Who Holds the Car Title During a Loan? State-by-State Guide
Who holds the title to a financed car depends on the state's paper-title and electronic-lien rules. In 7 states — Kentucky, Maine, Minnesota, Missouri, Montana, New York, Oregon — the owner holds the paper title during the loan, with the lender's lien noted on its face. In the other 43 states and Washington, D.C., the owner does not: the lender holds the title, or — increasingly — the state holds it as an electronic title (ELT) that no one holds on paper until the loan is paid off. The table below shows, for every state, whether the owner receives a paper title during an active lien, who controls the title record, and the official state source.
By Sam Reynolds, Lead Researcher · Published 2026-06-11 · Updated 2026-08-19
Title-holding vs. non-title-holding states: a note on terminology
The labels “title-holding state” and “non-title-holding state” are used inconsistently across the web, and electronic titles have made them misleading: in most states the DMV now holds an electronic title and neither the owner nor the lender holds paper. For clarity, this page reports the actual procedure — whether the owner receives a paper title during a lien — rather than relying on those labels. Last verified August 2026.
Recent changes: Oklahoma became lender/title-holding on July 1, 2022; Wisconsin has routed lien titles to lienholders since July 30, 2012; Maryland (2024) and Michigan (2023) moved to electronic titles — so older “owner-held” lists that include them are out of date.
All 50 states & D.C.
| State | Paper title to owner during lien? | Who controls the title | Notes & recent changes | Official source |
|---|---|---|---|---|
| Alabama | No | Lender (paper or electronic) | The title is held by the lienholder during the loan — electronically if the lender is an ELT-registered agent, otherwise a paper title held by the lienholder — and released at payoff. | Alabama Dept. of Revenue — ELT FAQ |
| Alaska | No | Lender (paper title) | The paper title is mailed to and held by the lienholder during the loan; at payoff the lender releases the lien and returns the title so the owner can apply for a clear title. | Alaska DMV — Lienholder Information |
| Arizona | No | State DMV (electronic) | Arizona is all-electronic: under the mandatory ELT program no paper title is printed while a lien is active, and at payoff the title stays a digital eTitle unless the owner requests paper. | Arizona DOT/MVD — Vehicle Liens |
| Arkansas | No | Lender (paper title) | During the loan the paper title is held by the lienholder; at payoff the lienholder files an Official Release of Lien and the clear title issues to the owner (Act 926 of 2025 authorizes, but does not yet operate, an electronic system). | Arkansas DFA — Office of Motor Vehicle |
| California | No | State DMV (electronic) | California's mandatory ELT program means no paper title is printed during the loan — the DMV keeps the Certificate of Title electronically and releases it to the owner once the lien is paid. | California DMV — Electronic Lien and Title Program |
| Colorado | No | Lender or state (ELT varies) | A paper title is mailed to the lienholder, or held electronically by the state if the lender uses the voluntary ELT program; at payoff the state prints and mails the clear title to the owner. | Colorado DMV — ELT Information for Lenders |
| Connecticut | No | Lender (paper title) | Connecticut mails the paper title (lien noted) to the lienholder and does not participate in ELT; at payoff you keep the stamped 'paid' title from the lender. | Connecticut DMV — Vehicle Title Service |
| Delaware | No | Lender (paper title) | Delaware mails the paper title to the lienholder; at payoff Form MV35 is used to have the lienholder send the title to the DMV for a clear title. No ELT program is documented. | Delaware DMV — Titling |
| District of Columbia | Generally no | Lender (paper title) | The title showing the lien is mailed to the lienholder; ELT participation is voluntary (Phase I), and at payoff the paper title is released to the owner. | DC DMV — Lienholder Letter (2023) |
| Florida | No | State DMV (electronic) | Florida is an ELT state: while a lien exists the title is held electronically by FLHSMV and the owner receives no paper title unless they request one; the lender releases the lien electronically at payoff. | Florida FLHSMV — Electronic Liens and Titles |
| Georgia | No | State DMV (electronic) | During an active loan Georgia prints no paper title — under mandatory ELT (lienholders with 5+ liens, since Oct 1, 2020) the certificate and lien are held electronically in the DOR's DRIVES system, and a clear paper title issues to the owner only after the lienholder electronically releases the lien. | Georgia DOR — Electronic Lien and Title |
| Hawaii | No | Lender (paper title) | Hawaii titles are issued and held at the county level: the lienholder is the vehicle's 'Legal Owner' and holds the paper Certificate of Title during the loan until payoff, when the lienholder signs the release and delivers the title to the owner. | City & County of Honolulu — Vehicle Title Information |
| Idaho | No | Lender or state (ELT varies) | During an active loan in Idaho the owner does not receive the paper title — a lienholder in the voluntary ELT program has ITD keep the title paperless and holds the lien electronically, and once the lien is released ITD prints and mails the clear title to the owner. | Idaho Transportation Department — Vehicle Titles |
| Illinois | No | State DMV (electronic) | During an active loan Illinois holds the title electronically and deems it physically held by the lienholder; at payoff the Secretary of State prints and mails a paper title. ELT becomes mandatory for lienholders processing 5+ liens a year on July 1, 2026 (smaller lienholders exempt). | Illinois Secretary of State — Electronic Lien & Title |
| Indiana | No | State DMV (electronic) | Indiana's BMV holds the title electronically for the lienholder during an active loan (mandatory ELT); at payoff the lienholder releases the lien electronically and the BMV mails the clear paper title to the owner. | Indiana BMV — Electronic Lien and Titling Overview |
| Iowa | Generally no | Lender or state (ELT varies) | In Iowa the title is held electronically by default once the lienholder is enrolled in ELT (the DOT keeps the record); after payoff the lienholder releases the lien electronically and the owner is mailed the clear paper title. | Iowa DOT — Electronic Lien & Title |
| Kansas | No | State DMV (electronic) | Kansas has been an electronic title-holding state since 2003 — during an active lien the state holds the title electronically and will not print or mail a paper title to the owner; a clear paper title is mailed only after the lien is released. | Kansas DOR, Division of Vehicles — E-Lien FAQ |
| Kentucky | Yes | Owner (paper, lien noted) | Kentucky is an owner-held state — the security interest is perfected by notation on the certificate (KRS 186A.190) and the title with the lien noted is mailed to and kept by the owner during the loan; ELT is available but voluntary today (pending SB 110 would make it mandatory around July 1, 2027 — not yet in effect). | Kentucky Revised Statutes — KRS 186A.190 |
| Louisiana | No | State DMV (electronic) | Under Louisiana's mandatory ELT program (Act 689 of 2008, mandatory Jan 1, 2010) no paper title is issued while a loan is active — the lien/title is held electronically for the lienholder, and a clear paper title is printed and mailed to the owner only after the lien is electronically released. | Louisiana OMV — Electronic Lien & Title |
| Maine | Yes | Owner (paper, lien noted) | Maine is an owner-held state by statute (29-A §657(7)): the certificate of title is mailed to the owner while the lienholder receives only a certificate of lien — unless the lender opts into Maine’s voluntary Electronic Lien Titling program (live Jan 31, 2024), under which the title stays electronic until payoff. | Maine SOS/BMV — 29-A §657(7) |
| Maryland | No | State DMV (electronic) | Maryland is fully electronic (since July 1, 2024): while a lien is active the owner gets no paper title — the MVA holds it electronically and issues a Security Interest Filing to the lienholder; the clear title issues to the owner at payoff. | Maryland MVA — Information for lenders |
| Massachusetts | No | Lender (paper or electronic) | The lienholder holds the title during the loan — electronically if enrolled in ELT, otherwise a paper title mailed to and held by the lienholder — and the owner gets the paper title only after the lien is released. | Mass.gov — Electronic Lien and Title (ELT) Program |
| Michigan | No | State DMV (electronic) | Michigan holds titles with institutional liens electronically (mandatory since Oct 1, 2023), so the owner gets no paper title during the loan; a private/individual lienholder instead triggers a paper title with the lien noted. | Michigan Dept. of State — ELT program |
| Minnesota | Yes | Owner (paper, lien noted) | Minnesota mails the title to the owner and a lien card to the lienholder, so the owner physically holds the title (with the lien noted) throughout the loan. | Minnesota DPS DVS — Security interest (lien) |
| Mississippi | No | State DMV (electronic) | Mississippi uses an electronic E-Lien program: the title is treated as held by the lienholder electronically, and HB1589 (2024) makes electronic lien release mandatory for FEIN lienholders within 14 days. | Mississippi DOR — Motor Vehicle E-Lien Program |
| Missouri | Yes | Owner (paper, lien noted) | Missouri mails a title showing the lien on its face to the owner, so the owner physically holds the title during the loan rather than the lender. | Missouri DOR — Dealers and Lienholders |
| Montana | Yes | Owner (paper, lien noted) | Montana mails the paper title to the owner and sends the lender only a Notice of Security Interest, so the owner holds the title while the lender’s interest is recorded electronically in the MVD database. | Montana MVD — Vehicle Title Information |
| Nebraska | No | State DMV (electronic) | Nebraska issues no paper title while a lien is active (since Nov 1, 2010): the DMV holds the title electronically and gives the owner a title receipt, mailing the clear title after the lien is released. | Nebraska DMV — Electronic Lien and Title |
| Nevada | No | State DMV (electronic) | Nevada is mandatory-ELT (since Jan 1, 2016): a financed vehicle produces no paper title while the lien is active — the DMV holds the electronic title and issues paper to the owner only after the lienholder releases the lien. | Nevada DMV — Electronic Lien Title (ELT) |
| New Hampshire | No | Lender (paper title) | New Hampshire sends the paper title to the lienholder, who holds it until payoff; the owner receives the clear title only after the lien is released (NH does not title vehicles model-year 1999 or older). | New Hampshire DMV — Apply for a Title |
| New Jersey | Generally no | Lender (electronic title) | The lending institution holds the title until payoff; under the NJMVC's April 1, 2025 mandate, lenders handling five or more liens a year must hold it electronically via the state ELT system rather than on paper. | New Jersey MVC — Liens |
| New Mexico | No | Lender (paper title) | New Mexico issues paper titles only; when a lien exists the title goes to the lienholder, who holds it until the loan is released (N.M. Stat. § 66-3-201). | New Mexico MVD — Vehicle Titles |
| New York | Yes | Owner (paper, lien noted) | New York issues the title to the owner with the lienholder's lien recorded on it; the DMV's Electronic Lien Transfer program is voluntary, replacing paper with an electronic record only when the lender opts in. | New York DMV — Add or remove a lienholder |
| North Carolina | No | State DMV (electronic) | North Carolina prints no paper title during a loan; the lien and title are held electronically through the state’s mandatory electronic lien system, and a paper title is mailed to the owner only after the lien is released. | N.C.G.S. § 20-58.4A — Electronic lien system |
| North Dakota | No | Lender (paper or electronic) | In North Dakota the title on a financed vehicle is sent to the lienholder (or held via electronic lien notation), not the owner; a clear title is mailed to the owner after the lienholder releases the lien. | N.D.C.C. § 39-05-17 / NDDOT |
| Ohio | No | Lender or state (ELT varies) | The owner doesn't hold the title during a loan — it's held electronically by a participating lender through the BMV's voluntary ELT program (owner gets a memorandum title) or as a paper title held by a non-ELT lienholder; titles are issued by County Clerk of Courts offices. | Ohio BMV — Lien Release and Title (ORC 4505) |
| Oklahoma | No | Lender (paper or electronic) | Since July 1, 2022 Oklahoma is a title-holding state: the lienholder keeps the certificate of title (paper, or an e-title via an approved vendor) until the loan is paid off, and the owner holds only the registration. | Oklahoma Tax Commission / Service Oklahoma (2022) |
| Oregon | Yes | Owner (paper, lien noted) | Oregon is an owner-held state: the owner receives and holds the paper title with the security interest holder (lender) noted on it, and the lender releases that interest at payoff. | Oregon DMV — Titling and Registering Your Vehicle |
| Pennsylvania | No | State DMV (electronic) | Under PennDOT's mandatory ELT program no paper title is printed during the loan; once the lien is electronically released, PennDOT mails the clear paper title to the owner the next business day. | PennDOT — Mandatory ELT FAQs |
| Rhode Island | No | Lender (paper or electronic) | Rhode Island issues the title to the lienholder during a loan, so the owner does not hold it; ELT is voluntary now but becomes mandatory October 1, 2026 for lenders recording five or more security interests a year. | Rhode Island DMV — Electronic Lien and Title |
| South Carolina | No | State DMV (electronic) | In South Carolina a financed vehicle’s title stays electronic (ELT mandatory for commercial lenders since Jan 2007) — no paper title is printed while the lien is active, and paper is mailed to the owner only after the lender electronically releases the lien. | SCDMV — Electronic Lien and Title |
| South Dakota | No | Lender or state (ELT varies) | South Dakota stores a title electronically whenever a lien is noted — no paper title is printed while a loan is active — and the state prints and mails the paper title to the owner after the lienholder releases the lien. | South Dakota DOR — Motor Vehicle |
| Tennessee | No | Lender (paper or electronic) | In Tennessee the title is delivered to and retained by the first lienholder during the loan (or held electronically under the voluntary ELT program launched June 2026), and the owner receives it after the lien is released. | Tennessee DOR — Lien Notation (TCA § 55-3-114) |
| Texas | No | Lender or state (ELT varies) | During a Texas auto loan the lienholder holds the title — a paper certificate held until payoff, or an electronic title held by TxDMV — and a clear paper title is mailed to the owner once the lien is released. | TxDMV — Lienholders / ELT |
| Utah | Varies | Lender or state (ELT varies) | Utah runs a voluntary e-lien program, so a financed vehicle may have either an electronic title the lender clears automatically at payoff or a paper title the lienholder signs off before the owner obtains a corrected clear title. | Utah DMV — Liens |
| Vermont | No | Lender (paper title) | Vermont records the lien on a paper certificate and sends that title to the lienholder, who holds it until the loan is paid off and the lien is released. | Vermont DMV — Title Liens |
| Virginia | No | State DMV (electronic) | During an active loan Virginia issues no paper title to the owner — the title is held electronically through the DMV’s mandatory Electronic Lien Program — and the DMV mails the clear paper title to the owner after the lienholder electronically releases the lien. | Virginia DMV — Electronic Lien Program |
| Washington | Generally no | Lender or state (ELT varies) | In Washington a lienholder’s interest is recorded electronically and, for lenders enrolled in the optional ELT program, no paper title is issued during the loan; once the lien is released the Department of Licensing mails the clear title to the owner. | Washington DOL — Electronic titles |
| West Virginia | No | State DMV (electronic) | West Virginia holds the title electronically during a loan and issues no paper title to the owner until payoff; under W.Va. Code 17A-4A-2a (eff. July 1, 2025) lenders recording five or more liens a year must use the mandatory ELT system. | W.Va. Code 17A-4A-2a — Electronic transfer of liens |
| Wisconsin | No | Lender (paper or electronic) | For any lien listed on or after July 30, 2012, WisDOT sends the Wisconsin title (paper or electronic) to the lienholder rather than the owner; only after the lender releases the lien does the DMV print and mail a clear title to the owner. | Wisconsin DMV (WisDOT) — Lien holder processing |
| Wyoming | No | Lender (paper title) | Wyoming titles are issued through the county clerk with any lien noted on the face of the paper certificate, which the lienholder holds until the loan is paid off; the clerk then issues a clear title to the owner. | WYDOT — Titles, Plates & Registration |
Amber rows are the 7 owner-held states, where the seller of a financed car physically holds the paper title. All rows verified August 2026 against the linked official source. Electronic lien & title (ELT) mandates are still expanding — confirm with the state DMV for any transaction in progress. Download the dataset (JSON).
Methodology
CarWhere reviewed official titling and electronic-lien guidance published by each state's motor vehicle agency (DMV/MVA/BMV, Secretary of State, Department of Revenue or Transportation, or state statute). For each state and Washington, D.C., the table reports whether a vehicle owner receives a paper certificate of title while a lien is active, and who controls the title record (the owner, the lienholder, or the state via an electronic title). Every row links to one official source and was last verified in August 2026. Rules change as states adopt ELT mandates; spot an outdated entry? Report a correction.
Cite this page: CarWhere Research, “Who Holds the Car Title During a Loan? State-by-State Guide,” updated 2026-08-19, verified against official state DMV sources.
Buying from a private seller?
Use CarWhere to confirm the VIN, factory configuration, open recalls, and current market pricing for the exact vehicle. For title-brand, lien, and ownership-history records, use an NMVTIS-approved history provider and confirm the title directly with the state DMV. Free VIN decode · Full VIN Report
FAQ
Which states let the owner hold the car title during a loan?
Seven states issue the title to the owner (with the lien noted on its face) during an active loan: Kentucky, Maine, Minnesota, Missouri, Montana, New York, Oregon. In every other state the lender holds the title, or the state holds it as an electronic title, until the loan is paid off.
Is Maryland or Michigan a non-title-holding state?
No — not anymore. Both now use electronic titles. Maryland's MVA issues no paper title while a lien is active (a Security Interest Filing goes to the lender; fully electronic since July 1, 2024), and Michigan holds titles with institutional liens electronically (mandatory since October 1, 2023). Older lists that still call them 'owner-held' are outdated.
What is an electronic lien and title (ELT) state?
A state where the DMV keeps the title as an electronic record while a lien is active, so neither the owner nor the lender holds a paper title. The clear paper title is printed and mailed to the owner only after the lender releases the lien electronically. Most states now use ELT for at least some lenders, which is why the old "title-holding vs. non-title-holding" binary no longer describes what actually happens.
Why does it matter when buying a used car?
In an owner-held state a private seller can hand you a paper 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 the lien was released with the state DMV. A VIN check confirms the vehicle’s identity matches the title; 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 confirm with the state DMV that the title is current. For lien and title-brand history, use an NMVTIS-approved provider.