Lower your car payment in New York

What’s different about refinancing a car loan in New York

Vehicle titles in New York are issued by the New York State Department of Motor Vehicles (NYS DMV).

• New York's DMV states that once the vehicle loan has been paid in full, the lienholder must promptly send the owner proof of lien satisfaction known as a lien release. Getting a fresh lien-free title afterward is optional, since the owner may instead keep the original release attached to the existing title and hand it to a future purchaser.

  Source: New York State DMV — Certificate of Title

• A lender perfects its interest by filing a Notice of Lien (form MV-900) with the New York DMV, and records satisfaction using a Notice of Recorded Lien (MV-901) signed by an authorized officer, or a signed letter on lienholder letterhead. Owners who mail the original release with the original title receive a certificate showing no lien in roughly sixty to ninety days.

  Source: New York State DMV — Add or Remove a Lienholder

• New York Vehicle and Traffic Law § 2121 requires a lienholder, upon satisfaction of a security interest, to execute a release immediately upon clearance of payment and deliver it to the owner. Where a dealer arranges payoff and no release issues, the Commissioner must issue a duplicate or lien-free certificate within no more than fifteen business days of receiving all required information.

  Source: NY Vehicle and Traffic Law § 2121 — Release of Security Interest

• Under New York's Motor Vehicle Retail Instalment Sales Act, a buyer may pay the contract in full at any time before maturity of the final instalment of the time balance. On prepayment the buyer must receive credit for the unearned portion of the credit service charge, subject to a statutorily fixed acquisition-cost deduction set out in the section.

  Source: NY Personal Property Law § 305 — Credit Upon Anticipation of Payments

• Within seventy-two hours after a motor vehicle under a retail instalment contract is repossessed or voluntarily surrendered, the contract holder must personally deliver or mail the buyer written notice at the last known address. That notice must state the buyer's entitlement to redeem, the amount necessary to redeem, and a name, address and telephone number for obtaining redemption information.

  Source: NY Personal Property Law § 316 — Notice of Buyer's Redemption Rights

• Before disposing of repossessed collateral, New York's Uniform Commercial Code requires the secured party to send a reasonable signed notification of disposition to the debtor and any secondary obligor. In a consumer-goods transaction that notice must also describe any liability for a deficiency and supply a telephone number for learning the amount required to redeem.

  Source: NY Uniform Commercial Code § 9-614 — Contents and Form of Notification, Consumer-Goods Transaction

These are general procedural facts about New York, 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.