A car title is a legal document that serves as proof of ownership of a vehicle. This document contains important information, including the name of the vehicle’s owner and the vehicle identification number (VIN).
Now that you know what a title is, it’s time to learn more about this important legal document. Here are the answers to some of the most frequently asked car title questions:
When Do I Need to Transfer A Car Title?
A title transfer will need to be completed whenever the vehicle’s ownership changes. A title transfer ensures that the right person is recognized as the legal owner of the vehicle. You may need to transfer a car title in a number of different situations, including:
- You are selling or buying a car
- You are giving your car to a friend or family member
- Your friend or family member has given you a vehicle as a gift
- You are inheriting a vehicle
- You have finished paying off your car loan.
- You need to correct the name on the title. For example, if you recently got married and changed your name, you may need to update the title to your vehicle
The steps you will need to take—and the fees you will be required to pay—to transfer a title will vary from state to state. If you need to transfer a car title, it’s best to contact the title agency in your state to find out what you will need to do to complete the transfer.
What Should I Do If I Lost My Car Title?
A car title is just a single sheet of paper, which is why so many people lose, damage, or misplace this important document. If you’re in this situation, it’s important to obtain a replacement title as soon as possible.
The process of requesting a replacement title varies by state. But typically, you will need to contact your state’s Department of Motor Vehicles (DMV) in order to obtain a replacement.
The DMV may ask you to provide documentation that proves that you are the owner of the vehicle. For example, you can submit the paperwork for your car loan to show you are the legal owner of the vehicle. You will also be required to pay a small fee to get a replacement title.
What Are Clear Titles?
The term “clear title” is used to describe a title that does not have any liens or levies on it from creditors. If you have a clear car title, this means you own the vehicle outright.
Why Is There A Lien on My Car Title?
A lien is a legal claim to assets to secure the repayment of debt. If you finance the purchase of a vehicle, the lender will be named as a lienholder on the vehicle’s title. This means the lender will have the legal right to take ownership of the vehicle if you fail to repay your debt.
However, if you repay your debt in full, the lender’s name will be removed from your vehicle’s title. This means there will no longer be a lien on your title since you now own the vehicle outright.
What Is A Car Title Loan?
If you own a car, you can use the title as collateral to secure a car title loan. The lender will be named as a lienholder on your title until you have repaid the car title loan in full.
You will not lose the right to use your vehicle—in fact, the lender will allow you to continue to use your vehicle while you repay the loan. But if you fail to make payments, the car title lender can take ownership of your vehicle.
How Much Money Can I Get Through A Car Title Loan?
A number of factors will affect how much money you can get through a car title loan, including:
- Value of your vehicle
- Type of vehicle (motorcycle, car, or RV)
- Laws in your state that establish minimum and maximum title loan amounts
- Your monthly income and ability to make regular payments
You can find out how much you possibly qualify for through a car title loan online. Submit some basic information to LoanCenter to find out how much you qualify for in a matter of minutes.
How Do I Get A Car Title Loan?
Taking out a car title loan is not hard. You can apply for a car title loan online or over the phone. You will be required to submit certain documentation during the application process, including:
- Your driver’s license
- The title to your vehicle
- Proof of income
The lender will review your information and decide whether or not you are approved as quickly as possible. If you are approved, you will receive cash from your lender. Get started today by contacting a loan representative at LoanCenter!
This is not a guaranteed offer of credit. Loan approval is subject to meeting the lender’s credit criteria, which include demonstration of your ability to repay the loan, providing collateral of acceptable value and equity, and the grant of a first priority lien on your motor vehicle.