A car title is a document proving the legal ownership of a vehicle. You need a car title to register a car with the local Department of Motor Vehicles, or DMV. If the car title is not transferred from seller to buyer, the buyer does not have legal ownership of that vehicle.

A car title will contain a wide variety of important details about your vehicle, including:

• Name and Address: To prove you are the registered owner or buyer of the vehicle, your full legal name and address will be printed on the document. This can assist you in case your car is lost or stolen, as you can quickly prove you are the legal owner.
• Make, Model, and Year: Manufacturing details like the make, model, and year not only show where your car was made but can help identify it if the need arises. A vehicle's make denotes the company responsible for the manufacturing; the model is the name of the product line the car comes from; and the year is whatever year your specific vehicle was manufactured.
• VIN Number: A VIN, or vehicle identification number, is a unique combination of 17 characters that serves as your vehicle's unique fingerprint. A VIN is usually a mixture of digits and letters, and no two cars (within a several-decade range) can have the same number.
• License Plate Number: Like a title, a license plate is required to show legal registration within the state you reside in. Your license plate number will be printed on your car title and can also help identify your vehicle when necessary.
• Lien Information: A lien functions as an insurance policy for a lender to guarantee repayment of a loan. If your vehicle has a lien, all details related to that lien will be on your car title. This helps ensure the debt is paid before the car can be sold or transferred.
• Technical Information: The technical information on your car title will include details like its gross weight and purchase price. What info your title contains will depend on the vehicle type and the state you live in.
• Data specific to title type: While most car titles contain the details above, There are a variety of car titles with different information. These titles can have details about damage, insurance ratings, repairs, and more.

Now that we know what a car title is, how does the process of transferring a title work?

There are two main steps to transferring a car title:

• The seller signs the title to release ownership.
• The buyer then takes the signed title to the DMV, who will issue a new title and registration.

These two steps can be further elaborated as two categories: the seller's responsibility and the buyer's responsibility.

Seller's Responsibility

As the seller of the vehicle, you must complete all the requisite paperwork to finalize the sale. This will vary depending on your state, and you can check your local DMV's website for the exact details. The one step all states require is your signature on the car title, but your state may also ask for a series of documents including:

• Bill of sale
• Transfer of ownership form
• Buyer's name and contact information
• Sale price
• Odometer reading

If multiple people own the car, all must sign the document. You also may need to get the document notarized, though this is only required in some states. Once you have assembled all the paperwork and signed the title, you will give them to the buyer.

Buyer's Responsibility

Once you have the car title, it's your responsibility as the buyer to take the documents to the DMV. If the purchase occurs through a dealer, they may handle all of this paperwork for you; then, you will receive your new title from the DMV in the mail. But if the sale is done privately, you will have to complete this step on your own.

Ensure the seller has provided all of the documents listed under the "Seller's Responsibility" section and you've gathered all the necessary personal information. This information may include proof of residence documents, your driver's license, and possibly another form of identification.

You may also need to pay a title transfer fee, ranging in price from state to state. In Washington, for example, a title transfer fee is $15.50. In addition, there may be other costs associated with getting the new vehicle, like a registration fee and plate transfer fee.

You will also want to check whether the vehicle has an active lien against it. There is a slightly different set of procedures to follow if it does.

If the only name on the car title is the seller's, that means that it is entirely within their rights as the owner to transfer the title. However, if there is a lender's name on the title, that means there is a lien on the car. The lien and the associated loan must be settled before the vehicle can be sold. It is sometimes possible to transfer a car title with an active lien, but it can make the process more complicated. The seller should contact the lender for more details on how the transfer should be completed.

Cars can also be owned by two entities, like a married couple. If this is the case, you will see two full names on the car title. If two people own the vehicle, both parties' permission is required before a car can be sold. If the vehicle is purchased, both people also need to sign the title to complete the transfer.

Before completing a car title transfer, you want to get more information about your potential purchase. If you're going to get the complete vehicle history report, conduct a VIN lookup, or find a list of recalls related to the vehicle, you'll need a vehicle research tool. GoodCar can help you find all the details you need to make an informed purchase; we source our information from thousands of databases to get the relevant facts and figures about your car. Don't make the mistake of buying a bad vehicle; let us help. Try our search engine today!