The used vehicle market in the United States remains fertile, and financing person-to-person vehicle transactions represents an opportunity for lenders of all sizes.
As with all asset-backed lending, it’s essential for lending institutions to protect their investments in financed motor vehicles by perfecting their interests. That means conducting the necessary due diligence and making the appropriate title filings in relevant jurisdictions to properly establish a security interest in those assets.
But many companies are not prepared to address the unique demands and complexities that can come with motor vehicle title processing. These can include the need to deal with motor vehicle departments (DMV) in many jurisdictions and to make sense of a broad range of varying rules and requirements.
As it stands, the processes and protocols within many lending institutions have not been optimized to mitigate risk and ensure valuable protections for financial investments in the motor vehicle space. As a leading provider of lien services, Lien Solutions has developed decades of expertise that can inform best practices for sound lending. We share some of them here.
Read our white paper on Title Processing in person-to-Person Motor Vehicle Transactions.