Lower your car payment in Indiana

What’s different about refinancing a car loan in Indiana

Vehicle titles in Indiana are issued by the Indiana Bureau of Motor Vehicles (BMV).

• When an Indiana lienholder holds a paper certificate of title, it must note the discharge of the lien on the title and deliver that title to the person listed as owner within ten business days after receiving final payment. Where the title is recorded electronically, the lienholder must release the lien electronically and separately notify the owner of the release, and failure to do either is a Class C infraction.

  Source: Indiana General Assembly, Indiana Code IC 9-17-5-1 (Satisfaction or discharge of lien; delivery of certificate of title;

• Under Indiana's Uniform Consumer Credit Code, a creditor or servicer must provide the borrower a written, accurate payoff amount for a consumer loan within seven business days, excluding public holidays and weekends, after receiving the borrower's written request. The payoff statement must show the date it was prepared and itemize the unpaid principal balance along with each separate charge or other sum included in the payoff total.

  Source: Indiana General Assembly, Indiana Code IC 24-4.5-3-209 (Right to prepay; payoff statement)

• An Indiana borrower may prepay in full the unpaid balance of a consumer loan, refinancing, or consolidation at any time without penalty. The statute allows a contractual prepayment penalty only for a consumer loan primarily secured by an interest in land, so paying off an existing vehicle loan in order to refinance it with a different lender carries no statutory prepayment penalty.

  Source: Indiana General Assembly, Indiana Code IC 24-4.5-3-209(1) (Right to Prepay)

• After a default, an Indiana secured party may take possession of the vehicle either through judicial process or without judicial process, but self-help repossession is permitted only if the lender proceeds without a breach of the peace. If so agreed, and in any event after default, the lender may also require the borrower to assemble the collateral and make it available at a reasonably convenient place.

  Source: Indiana General Assembly, Indiana Code IC 26-1-9.1-609 (Secured party's right to take possession after default)

• An Indiana borrower, co-signer, or other lienholder may redeem a repossessed vehicle by tendering fulfillment of all obligations secured by it plus the lender's reasonable expenses and attorney's fees. Redemption may occur any time before the lender has collected on the collateral, disposed of it or entered a contract for its disposition, or accepted it in satisfaction of the debt. In a consumer-goods transaction this redemption right cannot be waived.

  Source: Indiana General Assembly, Indiana Code IC 26-1-9.1-623 (Right to redeem collateral) and IC 26-1-9.1-624(c)

• Before disposing of a repossessed vehicle, an Indiana lender must send a reasonable signed notification of disposition to the borrower and any secondary obligor such as a co-signer. In a consumer-goods transaction that notice must describe any liability for a deficiency of the person receiving it and must give a telephone number from which the exact amount required to redeem the vehicle is available, plus contact information for further explanation.

  Source: Indiana General Assembly, Indiana Code IC 26-1-9.1-611 and IC 26-1-9.1-614 (Notification before disposition of collatera

These are general procedural facts about Indiana, 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.