Your guide to vehicle titles & liens

A title is perfected when it officially lists PenFed as lienholder with your state.

Your state’s motor vehicle agency issues vehicle titles. You receive one when you purchase a new or used vehicle from a dealer or private seller.

You must re-title your vehicle according to the new state's requirements. Contact PenFed to obtain a lien release or lienholder authorization letter. You’ll need to work with your new state’s motor vehicle agency to transfer the title and re-establish the lien.

Once your loan is paid in full, PenFed will release the lien. In electronic title states, PenFed processes the release electronically within 10 business days. For paper title states, PenFed will mail the original title with a lien release stamp to your address on file within 16 business days.

Provide the dealer with PenFed's lienholder name (listed in the state selector tool). Some dealers may list PenFed under variations. If issues persist, contact PenFed and we'll provide our lienholder information to the dealer.

Use the state selector tool to see if you need to mail any documents.

If you do not add PenFed as lienholder within 150 days from the loan origination date, your auto loan may be considered unsecured, and your interest rate and payment may increase.

Your interest rate may increase to 17.99% APR.

You must add PenFed as lienholder and complete the title process within 150 days of your loan origination date.

A lien gives PenFed a legal interest in the vehicle while your loan is active. Adding PenFed as lienholder secures your auto loan terms.

Yes, you can use a business name if the title lists the business name and an authorized agent for the business has signed the loan agreement.

For vehicles purchased out of state, you must complete the title and registration processes before adding PenFed as lienholder. Check your state’s requirements for next steps.

The Security Agreement refers to the last four pages of your signed Promissory Note and explains that the vehicle is being used as collateral.

You will need to complete any ownership changes before adding PenFed as lienholder. Check your state’s requirements for next steps.

You will need to transfer ownership to yourself before adding PenFed as lienholder.

If the loan does not list the vehicle owner as a borrower, the owner will need to sign the Security Agreement and additional lien placement documents.

You will be responsible for taxes and fees associated with the titling and registration of your vehicle, including lien placement. If PenFed completes lien placement on your behalf, this expense may be added to your loan as a fee.