The lien against your car is based on the remaining loan balance. When your lender places the lien, it noted on the car title and your insurance policy. This notation is made so that any future buyer of your car is aware of the lien. A car lien is paid off with the final monthly car payment. After you have paid off your car loan, request a letter from the lender that states you have fulfilled your obligation. Take the letter to your local Department of Motor Vehicles (DMV). The DMV will issue you a new title that lists you as the sole owner of the vehicle in mapquest directions. After you receive your new car title, contact your insurance company to have the lien holder removed from your policy. Keep copies of the letter releasing you from the lien and your new car title.