The POA is helpful when paperwork is not completed or incorrectly completed. If we have a POA we can fixed the paperwork without inconveniencing the customer. This also helps if theres two parties on the loan and one them are not be corporative. Which causes the title work to be held up. With the POA we can sign off for the customer and have it completed…..

The POA will allow the lender to title the vehicle and execute all other documents necessary for transferring the loan from your current lender to themselves. It is actually saving you the trouble of personally signing all the documents.

It would also need this in the event that you default on the loan. Holding the lien is not enough - that only means they are owed money on the car.

This is a very common practice and should not worry you, assuming you have read the POA and it is limited in scope (to matters relating to the vehicle in question).

I think it is to make the title transfer process easier. Usually it is a temporary POA.