Everyone has probably rolled their eyes when they hear their parents and grandparents repeat that, back in their day, they only paid cash for things. If they didnât have the money, they didnât buy it - thatâs just the way things used to be. But now we live in a day and age when most people purchase things with credit - especially when it comes to a big-ticket item like a motor vehicle. After all, what with a $20,000 (and up!) price tag, who has that kind of cash? Automobile companies and dealerships make it easy to buy a new car by offering low-interest loans. But if you have a loan on your vehicle, you really donât own it yet, because you donât possess the title to your car - the company that financed your loan does. The same holds true for everyone who borrows money using short-term auto title loans; the title loan company will hold the vehicle title until the loan is paid off.
What is a vehicle title? Itâs a legal document called the âCertificate of Title,â usually issued by a stateâs Department of Motor Vehicles (DMV), that establishes a person or business as the legal owner. Each title contains the information that identifies the vehicle, including the vehicle identification number (VIN), the make, model, and year it was manufactured, the license plate number, the odometer reading, and the name and address of the purchaser (also known as the registered owner). Each state has its own form of title, as well as the method of taxation for the vehicle; therefore, the information needed to calculate the tax would appear on the title, whether it be the vehicleâs gross weight and/or the list price.
If there is a loan on the vehicle, the name of the lien holder (also known as the legal owner) to which the money is owed also appears on the title. And it is this entity who holds the vehicle title until the loan is paid off in full. Once that occurs, a notary publicâs signature is required to release the lien. The same holds true for auto title loans.
Other vehicle title issues include what you need to do if you move to another state, what to do if you lose your title, and what to do when you sell your vehicle. If you move to a new state, youâll need to transfer your vehicle title so that itâs registered in that state. You can do this at the DMV. The professional staff at Cash Time Title Loans, Inc. can also help you with any title transfer. When the vehicle is sold to another owner, the vehicle title will transfer to the new owner, and a notary public signature is required for the transfer. Finally, if you lose you vehicle title, contact your stateâs DMV. They will require proof of ownership in order to issue a new Certificate of Title. Unless you have the vehicle title in your possession, there is no legal document stating you are its owner.
