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Car Title Guide: Everything You Need to Know

Car title example from Florida

Quick Facts About Car Titles

  • Car titles show information about the vehicle, including the make and model, VIN, odometer reading, date of sale, the owner’s name and address, and the lienholder if the car is being financed.
  • You can replace a lost title by visiting your local DMV, providing the necessary information, and paying a reissuing fee.
  • Transferring the car title is required even when no money changes hands or if the new owner is a family member.

The car title is a document required to buy or sell a vehicle, and it’s the most important document attached to your car. As it establishes car ownership, you will need a car title to buy or sell a vehicle. Vehicle sellers can go to their state’s motor vehicle agency website for details on selling a car.

Basically, the title is like a vehicle’s birth certificate, Social Security number, and passport rolled into one document. Use our quick links below to skip ahead in the article.

What Is a Car Title?

A car title is a legal document establishing proof of ownership of a vehicle. Issued by the state where the car, truck, or SUV was purchased, the title accompanies the vehicle throughout its life.

It’s reissued with each new owner and any new state of residence.

What Does a Car Title Look Like?

Title for a car from Pennsylvania

Looking every bit like a car’s birth certificate, the title will include the seal of the issuing state. Although the information displayed on a title varies by state, generally, every title includes certain facts like the following:

  1. Identifying information: Vehicle identification number (VIN), make, model, year, and color
  2. Owner’s name and address
  3. Title issue date: The date the vehicle was purchased
  4. Odometer: Reading and when it took place
  5. Outstanding liens: Usually, the financing lender
  6. Signatures: Buyer, seller, and representative of the state

A seller scamming the system isn’t unheard of. But, it’s up to you to ensure the title the seller presents is indeed a legal title. There are some things you can look for and do to avoid being duped.

  • Double-check the title’s issuing state. If it’s not the state you are in, it’s likely not a valid title.
  • Verify the vehicle identification number (VIN) by obtaining a vehicle history report from an online provider like AutoCheck. It will cost $25 for a one-time report, but it’s well worth it. Reports provide detailed information, including past car owners, accident history, and maintenance records.
  • Inspect the title’s issue date. If it’s relatively recent, it could be forged.
  • Check for a watermark. The absence of a watermark is a sign the title is a copy.
  • Look for fuzzy or unclear printing in the document. These are indications the document is a copy.

Buying a New Car: What Happens to the Title?

In terms of a title, buying a new car is a no-brainer. The dealer takes care of all things title-related. You will pay any fees involved, but the dealer deals with the paperwork.

When you buy a car, you pay cash, lease, or finance. Only when you pay cash will you receive the original title. Also, processing it might take as long as 30 days. Leasing a car is glorified renting. You never receive the actual title because the car never belongs to you.

When you finance a vehicle, you will receive a copy of the title within 90 days. It will identify the lender as a lienholder. When you’ve paid the loan in full, you will receive the actual title reflecting you as the owner free and clear.

Selling or Trading a Car: What Do You Need to Know?

You don’t need to do anything when selling a car to a dealership or trading it in as part of the transaction for acquiring another vehicle. Whether you own a clear title or your title has a lienholder, the dealership will handle any title issues.

Selling your car to another private individual, however, requires some effort from you. If you’ve satisfied the vehicle loan and have a free-and-clear title, you only need to fill in the transfer information. This includes you and the buyer signing in the appropriate places. Both parties should keep a copy.

NOTE: Some states require notarized signatures. You will also need a bill of sale as part of this transaction. You and the buyer should keep copies with the signatures of both parties. Unless you know the buyer, accept only cash or a cashier’s check as payment.

If you still owe money on the vehicle and a lien is on the title, things get more complicated. The lender will want the loan paid off to release the lien. At this point, the easiest way forward is to complete the entire transaction at the lender’s offices. If it’s a local bank or credit union, everything can be done right then and there. You will need to make arrangements with your lender.

If completing the transfer at the lender’s location isn’t possible, the lender will still want the loan paid in full before transferring the vehicle. You will have to hammer this out with the buyer. The best way forward, in this case, is for the buyer to pay your lender. The lender will issue you a clear title, and you can proceed with the transfer.

Lost Car Title: What Are the Options?

Don’t panic if your title turns up missing. There will be a fee, but you can replace it. You can apply for the replacement online, but we recommend going to your local Department of Motor Vehicles (DMV) branch. In-person is better. First, go to your state’s DMV website to see exactly what information and documents you need to take.

What You Need to Get a New Car Title

When you’re ready to get a new vehicle title, use our checklist below of typical things to bring. Every state and government agency is different, so check before you go.

  1. Make, model, and year of the vehicle
  2. Current odometer reading
  3. The VIN
  4. Financing information
  5. Your driver’s license
  6. Cash, debit card, or check for the reissuing fee

How Do You Get a Copy of the Car Title?

To obtain a copy of your car title, take your vehicle’s VIN, any financing documentation, current odometer reading, driver’s license, and payment for the reissuing fee to your local DMV and apply for a replacement title.

How to Replace a Lost Car Title

To replace a lost title, check out this resource from Finance and Insurance Tools. It provides the links to state applications for replacement titles plus the cost. According to the F&I Tools, the cost will range from $2 to $95, depending on the state where you live.

RELATED ARTICLES: How to Sell a Car Without a Title

How to Transfer a Car Title

Every state has its own rules concerning car titles. In the long run, your life will probably be much easier to keep up with changes as they happen. That means getting an updated title when relocating to a new state or when the vehicle changes hands. That’s true even when the vehicle moves from one family member to another.

How to Transfer a Car Title to a New State

As if you don’t have enough on your plate when moving to a new state, add registering and retitling your car to the mix. States have their own timetables for making your car legal in its new home, but 30 days is a good place to start.

Some states require an emissions test, a safety inspection, or both to title and register an out-of-state vehicle. Many require a physical vehicle identification number verification, as well. It’s up to you to determine what is necessary for your new home.

If you come from a state that issues titles, take your current title to the local DMV or Department of Transportation office. Additionally, you’ll need your driver’s license, the current odometer reading, proof of residence (electric bill, apartment lease, and so forth), and a form of payment. If your new state requires any of the tests mentioned above, you’ll need proof of passing those.

Some states, such as Vermont, don’t require titles for cars more than 15 years old. If you are coming from a state that doesn’t issue titles, you will need your current registration, financing paperwork, and all the other documentation listed in the last paragraph.

RELATED: Buying a Car From Out of State

How to Transfer a Car Title to a Family Member

Although it makes sense that transferring a title to a family member would somehow be easier, the process is the same as with an outside buyer. This is so whether the title is clear or if there is a lienholder.

If it’s clear, fill out the required information on the current title and sign where appropriate. If the state requires a bill of sale, it must be completed, even in the case of a gift. The family member then applies for a new title.

If there is a lien, the lender will require payment before clearing the lien.

How to Transfer a Car Title with Two Owners

The title transfer process is the same with two owners as with one. That is, with one possible exception. It’s the difference between “or” and “and.”

If “or” separates the two owners’ names, either owner can legally sign the title transfer. If “and” separates the two names, you will need the signatures of both owners for the title transfer.

What Are the Types of Car Titles?

There are at least 18 types of car titles. As a private-party car owner, you’ll never come in contact with most of them.

  • Affidavit is a provisional title issued by the state when some documentation is missing.
  • Bonded is an expensive means of establishing ownership when no clear ownership exists. It involves putting up a cash bond in the amount equal to the vehicle’s estimated value. The title is issued, but the bond will pay off an aggrieved party if an ownership dispute arises.
  • Certificate of Destruction is the title issued for a vehicle an insurance company will destroy once a claim is settled.
  • Certificate of Origin is the original ownership document transferring a vehicle from the manufacturer to the dealer.
  • Clear identifies the title as having no liens.
  • Electronic titles are issued in some states as a path to a physical title.
  • Export is a title for getting customs clearance in another country.
  • Flood and Water Damage is exactly what it sounds like. It’s the title designation for a severely water-damaged car.
  • Import is the designation for the first title issued by the United States for a vehicle not manufactured or sold in the U.S.
  • Junk is the designation of a title issued for a vehicle to be scrapped or sold for parts.
  • Lemon is the title designation for a vehicle with a mechanical problem that can’t be fixed.
  • Lienholder is the actual owner of the vehicle until paid for in full. It’s also the name of the title the borrower holds: lienholder title.
  • Manufacturer’s Statement of Origin serves the same function as the Certificate of Origin.
  • Odometer Rollback applies to a title when someone has tampered with the odometer, preventing an exact mileage count.
  • Parts Only is a title when a vehicle will only be used for parts.
  • Rebuilt and Reconstructed are similar. Rebuilt is the title brand for vehicles that have been rebuilt for road use. Collision centers, body shops, insurance companies, and licensed rebuilders can have a vehicle retitled as Rebuilt.
  • Salvage is used by insurance companies when they total out a vehicle. A salvage title is rarely changed but does allow the owner to continue driving the vehicle.

What Is the Difference Between a Car Title and a Car Registration?

The difference between a car title and a car registration is that a title proves ownership, while a car’s registration allows a vehicle to be legally driven.

Unless either is lost, you only need to update them under certain circumstances. You must update your registration if you change addresses in or out of state. On the other hand, you will only need to update your vehicle’s title if ownership is being transferred.

Luckily, you can obtain both documents from your state’s DMV or agency that handles titling.

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