balance.

  Source: Connecticut Department of Banking - Vehicle or Boat Repossession Scenarios

• Connecticut's DMV states plainly that it does not participate in any electronic title or electronic lienholder program and is not able to receive an electronic title or lienholder record, so a refinancing lender should expect a paper certificate of title to be mailed.

  Source: Connecticut DMV - Proof of ownership requirements for vehicles

These are general procedural facts about Connecticut, 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.