An automobile you purchase will be among your most expensive assets. Because of this, we all treat them with respect and we treat them like family. The only restriction is that you are unable to bring them into your bed with you when you sleep.
Even if you don’t use your car when you go out, it becomes an integral part of your daily life the moment it is brought to you. Even if you won’t be driving it when you leave home, you still need to have a location to store it and make sure it is secure.
But even though the car you recently purchased is in your hands, are you certain that it is already yours? You should use caution, especially if you want to finance the purchase, either internally or through a bank.
You can easily get your brand-new car right away after making the required down payment and giving them the required advance check payments after overcoming the arduous submission of all the essential paperwork and requirements needed by the bank or the in-house finance.
Do you believe you already own that car? Even if your name is put on the official receipt and the automobile’s certificate of registration, the car won’t be entirely yours until you have made 3 or 5 years’ worth of on-time monthly payments. It’s because the OR and CR clearly display the ENCUMBERED writing. In other words, it is covered by the financing plan and is fully owned by the financing company or the bank that provided financing for your car.
You are at the whim of the bank or internal finance since they have the authority to seize or reclaim your car if and when you are unable to make the required monthly payment on time or at all.
Even if you were able to easily pay off the entire financing plan after three to five years, you would still need to ask the bank or financing house for a certification that you have finished paying for the vehicle. You would also require the original OR and CR that the car dealership where you purchased the vehicle had entrusted to them.
You can obtain your original OR and CR within a week or a month after finishing your last monthly payment if the bank or the in-house finance won’t give you any trouble asking for them. You should be aware that certain banks may cause you problems for several months if they discover that you have an unpaid balance on one of their credit cards or other financing options.
Even though you already have the original OR and CR and can see your whole name inscribed on the automobile, it is not yet yours.
To have the ENCUMBRANCE revoked, you must first visit the Register of Deeds where it was registered by the bank or internal finance. The processing of the aforementioned release takes a few days.
After that, you proceed directly to the Land Transportation Office (LTO), where it is registered, to have the ENCUMBERED letterings removed and to generate a new CR. You must spend the entire day waiting for this procedure at the stifling LTO office.
You may only be certain that the car is actually yours after obtaining your clean OR and CR in your name. Congratulations!