# BMW Financial Services & Title Lien Release



## magnumforc (Feb 23, 2011)

I just paid off my BMW and received my title in the mail from BMWFS. What was so very different from every other payoff and lien release that I have had over 40 years, is that BMWFS does not report your lien release to the State Department of Motor Vehicles. You must do that yourself, along with incurring fees of $15 for the release and $18 for a duplicate title here in California to do so.

I've had many other vehicles financed through banks and credit unions and they all have the title sent to you from the State DMV clear of liens. I believe the one from GMAC also came that way as well. 

In any event, the letter enclosed with the title warns that "to prevent future difficulties" you should send the title to the DMV to have a new title issued in your name only and have BMWFS removed. I called the DMV and found out that if you do not, BMWFS will remain on the title forever, as they do not transmit anything to the DMV showing they no longer have an interest in the vehicle. It's all up to you. 

Also, contact your insurance company immediately the day you receive your title and lien release, and have BMWFS removed as the lienholder. This is critical as if you should have an accident, the insurance company will pay BMWFS as the lienholder, and you may have to deal with that mess in getting your vehicle fixed. Better to take care of business before something creates a quagmire you needn't step into!


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## Tom K. (May 10, 2008)

Thanks for the heads up. I sort of figured that the service would be limited at the 0.9% rate I'm paying but I've never had to do that leg work in the past either.

Tom


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## magnumforc (Feb 23, 2011)

Tom K. said:


> Thanks for the heads up. I sort of figured that the service would be limited at the 0.9% rate I'm paying but I've never had to do that leg work in the past either.
> 
> Tom


I had the 1.9% rate; it's SOP for them according to the person I spoke to at BMWFS. I will get a refund on the difference in interest between the date they actually posted the payoff and the date the payoff was good through. A whopping $7.49...but it's still in my pocket and not theirs!


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## magnumforc (Feb 23, 2011)

Correction on the fees. Due to the dunce at the DMV stating the incorrect fee, I received a check in the mail for $18 from the State of Californication stating I overpaid. Then two days later I received the clear title in the mail. In the interim, the "new and improved" DMV website was online and actually helps in determining the correct fee. Once again, a State Employee gets paid for giving out the wrong information. Any wonder they won't give you their full name or employee number for reference? Sooo, *the correct fee is $15.00! *


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## Lynn_128i (Jun 13, 2011)

Thank you magnumforc for this information. We all appreciate it.


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## Sonnie (Feb 20, 2011)

It does not hurt a thing for the lienholder to be listed on the title, as long as they have signed releasing the title. I have been in the finance business for 27 years and VERY rarely do I get a title that does not have a lien release signed on it. If I do, it is generally because the customer paid cash for the car and never had it financed. I have never known of a any bank, finance company or credit union in these parts to do anything but immediately forward the title to the owner after the loan is paid off. Most owner want their title immediately. Most come in and pay us off and are holding their hand out for the title. We have released thousands and thousands of liens on titles over the years, never sent it to anyone but the customer and never ever had even one customer question it. They get ready to borrow on it again, they bring it to me just like I sent it to them. I am selling a vehicle next week and will give the title with the signed BMW FS lien release on it to the buyer. When you get the title back... place it in an envelope and put it in a safe deposit box or a safe place until you sell it or borrow against it again... no reason to spend any money to have it recorded at the state... unless you are OCB about it.


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## SARAFIL (Feb 19, 2003)

Sonnie said:


> It does not hurt a thing for the lienholder to be listed on the title, as long as they have signed releasing the title. I have been in the finance business for 27 years and VERY rarely do I get a title that does not have a lien release signed on it. If I do, it is generally because the customer paid cash for the car and never had it financed. I have never known of a any bank, finance company or credit union in these parts to do anything but immediately forward the title to the owner after the loan is paid off. Most owner want their title immediately. Most come in and pay us off and are holding their hand out for the title. We have released thousands and thousands of liens on titles over the years, never sent it to anyone but the customer and never ever had even one customer question it. They get ready to borrow on it again, they bring it to me just like I sent it to them. I am selling a vehicle next week and will give the title with the signed BMW FS lien release on it to the buyer. When you get the title back... place it in an envelope and put it in a safe deposit box or a safe place until you sell it or borrow against it again... no reason to spend any money to have it recorded at the state... unless you are OCB about it.


Does CA issue a physical title to the bank (which they would send to you when you pay off the car), or do they have electronic titles?

If you have a physical title (a piece of paper) and BMW has signed off releasing their lien, then I agree that you are technically ok to keep that and you'll have no problems transferring ownership in the future. You do not need a new title issued.

However, the bank will recommend that you apply for a new title that does not have a lien holder because it can make things easier for you in the future. For example, if you do not do so then the state has no record that the lien was satisfied and if you ever lose the title and need to apply for a duplicate you will need to call BMWFS to have them send you a letter saying that you've satisfied the loan before the CA DMV will issue a new title without the lienholder.


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## Sonnie (Feb 20, 2011)

I am not sure about other states, but in Alabama we do all the applying, recording liens, transfers, etc, via electronic forms (ETAPS), but follow up by submitting the physical title, which is processed and sent back to us.

As far as a lost title, yes, having the lien cleared would be helpful and eliminate the need for the letter of lien release from the lienholder, especially if the lienholder is a company that has went out of business, but those are rare cases.


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