When a customer purchases a vehicle and pays for it in full — no financing, no lien — the customer has the right to receive the title. Your obligation is to process the title transfer promptly. If a customer demands their title and you haven’t processed the transfer paperwork yet, you need to expedite it. Holding a title without a legitimate reason is a violation of your dealer obligations.
If the vehicle was financed and the customer has subsequently paid off the loan, the lienholder is responsible for releasing the lien. Once the lien is released, the customer should receive their title. If a customer contacts you because they’ve paid off their loan but haven’t received their title, direct them to the lienholder or assist them in navigating the ELT lien release process.
The situation becomes complicated when there’s a problem with the title — it was lost, there’s an error, or the transfer hasn’t been processed. In these cases, communicate transparently with the customer. Explain the situation, tell them what steps you’re taking to resolve it, and provide a realistic timeline. A customer who understands the problem and knows you’re working on it is much less likely to file a complaint than a customer who is left in the dark.