How Much Is a Title to a Car

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When purchasing a new or used vehicle, you'll need to consider the additional costs that go along with the vehicle's purchase price. You might wonder how much is a car title, registration, and other fees? Before you gather your funds, arm yourself with knowledge about these specific documents.

What Is a Car Title?

A car title, which is also referred to as a vehicle certificate of title, provides proof as to the legal owner of the vehicle. It can also show if the vehicle is defective or damaged. The lender sends you the document once you've paid off the car loan. Depending on your state, you might need to submit certain documents to the department of motor vehicles (DMV) to obtain a valid title.

What Information Can You Find on the Title?

According to Credit Karma, the title shows a variety of information, including the following:

• Assignment of title: This shows the ownership change. If you sell the vehicle, you must fill out this section before the new owner receives the title.
• Car details: The vehicle's make, model, and year of manufacture are usually provided here.
• Lienholder: If you finance or lease your vehicle, the title typically includes the current lienholder. Most states allow the lienholder to have possession of the title until the owner pays off the auto loan. Afterward, the lienholder must send the title indicating that the lien was fulfilled.
• Odometer reading: The title might include a space to list the vehicle's mileage when the sale occurs.
• Owner: The title states the vehicle's current owner's name.
• Vehicle Identification Number (VIN): The VIN consists of 17 characters and is provided by the car's manufacturer.

How Do You Transfer the Car Title?

The car title transfer process varies depending upon the state. If you need help, check with the American Automobile Association (AAA), which has a list of transfer laws for each state. Typically, how you start the process depends on how you sell your vehicle, according to Credit Karma. This includes selling to a private party or dealer and whether you seek cash or credit as a trade-in.

If a private party purchases your vehicle, you must fill out a title certificate. If you're buying a vehicle from a private seller, the seller must transfer the title to you.

However, if you still owe money to a lienholder on the vehicle, you might need to pay off the outstanding amount before you can transfer the title. Ask your lender if the buyer can make a direct payment for the vehicle's loan balance.

To finish the title transfer process, complete the following:

• Sign the title: Sign the document to release the vehicle's ownership to the buyer. Depending on your state, your signature may have to be notarized. Add the purchase date and price.
• Transfer ownership: The buyer must fill out a title application with the state's motor vehicle department. The buyer might also need a safety or emissions certificate. Most states set a limited time to transfer the title to the buyer's name, otherwise additional fees apply.
• File the paperwork: You might also need a bill of sale that states the vehicle's sale price. You and the buyer can mail paperwork to the motor vehicle department, but filing it in person is the quicker option. You might also be able to submit your forms online.
• Know the rules for selling to dealerships: Keep in mind that some states don't require dealerships to change the title to the dealer's name. If this is the case, you might need to submit a Vehicle Transfer Notification form with the DMV to signify that you sold the vehicle to the dealership.

How Much Does a Car Title Transfer Cost?

The overall title transfer cost varies by state. Also, some states offer a discount if you transfer the title between family members.

If you're buying or selling your vehicle out of state or cannot locate your original title, there are additional steps you must take. Out-of-state plates mean that you must verify the VIN, and fees are different. For lost titles, most states let you request a duplicate for a fee.

If the title isn't transferred to the buyer's name, you might be responsible for fees associated with the vehicle, such as tickets or tolls.

Car Title Types

There are several different types of car titles, and it's important to know which one you have:

• Clean title: A clean title means that the vehicle has not experienced any type of significant damage.
• Flood title: This title signifies that the vehicle experienced water damage from a flood and the water filled the engine's compartment.
• Lemon Law title: This can indicate the manufacturer received the car because of serious defects covered by that state's lemon laws.
• Rebuilt title: States issue this to a vehicle that was rebuilt to pass the state's standards for inspection.
• Salvage title: This states that the insurance company once declared the vehicle a total loss because of an accident or other issues.

Typical Costs When Buying a Vehicle

When purchasing a vehicle, you will pay more than the sticker price. That's simply due to the state government wanting a piece of the action. According to Compare.com, some of the fees you might deal with include the following:

• Documentation fee: Dealerships usually charge fees to do all the purchase paperwork.
• License plate fee: This cost might be included with your registration. Certain states let you transfer plates from your old car to the new one, while others demand brand-new plates.
• Lien recording fee: If you have a lien or loan on the car, the DMV might charge you to record the title's lien.
• Personal property tax: Certain states mandate an annual tax on your vehicle's value.
• Registration fee: Your state charges a fee to register your vehicle. The fees vary depending upon the state. Some states have a flat fee, while others vary the price depending on the vehicle. Also, you might be able to deduct the registration tax.
• Sales tax: Most states have a vehicle sales tax, while city and county governments might also add their own taxes.
• Title transfer fee: This document shows you as the vehicle's owner.

It's important to be prepared when buying or selling your vehicle, especially when it comes to filling out paperwork. Properly filling out the title and paying the necessary fees can expedite the process. Check with your specific state to determine the car title transfer fees.

Information and research in this article verified by ASE-certified Master Technician Duane Sayaloune of YourMechanic.com . For any feedback or correction requests please contact us at research@caranddriver.com .

Sources:

https://aaa.com/

https://www.caranddriver.com/news/a15350120/lemon-aid-what-you-need-to-know-about-vehicle-lemon-laws/

https://www.caranddriver.com/shopping-advice/a25629230/how-to-buy-a-car/

https://www.compare.com/auto-insurance/coverage/vehicle-costs

https://www.creditkarma.com/auto/i/car-title-transfer-how-to/

https://www.creditkarma.com/auto/i/what-is-a-car-title/

https://drivinglaws.aaa.com/tag/title-and-registration-fees/

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How Much Is a Title to a Car

Source: https://www.caranddriver.com/research/a32798893/how-much-is-a-car-title/

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