Other than a home or some very expensive jewelry, the most expensive items that you will own in your lifetime will be vehicles. When you purchase a car or truck, you receive a document issued by your state of residence that establishes ownership of the vehicle. This is the title. Your car title is a very important document. It proves that you, indeed, are the owner. Here is what you should know about your car title.
Titles are a record of ownership. Your state issues you a title when you purchase a vehicle. The title includes the owner’s name(s), address, and other pertinent information about the vehicle. It will contain the make, model, and date of purchase. If you took out a loan to pay for the vehicle, a lien is placed on it. The lienholder’s name will appear on the title.
Titles must contain a unique vehicle identification number (VIN). Each vehicle in the U.S. is given a vehicle identification number that is embossed on the car or truck on the dashboard and can be viewed through the windshield. It may also be found in the engine compartment and on a sticker inside the driver’s side door. This VIN should match the one that is on the title. If not, there could be some questions regarding ownership.
Titles will contain vehicle history. This information is vital when purchasing used vehicles. If a car or truck has been in an accident, you will be able to gather that information from the title. A car that has been damaged in any way will have designations on the title that make it clear that the car is not in new condition.
Titles are used in all transactions involving the vehicle. When you buy or sell a car, a valid title is necessary. As a buyer of a used car, it is imperative that you check to make sure that the title is valid. Owners who lose a title must take steps to replace it. States will reissue a title with the proper documentation. Car titles can also be used to take out loans. Owners can borrow against the value of their vehicle from lenders such as Embassy Loans of Florida. The lender becomes a lienholder until the loan is paid in full. Vehicle owners use car title loans when their credit is less than ideal and when the need for cash is imminent.