Lower your car payment in Washington

What’s different about refinancing a car loan in Washington

Vehicle titles in Washington are issued by the Washington State Department of Licensing.

• Washington law splits vehicle ownership into a registered owner and a legal owner, and RCW 46.12.540 directs that the department deliver the registration certificate to the registered owner and the certificate of title to the legal owner, or both documents to a person who is both.

  Source: RCW 46.12.540 - Certificate of title - Contents - Delivery (Washington State Legislature)

• When a Washington auto loan is paid off, the Department of Licensing explains that the lienholder usually sends the department everything needed to remove its name from the vehicle record; if the lienholder does not, the owner may bring the current Washington title carrying the lienholder's releasing signature, or a completed Affidavit of Loss/Release of Interest with the lienholder's notarized signature, to a vehicle licensing office to obtain a title in the owner's name only.

  Source: Washington State Department of Licensing - How to remove a lienholder from a vehicle or boat record

• Under RCW 46.12.675 a security interest in a Washington vehicle is perfected only when the department, a county auditor, or an appointed agent actually receives the application for certificate of title, the existing certificate of title, and the required fee, and the statute frames this filing as occurring within ten days after the security agreement is created; the department then changes the vehicle record and issues a new certificate of title naming the secured party, which is the step a refinancing lender must complete.

  Source: RCW 46.12.675 - Perfection of security interest - Procedure (Washington State Legislature)

• Washington follows Uniform Commercial Code Article 9 for auto repossession, and RCW 62A.9A-609 permits a secured party to take possession of the collateral after default either pursuant to judicial process, or without judicial process only if it proceeds without a breach of the peace, so self-help repossession is lawful in Washington but is conditioned on how the repossession is actually carried out.

  Source: RCW 62A.9A-609 - Secured party's right to take possession after default (Washington State Legislature)

• RCW 62A.9A-614 requires that in a consumer-goods transaction the notification sent before the repossessed vehicle is sold must describe any deficiency liability of the person receiving the notice, provide a telephone number from which the borrower can obtain the exact amount that must be paid to redeem the collateral, and give a telephone number or mailing address for further information about the disposition and the secured obligation.

  Source: RCW 62A.9A-614 - Contents and form of notification before disposition of collateral: Consumer-goods transaction (Washing

• RCW 62A.9A-623 gives the debtor, any secondary obligor, or another secured party or lienholder the right to redeem a repossessed vehicle by tendering fulfillment of all obligations the collateral secures together with the reasonable expenses and attorneys' fees described in the statute, but that right ends once the secured party has collected the collateral, disposed of it or contracted for its disposition, or accepted it in satisfaction of the obligation.

  Source: RCW 62A.9A-623 - Right to redeem collateral (Washington State Legislature)

• RCW 46.04.270 defines a legal owner as a person holding a security interest in the vehicle perfected under Washington law, which is why the lender ordinarily holds the certificate of title while a car loan remains outstanding.

  Source: Washington State Legislature, RCW 46.04.270

These are general procedural facts about Washington, 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.