A vehicle title, more formerly known as a certificate of title, is a state-issued document that acts as proof for ownership. In other words, whoever has the title owns the car, even if someone else drive’s it like if you’re financing a vehicle you got from a dealership.
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A vehicle title is colloquially called a pink slip too
If you bought, were gifted or inherited a vehicle, a title transfer is needed. The seller will sign over the title to you, so they’re no longer responsible for anything that happens to the vehicle. Once the title is signed to you, any parking ticket, car accident claim, damage, unpaid tolls, all become your responsibility. For quick and easy title transfers online, you can go to etags.com. There’s no appointment needed, no waiting in line, and plenty of payment options even pay-over-time.
Where a car title begins
Every vehicle manufactured has certificate of origin, which is in fact the very first vehicle title issued by the automaker. This certificate of origin is then given to the car dealership the vehicle was sold and sent to. This is also sometimes called a manufacturer’s statement of origin; it’s used to transfer the vehicle to the first owner and get the title. At this point of the title’s journey through various owners, a car buyer or even private seller isn’t really affected
Clean vehicle title
A clean title is what’s most common, it’s the default vehicle title. It’s never experienced severe damage or been part of a fleet. When car buying, that’s what you should be looking for. But not all clean title vehicles are necessarily “clean,” some are washed titles. That means that title was altered to remove information it should normally contain. This typically happens when someone wants to hide major damage like flood.
Clear vehicle title
A clear vehicle title states there’s no outstanding financial burden attached to the vehicle like a lien that would prevent it from being sold. So if you buy a vehicle with a clear title you know it’s free of any debt.
In many cases, a clear title is the only title to qualify you for a car loan
Electronic vehicle title
In many cases, a vehicle title is held electronically by the DMV. This means no paper title was ever issued, instead there’s a digital copy of it. You can ask to have this title printed in case of transfer.
Lienholder vehicle title
A vehicle with a lien or title loan may have a title issued directly to the lienholder. The car buyer is listed as the owner, but the title will list the lender as lien holder, and keep the title until the lien (loan) is completely paid off before transferring the title to the owner.
Salvage vehicle title
A salvage title is given to a vehicle when it acquires some type of loss event like major damage, theft, or repair. A car gets a salvage title if loses more than 75% of its original value. The salvage title is normally issued by the car’s insurance company and could even be issued to cars with little or no deterioration. These types of vehicles can legally be on the road, if they can pass a safety inspection.
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The salvage title designation is shared with all 50 states
Bonded vehicle title
When there isn’t enough ownership documentation, a bonded title is used. A security bond is purchased equaling the amount of the value of the vehicle, covering any future claims. The bond is used to pay to remove the claim of ownership or lien.
A bonded title will have “bonded” stamp in it for a period of 3 to 5 years
Reconstructed vehicle title or rebuilt title
In this case, the vehicle has gone through significant repairs or transformations. A reconstructed title can be issued by the insurance provider or the repair shop that has done the work. Once the vehicle passes an inspection, it can be registered and used on the road. A rebuilt vehicle title works in the same way.
Dismantled vehicle title
When repairing a vehicle is more expensive than its actual value, a dismantled title is needed to sell the remaining parts or used for scrap metal. The vehicle can’t be re-titled or be driven on the road.
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