Title-Holding vs Non-Title-Holding States
In 41 states plus DC, your auto lender holds the car title until the loan is paid off (title-holding states). In 9 states — Kentucky, Maryland, Michigan, Minnesota, Missouri, Montana, New York, Oklahoma, and Wisconsin — the owner keeps the title during the loan, with the lender's lien recorded on its face. The difference matters most when buying used from a private seller: in non-title-holding states, the title in the seller's hand can still carry an active bank lien.
By Sam Reynolds, Lead Researcher · Updated 2026-06-11
All 50 states
| State | Who holds the title during a loan | VIN & fee facts |
|---|---|---|
| Alabama | Lienholder (lender) | Alabama VIN check → |
| Alaska | Lienholder (lender) | Alaska VIN check → |
| Arizona | Lienholder (lender) | Arizona VIN check → |
| Arkansas | Lienholder (lender) | Arkansas VIN check → |
| California | Lienholder (lender) | California VIN check → |
| Colorado | Lienholder (lender) | Colorado VIN check → |
| Connecticut | Lienholder (lender) | Connecticut VIN check → |
| Delaware | Lienholder (lender) | Delaware VIN check → |
| District of Columbia | Lienholder (lender) | District of Columbia VIN check → |
| Florida | Lienholder (lender) | Florida VIN check → |
| Georgia | Lienholder (lender) | Georgia VIN check → |
| Hawaii | Lienholder (lender) | Hawaii VIN check → |
| Idaho | Lienholder (lender) | Idaho VIN check → |
| Illinois | Lienholder (lender) | Illinois VIN check → |
| Indiana | Lienholder (lender) | Indiana VIN check → |
| Iowa | Lienholder (lender) | Iowa VIN check → |
| Kansas | Lienholder (lender) | Kansas VIN check → |
| Kentucky | Owner (lien noted on title) | Kentucky VIN check → |
| Louisiana | Lienholder (lender) | Louisiana VIN check → |
| Maine | Lienholder (lender) | Maine VIN check → |
| Maryland | Owner (lien noted on title) | Maryland VIN check → |
| Massachusetts | Lienholder (lender) | Massachusetts VIN check → |
| Michigan | Owner (lien noted on title) | Michigan VIN check → |
| Minnesota | Owner (lien noted on title) | Minnesota VIN check → |
| Mississippi | Lienholder (lender) | Mississippi VIN check → |
| Missouri | Owner (lien noted on title) | Missouri VIN check → |
| Montana | Owner (lien noted on title) | Montana VIN check → |
| Nebraska | Lienholder (lender) | Nebraska VIN check → |
| Nevada | Lienholder (lender) | Nevada VIN check → |
| New Hampshire | Lienholder (lender) | New Hampshire VIN check → |
| New Jersey | Lienholder (lender) | New Jersey VIN check → |
| New Mexico | Lienholder (lender) | New Mexico VIN check → |
| New York | Owner (lien noted on title) | New York VIN check → |
| North Carolina | Lienholder (lender) | North Carolina VIN check → |
| North Dakota | Lienholder (lender) | North Dakota VIN check → |
| Ohio | Lienholder (lender) | Ohio VIN check → |
| Oklahoma | Owner (lien noted on title) | Oklahoma VIN check → |
| Oregon | Lienholder (lender) | Oregon VIN check → |
| Pennsylvania | Lienholder (lender) | Pennsylvania VIN check → |
| Rhode Island | Lienholder (lender) | Rhode Island VIN check → |
| South Carolina | Lienholder (lender) | South Carolina VIN check → |
| South Dakota | Lienholder (lender) | South Dakota VIN check → |
| Tennessee | Lienholder (lender) | Tennessee VIN check → |
| Texas | Lienholder (lender) | Texas VIN check → |
| Utah | Lienholder (lender) | Utah VIN check → |
| Vermont | Lienholder (lender) | Vermont VIN check → |
| Virginia | Lienholder (lender) | Virginia VIN check → |
| Washington | Lienholder (lender) | Washington VIN check → |
| West Virginia | Lienholder (lender) | West Virginia VIN check → |
| Wisconsin | Owner (lien noted on title) | Wisconsin VIN check → |
| Wyoming | Lienholder (lender) | Wyoming VIN check → |
State title-holding practices as commonly classified by state DMV procedures; electronic lien and title (ELT) programs are changing mechanics in many states — confirm with your state DMV for transactions in progress.
Buying from a private seller?
Decode the VIN free to confirm the car matches the title exactly, then run the $9.99 Full VIN Report for the federal record — open recalls, owner complaints, and service bulletins for that exact vehicle. Free decode · Full report
FAQ
What is a title-holding state?
A state where the lienholder (your auto lender) physically or electronically holds the vehicle title until the loan is paid in full. You receive the title only at payoff. 41 states plus DC work this way.
Which states are non-title-holding states?
Nine states: Kentucky, Maryland, Michigan, Minnesota, Missouri, Montana, New York, Oklahoma, and Wisconsin. There, the owner keeps the title during the loan — the lender's interest is protected by a lien printed on the title, which must be formally released at payoff.
Why does it matter when buying a used car?
In a non-title-holding state, a private seller can show you a title that still carries an unreleased lien — meaning the bank may still have a claim on the car. Always check the title face for lien notations and confirm a lien release. A VIN check confirms the vehicle's identity matches the title exactly; title brand and lien history live in the federal NMVTIS system.
How do I check a car title before buying?
Match the VIN on the dashboard, door jamb, and title character-for-character (a free VIN decode confirms the year/make/model belongs to that VIN), check the title face for brands (salvage, flood, rebuilt) and lien notations, and verify with the state DMV that the title is current. CarWhere's free state VIN-check pages list each state's title fees and inspection rules.