Hello, friends. Today, we’ll explore many facets of vehicle titles. But before we get into the types of titles that exist, let’s begin with some basics.
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Vehicle Title Basics
What is a vehicle title?
A vehicle title is a, state-issued document that acts as proof of ownership. Every vehicle has a corresponding title, from the moment it is manufactured (this is often called an MCO – manufacturer’s certificate of origin) and throughout its working life. In order to officially be declared legal owner of a car, truck, SUV, RV, or motorcycle, the certificate of title must be in your name.
Why is a vehicle title important?
Most vehicle transactions require a the presence of title in order to be valid. This includes buying a car via private sale, inheriting one, or receiving one as a gift. In the majority of these cases, a title transfer must be made. Without a title, chances are you would not be able to go through with any sort of transfer of ownership.
What is a title transfer?
A title transfer is when the legal owner of a vehicle signs over the title to the person who will become the next legal owner. Signing over the title means that the seller (or the person gifting or donating the vehicle) signs their name in the designated areas on the title, while the the buyer (or the person receiving the gift or donation of a vehicle) fills in the corresponding buyer areas on the title. In some states, this action must be done in the presence of a notary public.
Can I complete a title transfer online?
Yes, in many cases you can complete a title transfer online. The certificate of title must first filled in accurately by the seller and buyer, and then eTags.com can help facilitate the transfer and help the new owner get their title in the mail.
7 Most Common Types of Vehicle Titles
1. Clean/Clear vehicle title. This is the most common type of title. Having a clean/clear title means that:
- There are no major accidents to report in the vehicle’s history
- There has been no major structural changes or damage to the vehicle
- There are no associated debts or unpaid loans that correspond to the vehicle
2. Electronic vehicle title. This is a secure, paperless, digital document that is generally kept by the state and/or the DMV. In some cases, you can request a printed copy of your electronic title.
3. Lienholder vehicle title. A vehicle that has an active lien (outstanding loan) will have the name of the financial institution/lender/bank on the front of it until the lien has been satisfied.
4. Salvage vehicle title. A salvage title is issued when an insurance company declares the vehicle a total loss. This is often due to repairs costing more than the car’s worth.
5. Reconstructed/rebuilt vehicle title. When a salvaged vehicle has been repaired and/or reconstructed and has passed a safety inspection, it will be issued one of these titles.
6. Bonded vehicle title. This type of title is used when a owner is missing the right paperwork and therefore buys a special security bond to prove ownership. The bond is a form of protection for the chance that someone else might claim they’re the rightful owner down the line. These titles are generally valid for 3 to 5 years.
7. Lemon vehicle title: A lemon title is given to a vehicle that has had serious factory defects – repeatedly – that the could not be fixed.
And these are some of the most common types of vehicle titles you may come across. Remember, for title transfers, title replacements (duplicates), and to add or remove a name from a title, you’ve come to the right place! Visit our homepage, select your state from our drop-down menu, and choose the title service that best suits you. And if you need assistance at any point, don’t hesitate to reach out to us…because as always, at eTags, we’re here to help!
