At Astara, we offer you the opportunity to obtain the financing you need to purchase your car.
Currently, vehicle sales transactions number in the tens of thousands every month. But that doesn't mean they're always simple. There are many concepts we must keep in mind, some of which are quite unfamiliar to many drivers. One of them is the car ownership reserve .
Car ownership reserve: what it means
In case you don't know exactly what a car lien is , it's a term that is used in many vehicle purchase and sale transactions, as well as in vehicle financing.
Retention of title on a car is a legal action that protects the seller in the commercial transaction by allowing them to retain ownership of the item they are selling (in this case, a vehicle) until the full amount is paid.
Obviously, the retention of title does not apply in practice to low-value products that are paid for immediately. However, in the case of a car, financing is generally requested to be able to comfortably pay the full amount.
Therefore, if we finance a car, the seller doesn't actually transfer full ownership of the product to us until we've paid for it in full. What we actually have as buyers is possession and use of the car , but not ownership or control of it.
Furthermore, it is important to keep in mind that, once the entire financed amount has been paid, it is advisable to request the removal of the reservation of title , so that in future commercial transactions with that vehicle we do not encounter obstacles when selling or deregistering it.
Can I cancel the car ownership reservation?
At Astara, we don't just help and advise you on the purchase and financing of the car you want. We're also there for you after the transaction.
That's why we make it easy for you to complete all the necessary procedures for any vehicle-related matter, including canceling the car ownership reservation , so that this doesn't cause you any inconvenience in the future.
However, it's a service that any driver can request, although if you don't have experience with these procedures or much free time, we suggest hiring professional experts so everything is done quickly and appropriately.
To cancel a car ownership reservation, the first thing you need is the financing contract , that is, the document we signed with our bank or financial institution.
If many years have passed since you signed the contract, you may not have it with you. In that case, you should go to a Traffic Department and request some digits. This will help us locate the entity and, if necessary, complete the entire process of requesting the necessary documentation.
Once you've located the entity, you'll need to go to the provincial Movable Property Registry where the car was originally registered and request what's known as a "simple vehicle note."
Do you need to go in person to the Provincial Registry of Movable Property? Actually, it's not mandatory, as long as you have an electronic ID. With it, you can complete the entire process online from the website provided by the institution.
The next step is to request an original payment receipt from the bank that originally granted us the financing. To do this, we'll need to attach our ID information and the simple note .
In about a week and a half, the entity should send us a domain cancellation letter. Please note that this procedure has a variable cost, ranging from €10 to €80.
Once you receive the car ownership reservation cancellation letter , you have two options to complete the process.
The first of these is to go to the Registry and submit all the documentation:
- Original payment letter.
- Printed form for cancellation of the car's ownership reservation.
- DNI.
- Car papers.
- Payment of the corresponding fees.
Once everything is properly submitted, the Registry will proceed to update the vehicle's encumbrance status, which in this case involves canceling the lien. This process will take time depending on the institution's workload, but is usually completed within a few weeks.
The second option is to send all the required documentation by mail, although it's recommended to do so using a courier service so we can track the shipment.
In addition to this documentation, we will need to provide the following:
- Personal data.
- Signature.
- Shipping date.
- Photocopy of ID.
- Authorization of the person who will present these documents (if applicable).
To complete the process of canceling the car's ownership reservation , Astara recommends that you contact the Traffic Department to confirm that the vehicle's status has been correctly updated and to ensure that no issues have arisen.
Can you sell a car with a lien?
Now that you know what a car lien is, you might be wondering, "Can you sell a car with a lien?" This could save you the entire process.
Unfortunately, this is not possible. If the lien is valid, the vehicle's ownership cannot be changed , and therefore, the commercial transaction cannot be carried out.
For this reason, we also recommend that all users do not make any payments or enter into any contracts for the purchase of a car without first reviewing the vehicle's encumbrances and retention of title.
If you're the seller, you must first settle the debt with the financial institution. After that, they will release the reserve and you will receive the title deed in your name. From that moment on, you'll need the document certifying the release of the reserve of title and the effective transfer of ownership to complete the commercial transaction without any problems with the reserve.
How to know the financial situation of a vehicle?
You can request a DGT report or go to the Movable Property Registry where the car was registered and request this information.
If the vehicle has a lien, has been seized, or any other similar situation affecting the car, the information you receive will be detailed.
At Astara, we want to make your mobility options as easy as possible , including the terms and conditions associated with car financing.