The seller provides the buyer with a certificate of title for the pre-owned car, without involving a bank or dealership. This document serves as evidence of the transfer of ownership of the vehicle, containing important details such as make, model, and VIN (Vehicle Identification Number). A valid car title is required for online car registration and transfer. Having an approved title can streamline the process of selling a car and facilitate easy transfer of ownership from one individual to another.

Understanding Car Titles

A car title indicates the rightful owner of a vehicle. Car owners are not legally recognized without this document. Titles are issued by the DMV (Department of Motor Vehicles) or Department of Transportation when a vehicle is sold. The DMV is a government agency present in the United States, Canada, and Australia. In the case of a loan, the lender holds the title. Information found on a car title includes:

  • Owner’s name
  • VIN (Vehicle Identification Number)
  • Odometer reading at the time of sale
  • Weight class
  • Lienholder details for insurance purposes

The document also includes signatures of both the buyer and seller, along with their addresses, sale date, and signatures.

Types of Car Titles

There are different types of car titles that indicate varying status of a vehicle, including:

Clean Title

A clean title signifies that the vehicle has not been severely damaged, stolen, or declared a total loss that exceeds insurance coverage.

Salvage Title

A salvage title indicates that the car has sustained significant damage and has been deemed a total loss by an insurance company.

Rebuilt Title

A rebuilt title is given to a vehicle that was salvaged but has been reconstructed or restored to a roadworthy condition.

Lienholder Title

If the car is financed or leased, the lender retains the title until the loan is fully paid off by the owner.