Question - Lien on title in Connecticut

trf111

I'm considering purchasing a used vehicle that has two previous owners. The Carfax report clearly states it had a lien on it a couple of years ago (2012), right around the time that the second owner came into possession. The Carfax report then goes on to state that the vehicle was registered in 2013 and again in 2014. No further comments from the report about the lien.

I asked the seller to provide documentation that the lien has been cleared. They stated that they couldn't show me the title (it was in a locked office and the person who had the key had left for the day), but under Connecticut law, if there is a lien on the vehicle, then the bank holds the title. So if they have the title, then that, in and of itself, signifies that the lien has been cleared. They also stated that it's their company policy not to sell vehicles without holding the title.

Their argument is in two parts, then: (1) if they have the title then the lien has been cleared; and (2) they have a policy that they don't sell without having the title, so they must have it, even though it was behind a locked door at the time that I was in the shop.

I can evaluate part #2 on my own (go back to shop and verify they possess the title). I am looking for advice on part #1. Is this accurate, that in some states (including Connecticut), if there's a lien then the bank holds the certificate of title, and another person may hold the certificate of title only if the lien has been cleared?

Thanks very much!!

kyfdx

I really can't answer your lien question. In my state, the lender registers the lien with the state, and then it shows on the title. I have heard of banks holding title in other states, but no specific information about Connecticut.

CarFax might show a lien on any car that has previously been financed, but it won't show the release of lien (at least, not on any of the CarFax reports that I've seen).

ray80

Haven't had a vehicle loan in a while here in CT, but when I did the lender held Title until loan paid off.

kyfdx

@ray80 said:
Haven't had a vehicle loan in a while here in CT, but when I did the lender held Title until loan paid off.

Thanks for the info!

trf111

Yes, thanks for this answer!