Who holds the title when I finance a car?

When you finance, the lender is usually listed as the lienholder and, in many states, holds the title or an electronic title record until the loan is paid off. You are still the registered owner and can drive, insure and register the vehicle. Once you pay off the loan, the lender releases the lien and you receive a clear title or lien release. Timing and process vary by state, so check with your lender and state DMV.