After you refinance you'll be asked to complete steps to transfer your title. This process makes Capital One the lien holder on the title who has legal claim to your vehicle until your loan is paid off. This step is important because, if the title does not list the accurate lien holder at all times after refinancing, there are risks. These are the three major reasons to transfer your title as soon as possible and help prevent future risks.
- Challenges selling your vehicle. If you sell your vehicle after paying it off, you will need to transfer the title over to the new owner. In order to transfer the title over to a new owner, all the information on the current title must be accurate. This includes the most recent lender. Without this information, the buyer of your vehicle may have issues switching over the title and registering their vehicle.
- Issues with insurance payment if your vehicle is totaled. If your vehicle is totaled (total loss), your insurance company could delay or refuse payment if your title information is not correct. Learn more about total loss and how to navigate these situations.
- Delays in receiving your title upon payoff. After you’ve paid your account in full, the title is yours. If Capital One is not listed as the lienholder, you could experience a delay when receiving your official title.