There is only one thing that proves that you own your vehicle and it is not your good word or the fact that you have the keys. Your car title is the document that shows you are indeed the owner. That is why it is paramount to take good care and keep track of it at all times. Losing a car title can lead to some serious headaches. Getting a car title replaced can be a nightmare. You should keep the title somewhere safe with other valuable items in your home. If you do have a safe, that may be the best place to keep it.
How You Get a Title
When you purchase a car, new or used, you will receive a title that shows that you now own the vehicle. If you buy the car brand new from a dealer, you will pay a title fee and your state will send you the document within a few weeks of your purchase. When you buy a used vehicle from another owner, you and the owner must complete a transfer of title, requiring you to process a new title through your state. The state will process your request, and you will receive a new title with your name on it proving ownership.
When You Need Your Title
If you ever sell your vehicle, you will need the title. If you trade it for a new car at a dealer, you will give the dealer the title to the old vehicle, and you will receive a title to the new one. When you sell to an individual, you will have to transfer the title to the new owner. Again, you must complete this process through a state’s department of motor vehicles. You may also need to transfer a title when you get married or divorced.
Using a Car Title for a Loan
In times of emergency, you may wish to use your vehicle as collateral for a loan. In this case, you must produce the title to show that you own the vehicle. The lender will place a lien on the title until you repay the loan. Once paid off, you would receive a new title minus the lien. Embassy Loans has helped tens of thousands of borrowers with car title loans. They are usually for small amounts of money which you can repay very quickly. Car title loans can help get you through a difficult financial time.