Everything You Need to Know About Your Vehicle Title, Lien, and Registration

Owning a vehicle involves more than filling up the tank and paying your car loan—it's about making sure your paperwork is in order, too. Whether you just bought your first car or refinanced your current one, understanding how your title, registration, and lien work can save you time and potential headaches.

Title vs. registration: What's the difference?

Your vehicle title is the big one—it proves you legally own your car. Think of it as the car's official birth certificate—it lists the owner's name, the vehicle identification number (VIN), and any lienholders (like your lender).

Your vehicle registration, on the other hand, is your authorization from the state to operate your vehicle on public roads. When you register your car with your state's motor vehicle agency (MVA, DMV, BMV, RMV, or DOT —different states use different names), you'll receive license plates and/or a sticker to display on your vehicle.

Most states require you to keep your registration inside your vehicle—just like your insurance information.

The role of the lienholder

When you finance your vehicle through us, Tower is recorded as a lienholder because your car serves as collateral for the loan. In other words, we have a legal interest in the vehicle until your loan is paid off.

• In most states, the lien is stored electronically while your loan is active.
• If you're in an "owner-retained" state, the title stays with you, but it must still list Tower as the lienholder.

Once your loan is paid off, the lien is released and you'll receive a clear title.

Submitting your title to Tower

As part of your loan agreement, we need to receive your title within 90 days of opening your loan.

• For refinanced vehicles, your previous lender will send the title directly to us.
• For private purchases or lease buyouts, your name must appear as the owner, and Tower Federal Credit Union as the lienholder.

If you live in an owner-retained state, send a copy of the perfected title (showing Tower as lienholder) to:

Tower Federal Credit Union
7901 Sandy Spring Road
Mail Stop 240
Laurel, MD 20707
 

What happens if we don't receive it?

We'll send you reminders if your title hasn't arrived. But if it's still missing after 90 days, your loan's interest rate may be increased to 18% APR until the title is received and verified. As soon as we get the corrected title, your original rate is restored.

How you'll know everything's set

Once we have your title showing Tower as the lienholder, you'll receive a letter confirming that everything's complete.

If the title comes through without our lien listed, don't worry—we'll send you the necessary forms to fix it. Just follow the instructions and return the completed paperwork to the address above.

Details that need to be on the title

Before sending your title, make sure:

• Your name and current address appear correctly.
• Tower Federal Credit Union is listed as lienholder.
• The VIN matches the one on your loan documents.

And one important tip: don't write on your title, as that can void it.

Moving to another state

Planning a move? Great—but definitely let us know before you transfer your registration. Each state has its own title transfer process, so email us at [email protected] and we'll walk you through what's needed.

Once you get your state change form, send it to the same email. We can help coordinate the lien update, though you'll need to complete the actual title transfer through your new DMV.

Adding or removing someone from your title

Want to add someone else to your title? That person must also be a borrower on your auto loan—otherwise, you'll need to refinance.

If you're removing someone, we'll send you the necessary permission letter so the DMV can process the change. Once done, the DMV will forward the updated title to us.

Keep your contact info up to date so nothing slows things down.

After your loan is paid off

Congratulations! Once the loan balance hits zero, we'll release the lien after the ninth business day.

• Paper titles: The lien-free title will be mailed to your address on file.
• Electronic titles: We'll notify your state's DMV electronically, and they'll send you the lien free title based on their timeline.

If you need your title faster, request express shipping at your own cost by calling 1-800-787-8328 ext. 3050 or emailing [email protected].

Lien releases, lost titles, and specialty vehicles

Once a lien is released, you can give that documentation to your DMV to get your clear title.

If your title ever gets lost in the mail, contact us right away for a duplicate lien release. For boats, ATVs, or other specialty vehicles, we'll hold the appropriate ownership documents on file instead.

A few final notes 

• We don't accept branded titles (salvaged, rebuilt, or lemon).
• We can't list business names on titles because we don't do business auto loans.

If you ever have questions, our title specialists are happy to help at [email protected]. For state-specific instructions, always check with your local DMV.