A car title, also known as a certificate of title, is a legal document that proves who owns a vehicle and provides details about the vehicle's history. Some folks refer to car titles as "pink slips" since it was common at one time (and still is) for the Department of Motor Vehicles, or DMV, to print car titles on pink paper in some states. 

Since titles serve as proof of ownership for cars, trucks, SUVs, vans, and other vehicles, consumers looking to buy, sell or register a vehicle can benefit from a car title primer.

### Title Information

Although the information on your vehicle title varies depending on where you live, most car titles contain pretty much the same information about the car and its owners/previous owners. Keep in mind that vehicle registration and a title have a lot in common but are two separate documents. 

__Here's the information typically found on an original title:__

- __Vehicle identification number:__ The vehicle identification number, or VIN, is a number that identifies the vehicle. If you're considering purchasing a new car, check the VIN on the title to make sure that it matches the VIN on the vehicle. The identification number can usually be found on the driver's side of the car's dashboard near the windshield. If you don't see it there, check the bottom of the driver's side door pillar with the door open.

- __Odometer reading:__ The title should also show what the car's mileage was when the owner applied for the title. If the mileage says "Not Actual," that means that the odometer disclosure may not be accurate. While it could be an honest mistake that occurred at some point along the vehicle's paper trail, you should be cautious, as the odometer may have been rolled back.

- __Owner information:__ The car title should clearly state the contact information, including the name(s) and address(es) of the current owner and any other owners from the past. If you're going to become the car's new owner, be sure to verify that information first, so you know you're buying the vehicle from a valid legal owner.

- __Vehicle details:__ At the very least, the title will state the car's make, model, and model year. It may also have other information such as the style of vehicle, the number of the license plates, the car's weight class, and how it runs (gas, diesel, electric, or hybrid).

- __Lender details:__ If the previous owner financed the purchase of the car, the lender's name and address would be listed on the title, usually in the section reserved for lien holders. Until the loan is repaid, the lender is the legal owner of the vehicle. Only after the amount owed on the vehicle is settled can the owner request an electronic lien release to remove it. 

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### Types of Car Titles

Not all titles are the same. As long as the vehicle hasn't had any significant issues, you should receive a standard title, known as a clean title. 

__However, if the car has been damaged in some way, it may have one of these titles:__

- __Lemon law title:__ Some states have lemon laws that protect the buyer if the vehicle turns out to be defective and can't be fixed within a certain amount of time after a certain amount of attempts. If the car does turn out to be a lemon, the original seller will buy it back. These buyback lemons can be resold, but the title must state that the automaker repurchased them. Always be extremely cautious when purchasing a car with a lemon law title.

- __Salvage title:__ Cars that have been in major accidents that cause significant damage will have a salvage title. The salvage title means an insurance company has determined repairing it with new parts will cost more than it's worth. However, it can be fixed by a third party with used or refurbished components. Like lemon law titles, you should never buy a car with a salvage title unless you're confident that it's a smart decision. When it comes to shopping for used vehicles, deals that seem too good to be true usually come with a catch.

- __Rebuilt title:__ A car with a salvage title that has been repaired gets a rebuilt title. In other words, the vehicle used to be severely damaged, but now it's in driving condition. Just because a car has a rebuilt title doesn't necessarily mean that the repairs were performed correctly and with manufacturer-approved parts. Be sure to have the vehicle thoroughly inspected by a trusted mechanic before you considering buying it.

- __Flood title:__ A car with a flood title has gone through water damage. While that may not seem like a big deal, a car with a flood title has sat in water that's deep enough to fill the engine compartment. Unfortunately, some vehicles with flood damage may be taken to a service center, cleaned, "repaired," and subsequently sold in a different state. Check the vehicle's history from sites like Carfax before considering a transfer of ownership.

Consider that if you are buying a new car, you likely won't have to deal with getting the initial title paperwork filled out yourself. The dealer usually handles all that, including providing the DMV or other state vehicle registry with the certificate of origin necessary when initially titling a car.

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### Title Transfer

__Fortunately, this is a reasonably straightforward process:__

- First, check the back of the title for the Title Assignment sections. The seller completes one section, and the buyer completes the other. Required information typically consists of names, addresses, and vehicle details.

- Although filling out this information is easy, you must be extremely careful. If you make an error, you can't undo it. You'll have to provide a bill of sale and notarized documents and affidavits to obtain a duplicate title or replacement title, which is an easily avoidable pain that neither of you wants to deal with. One of the most common errors is that the buyer or seller will put their information in the wrong section, so triple-check where you're writing.

- Finally, the seller must keep a photocopy of the car title for at least 18 months. That protects them if the new owner has a legal problem related to the car. For example, say the new owner never re-registered the vehicle and then crashed into a building. Now, because the vehicle owner's name is still technically yours, you're legally obligated to pay for the damage caused by "your" vehicle.

If this type of nightmare situation occurs and you don't have a copy of the title, a lawyer should help you. However, nobody wants to deal with that kind of headache. Your copy of the transferred title protects you and makes it easy to clear up the situation.

### Obtaining a New Title

You must keep your car title in a safe location. However, sometimes accidents happen, and the title may become lost or destroyed. Fortunately, there are steps you can take to get a duplicate title. The process varies depending on where you live. Still, usually, you'll need to go to the local DMV with your driver's license or ID card, fill out and show the required paperwork, including a title application, and pay a title fee.

Before you buy or sell a vehicle, it's important that you understand how car titles work. Read this informative guide so you can proceed with confidence.

What is a Car Title? - Your Complete Guide

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