What Is a Vehicle Title and Why Does It Matter?

A certificate of title is given to you when you buy an automobile outright, without requiring bank or dealer financing. The title is proof that you own the car. It also has information about the car's make, model, and VIN number.

A title is required when registering or selling a vehicle. When looking for an automobile, knowing the different types of titles is crucial.

What Is a Car Title, Exactly?

A car title identifies the owner of the vehicle. You won't be able to prove you own the car legally without it. When a car is sold, the state's department of motor vehicles (DMV) or department of transportation issues it. If you take out a loan, the lender will keep the title until you repay the loan.

With some state-by-state variation, most titles include the following information:

• The proprietor's name
• Vehicle identification number (VIN)

At the time of sale, the odometer reading

• Weight class
• Lienholder information if the transaction is financed
• Names, addresses, sale date, and signatures of the buyer and seller in the title assignment section

Types of Automobile Titles

When looking for an automobile, you may notice that the title is clean or clear. That means there has been no major damage, repairs, or recalls on the vehicle. It doesn't mean the car was never in an accident; it simply means it wasn't totaled and the previous owners' records are pristine.

A branded Auto Title Services Houston may be present if the vehicle was involved in an accident and deemed a total loss, or if it has flood damage or an erroneous odometer. Cars with branded titles are sometimes less expensive than those with clean titles, but you run the chance of purchasing one with issues.

You can use VINCheck or a paid service like Carfax to find out what type of title an automobile has.

Registration vs. Title

You must also register your vehicle after receiving a title. While a title proves ownership, a registration certificate proves that your vehicle is legal to drive on public roads. If you are caught driving without a current registration, you may be punished.

How to Acquire a Title

Apply for a certificate of title in your name when you buy a new vehicle or transfer a vehicle to another state. This will necessitate a trip to your local DMV with the required documents.

• Photo identification, such as a driver's license or passport
• A bill of sale or other form of ownership documentation
• Proof of the state's minimum insurance coverage

Request for a title

• If applicable, sales, tag, title, and registration fees

State-by-state, title fees range from $5 to $150. For instance,

Individuals in Illinois must pay a $155 automobile title fee.

• North Dakota: In North Dakota, the title charge is only $5.2.
• Pennsylvania: Obtaining an original title in Pennsylvania costs $58.3.

Keeping Your Name

Keep an eye on your title. Keep it somewhere safe and secure.Keep it separate from your proof of insurance and registration. It should be kept in the same folder as crucial documents, including birth certificates, Social Security cards, and passports.

Some states employ electronic papers instead of paper titles. You won't have to worry about keeping the title safe if your state allows electronic titles, because they will save it for you. Visit your state's DMV or Dealertrack to see if your state offers electronic titles.

Don't be alarmed if you lose your title. For a cost, your DMV may be able to provide you with a duplicate title. You can even request one online or by mail in some situations.

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