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As Jim stated, even if you have an original title (with lien holder) and have paid off the loan, you still need a lien release statement from the finance company in order to sell or junk your vehicles. That can create transaction delays not only if you've lost the lien release; but, even if you have it. The State issued title certificates often have some anti-tampering/counterfeiting devices while the bank issued lien releases are typically just letters that do not. The lien release statement provides convenient information; however, it is easily forged. Buyers may not proceed with a vehicle transfer until the info can be verified with your former finance company. While we're in this period of financial instability with lending institutions merging and collapsing, those records can get lost in the shuffle creating significant delays. That's why I sent my title (with lien holder) and lien release statement in to the State for a corrected title (without the lien holder listed) immediately after the loan was paid off even though it's not required that I ever do so. Now, just the title in my possession is all I need to show that my vehicle is free of encumbrance for immediate transfer of ownership. You may want to do the same with all of your vehicles.
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