Buying a car is a big investment, and many people take out auto loans to afford one. When you finance a vehicle, the lender places a lien on your title—meaning they legally own the car until the loan is repaid.

Once you pay off your loan in full, the lender removes the lien, and you receive a lien-free title. But why is this important? If you ever need quick cash, having a lien-free title allows you to qualify for a title loan in Tennessee.

Let’s explore what a lien-free title means and how you can use it to get a Tennessee title loan for fast financial relief.

What Does It Mean to Have a Lien-Free Title?

A lien-free title (also called a clear title) means you fully own your vehicle without any outstanding loans, judgments, or claims against it. This means:

• You can sell or transfer ownership of the vehicle freely.
• You can qualify for a title loan using your car as collateral.
• No lender or institution has a legal right to your vehicle.

When a vehicle has a lien, it means a lender holds legal rights to it. You cannot sell or use the title for a title loan until the lien is removed.

What Is A Lien?

A lien is a legal claim to a piece of property. It assures the lender that if you cannot make the payments or satisfy the agreements for this loan, they will be able to take the property and sell it to minimize their losses. If you can make the payments and complete the terms of the loan you will have a lien-free title.

Having a lien on your title will not affect your everyday usage of the vehicle. You can drive it, obtain insurance, and register your vehicle. You will be responsible for maintenance or any repairs needed on the vehicle.

If you stop or cannot make the required payments, the lender can repossess the vehicle. They can do this with or without notice, but most lenders will send out multiple notices before repossessing a vehicle.

Who Is The Lienholder?

A lienholder can be either a person or an institution that holds a legal claim against your property. Whatever lender you choose will be the lienholder for the vehicle you purchase. They will have a legal right to your vehicle until you satisfy the terms of the loan for that vehicle.

What Is A Lien Release?

When you have satisfied the terms of your loan the lender will authorize a lien release with the DMV. This release will remove the lien from your vehicle, and it will be put into your name. The lender will no longer have a legal right to your vehicle. You will have a lien-free title. This can also be referred to as a clear title or owning it free and clear.

You can also file for a lien release if you decide to sell the vehicle before the terms of the loan are satisfied. You will still be required to use the money obtained from the sale of the vehicle to repay the amount remaining on the loan. Once you have satisfied the terms of the loan any additional amount remaining from the sale will be yours to keep.

How Do You Get a Lien-Free Title?

1. Pay Off Your Auto Loan

The most common way to obtain a lien-free title is to fully pay off your car loan. Once your last payment is processed:

• Your lender notifies the DMV to remove the lien.
• You receive a new title showing you as the sole owner.

2. Request a Lien Release

If you paid off your auto loan but your title still shows a lienholder, you may need to request a lien release from the lender and submit it to the Tennessee DMV.

3. Buy a Used Car with a Clear Title

If purchasing a used car, check the title status. Buying a vehicle with a lien-free title ensures you won’t run into issues when applying for a title loan or selling the car later.

Need to verify a lien-free title? Visit the Tennessee DMV website to check a vehicle’s title status.

How to Get a Title Loan with a Lien-Free Title

If you have a lien-free title, getting a title loan is quick and simple.

1. Submit an Online Inquiry

Fill out a quick application on our website to get started.

2. Meet a Loan Representative

Bring your vehicle, lien-free title, and photo ID to the nearest Tennessee Title Loans, Inc. location.

3. Get Approved & Receive Your Cash

After a brief vehicle inspection, you’ll get a loan decision in minutes. If approved, you can receive your money the same day!

Start Your Title Loan Application Today.

Get a Tennessee Title Loan with a Lien-Free Title

A lien-free title means you fully own your vehicle—and that ownership gives you the flexibility to use it for a title loan if you ever need emergency cash.

Own your car free and clear?
Need fast cash for bills, repairs, or unexpected expenses?
Want to get up to $2,500 in as little as 30 minutes?

Apply for a Tennessee Title Loan Now and get the financial help you need today!

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.