I just paid off the loan on a car and the bank sent me a "loan satisfied" statement/letter. I went to DMV to get a new title and the DMV said, "save your money and don't bother with an updated title", and to just save the old title and letter.
My gut is saying I should get a new title that states no lien is present. Should I go back and demand the new title, or is DMV right?
Is a (1) no-lien title effectively the same as (2) a title showing a lien but paired with a lien release letter from the bank?
If you ever plan on selling the vehicle I would go ahead and get an updated title now to avoid problems in the future.
true, i would have to see a clean/clear title to hand over cash
That particular DMV clerk is WRONG, WRONG, WRONG. In fact, I'd take it up with either their supervisor, or call your state representative to complain. Even if you drive the car until the wheels fall off, you'll need a clean title to sell it to salvage.
You may have gotten the loan payoff letter. But some finance institutions have separate title companies hold the title and when the loan is satisfied the finance company/bank/ credit union etc. notifies them that the loan is done. And it's the title company that is supposed get you the cleared title sent to you when, but since another party may be involved in the process it can take a bit longer to get the title to you.
