When drivers make that wonderful final payment on a car loan, that milestone is celebrated when they get the title in the mail.
But it’s not always a seamless process and a glitch can mean problems and multiple visits to a New Jersey Motor Vehicle Commission center to straighten it out.
A new program announced Thursday makes most of that process between the bank, the MVC and vehicle owner take place online, reducing the chance of problems and fraud, commission officials said.
It also sets the stage for allowing titling and registration of privately sold used vehicles to be done online in the future instead of in-person, officials said.
Why go digital?
The new Electronic Lien and Title (ELT) system allows institutions financing vehicles in the state to exchange lien and title information electronically with the motor vehicle commission and eliminate the need for manual processing and maintenance of paper titles.
“ELT now allows the lien to be released electronically without the lending institution or customer needing to resolve the lien status via mailed paperwork, manual transit, or an in-person visit,” said William Connolly, a spokesperson.
Once a driver pays off their vehicle and the lien holder release the lien, a new paper title will be automatically printed and mailed by the commission to the titled owner of the vehicle, he said.
That title also can be mailed to a specified third party by the owner, if the vehicle is being used for a trade-in, he said.
How does it work?
For drivers who’ve paid off their vehicle, the system streamlines the process of getting them a title that shows there is no longer a lien. It was started as a pilot program in January.
The system also reduces possibilities of fraud by handling lien transactions between financial institutions and the MVC in a secure, digital manner that reduces the handling, printing, storage, and mailing costs associated with paper titles, officials said.
Lenders can use the system to confirm lien transactions, make any corrections, or release liens at the conclusion of loan. This speeds up the lien release process, making it easier for customers and retailers to obtain a lien-free title, officials said.
“We’re excited to announce the availability of ELT in New Jersey,” Latrecia Littles-Floyd, the commission’s acting chief administrator, said in a statement. “The system has huge advantages when it comes to processing liens and titles. It’s a win all around and a big step forward in our continued efforts to modernize and improve the Commission.”
Skip the trip to title used cars?
It also sets the stage for future plans to change registering and titling a vehicle purchased from a private owner from an in-person transaction at an agency to a digital one
“The new ELT system will serve as a base platform for the future digitization of the NJMVC’s titling and registration systems,” Connolly said. “Registering and transferring the title of a vehicle purchased during a private sale are currently transactions that must be completed at an agency appointment.”
That answers a major issue and criticism made during the pandemic when motor vehicle agencies were closed and afterward when appointments were in short supply. Drivers who bought used cars from a private seller had difficulty registering and titling them quickly so they could drive them.
The motor vehicle commission’s centers reopened in July 2020 after being closed during the height of coronavirus pandemic to long lines and the MVC transitioned to an appointment system to catch up on a backlog of transactions.
It wasn’t until October 2020 that appointments could be made to register and title privately-purchased used vehicles. Drivers who need to title and register used vehicles said they encountered difficulties registering and titling them in a reasonable period of time, especially if it replaced a non-working vehicle
New car dealers usually handle the titling process and get people on the road immediately by issuing temporary tags. Some used car dealers also issue temporary tags.
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Larry Higgs may be reached at lhiggs@njadvancemedia.com. Follow him on X @CommutingLarry
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