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A car title is an important document associated with each and every properly registered vehicle. But what exactly is a car title? What information is on a car title? This article will answer all of those questions and more.
What Is a Car Title?
A car title is a document that serves as proof of ownership of a specific vehicle. Whoever’s name is on the title is the legal owner of that vehicle. This document also serves to store important information about the car’s history, such as whether it has been previously damaged, recalled, etc.
What Information Does a Car Title Contain?
Car titles vary from state to state but generally contain much of the same information.
The most important section on the title is the assignment section. This section details changes to who is the legal owner of the vehicle, which is crucial to report when attempting to buy or sell the vehicle. Whenever the vehicle changes ownership, this section must be filled out and submitted to the regulatory body (such as the Department of Motor Vehicles (DMV)) that has jurisdiction over the purchaser’s home location.
There is another section on the title that lists the vehicle’s make, model, and manufacturing year. This information is listed in order to help identify the vehicle as the correct vehicle referenced on the title.
Another important section of a car’s title is the section containing information about any registered lienholders. This section will detail who, if anybody, is currently financing the vehicle. Any loans taken out to purchase the vehicle from a dealership, for example, will be shown here alongside the creditor’s information.
The vehicle’s current odometer reading is also typically required to be placed on the vehicle’s title when looking to transfer ownership thereof. The odometer reading at the time of sale is not always listed on the title, but several states require it.
The vehicle’s registered owner will also be listed on the title, showing who is currently the legal owner of the vehicle.
Lastly, car titles will also include the vehicle’s identification number (VIN), a 17-digit alphanumeric code given to the vehicle by its manufacturer. Most states require that this be included on the title because of how helpful the VIN can be. With it, you can find information on the vehicle’s country of origin, model year and type, what kind of airbags it comes equipped with, and so much more.
Title Vs. Registration
A vehicle’s title and registration are both important legal documents; however, they are not the same. They have entirely different purposes and legal functions. For example, while a title serves as proof of ownership and provides information pertaining to the vehicle’s history, a registration only shows that you’ve registered the vehicle with the state’s transportation agency (like the DMV) and paid the necessary fees.
A registration only shows who is the vehicle’s registered owner, which is not necessarily the legal owner listed on the vehicle’s title. While these two are commonly the same person, it’s possible for them to be two different individuals in the brief period of time after purchasing a vehicle before you have had a chance to change the registration.
Types of Car Titles
Generally speaking, there are five different types of car titles: clean, flood, Lemon Law, rebuilt/reconstructed, and salvage. Each of these titles contains different information and should be treated differently. For example, if you are attempting to purchase a car being marketed as “brand new” but you see that it has a salvage title, you might be able to tell that you’re being scammed.
Clean Title
A clean title is for a vehicle that has never suffered any significant damage. Clean titles show that the vehicle has been in no accidents, suffered no major environmental damage, and has the majority of its original parts. When you’re looking to purchase a new or used vehicle, a clean title is what you want to see.
Flood Title
A flood title is for a vehicle that has sustained significant water damage due to a flood at least one time in its history. To qualify for a flood title, the vehicle must specifically have been sitting in flood waters that were high enough to fill the car’s engine compartment. Vehicles that have been through such adverse weather conditions typically have higher maintenance costs and do not last as long as vehicles that haven’t.
Lemon Law Title
Some states have what are referred to as “Lemon Laws.” Lemon Laws are laws that state that dealerships must give you a full or partial refund (depending on the state) if the vehicle you purchased from them must be returned due to serious and severe defects.
Any vehicle that has been returned to a seller under a state’s Lemon Law will have that exchange marked on its title.
Rebuilt/Reconstructed Title
Rebuilt/Reconstructed titles apply to vehicles that were once salvage vehicles but now have been successfully rebuilt or reconstructed to meet the state’s transportation requirements. If the DMV would now consider the formerly salvaged vehicle to be a road-worthy vehicle, it will be given a rebuilt/reconstructed title.
Salvage Title
Salvage titles are reserved for vehicles that an insurance company once declared a total loss due to accident damage or other problems. If you’ve ever totalled your vehicle, odds are it was either thrown out and recycled or repaired and given a salvage title.
If you are looking to purchase a used car with minimal problems and no real need for maintenance checkups, do not buy a vehicle with a salvage title. These vehicles are typically much more high maintenance than vehicles with clean titles. However, they are also typically much, much cheaper.
