[KptMarchewa]

Isn't it reversed: that the repossession takes place because the legal title to the vehicle changed, due to the contract being broken by lack of payment?

[simonh]

Correct. I meant when the repossession order is issued.

[jemfinch]

This isn't how it works in the US. In the US, the car is titled to the bank until the loan is paid in full, then the bank transfers the title to you.

[jsjohnst]

That isn’t correct. The car is titled to you, the bank is added as a lien holder in a separate part of the title. Happy to show proof if desired.

[caseysoftware]

If the car was titled to the bank, they would have to be involved and would be listed in the registration process with the state getting plates, etc.

You are the owner, they simply have a lien on the vehicle which is noted on the title. Once you pay off the loan, they send you information to get the lien removed and a clean title.

[refurb]

Is that state specific? I recall some banks holding liens against titles instead?

I recall buying a used car where the bank lien had to be removed prior to transfer.

[foobarian]

It could be we're not distinguishing lease vs. finance in these threads. In my experience in Massachusetts, lease titles were in a holding company's name, while financed vehicles were in my own.

P.S. Looking around a bit there is a lot of variation on how this works depending on locale. So I guess lease vs. finance is just another way things can differ out there.

[refurb]

I wouldn’t be surprised it varies a lot. Just vehicle registration varies. In California the plate stays with the car, but in other states new plates are issue and old plates move to the original owners new car.

No doubt it would be fascinating to see how each state does it. I only have experience with a few.

[simonh]

Ah, my apologies. I'm a Brit.