If you own a car, the title may need to be transferred when selling, gifting or moving to another state. Here’s what you need to know about car titles before selling your junk car.
What are car titles?
Car titles are essential documents that prove who owns a vehicle legally. They include the vehicle identification number (VIN), information on its owners such as full name and address, plus any liens against it from lenders who put up money for purchase.
A car title also contains essential data, such as its odometer reading at the time of issue and whether or not it has ever been “totaled,” meaning total loss or destruction due to an accident or theft.
In addition to a VIN, the title will also display the make, model and year of the car. It also contains its title number–an unique identification used for vehicle tracking by state agencies.
Types of car titles
There are various types of car titles, each with its own significance. It’s essential for all parties involved to know what each title signifies – whether that be the dealer or individual. For the purpose of selling your junk car, there are three types of car titles – clean title, rebuilt title, and salvage title.
Clean titles, also called clear titles, are the most common type of car title and demonstrate that a vehicle has had no major damage or accidents. They’re considered to be the ideal type of title to possess. These titles usually include a detailed description of the vehicle, such as its year, make and model plus VIN (Vehicle Identification Number). They also note the odometer reading when issued and who owns it.
Rebuilt title refers to a vehicle that has been in an accident and has since been rebuilt or repaired. Even though the car might run, it’s important for future owners of a car to know if it was in a serious accident.
Salvage titles are used when a vehicle cannot be rebuilt and needs to be scrapped. While it’s not impossible to fix, a car is considered a mechanic special if the cost to repair is beyond its resale value.
How to transfer car title
When purchasing or selling a car, it is essential to transfer its title to prove legal ownership. Most people don’t know how to sign over title or where to sign a car title. The process of filling out a title transfer varies from state to state, but the steps below are most common when transferring title for a car.
- Both the buyer and seller agree on terms for the sale of the car
- The seller signs the car title to relieve ownership.
- The buyer signs the title to claim ownership.
Additionally, the buyer must sign and complete a bill of sale and pay any applicable fees and taxes. Once these steps have been completed, the state issues a new registration and title.
However, in certain situations transferring a car title may prove more complex than expected. For instance, if there is a lien on the vehicle, then the lender typically needs to sign an affidavit as well.
How to replace car title
A car title is an important document proving you own a vehicle. It includes the vehicle identification number (VIN), owner’s name and other important details about the car.
If you lose your original title, a replacement title can be issued to you. You have two options for applying: online or via postal service.
Additionally, there may be other reasons why you might need to replace your car title. For instance, if it was lost or damaged due to flooding or burglary.
Once you become aware of a missing title, it’s best to replace it quickly. Failure to do so could leave you in an uncomfortable situation down the line.
In many states, replacement titles are available at a fee. Check with your state’s DMV to find out how much it costs and how you’ll pay for it.
In most cases, your new title will be sent to you via mail. Delivery timeframes range from two to six weeks depending on where in the world you reside.