Vehicle title

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A vehicle title (also known as a car title) is a legal form, establishing a person or business as the legal owner of a vehicle. Vehicle titles in the U.S. are issued by the state DMV.

The certificate of title normally specifies:

Identifying information about the vehicle, normally at minimum its vehicle identification number, make, and year of manufacture.
The license plate number.
Technical information about the vehicle to define its taxation regime, e.g, its gross vehicle weight, motive power, and purchase price when new.
The name and address of the purchaser or "registered owner" who would normally possess and use it.
If money is owed on the vehicle, the name of the lienholder or "legal owner" to whom this money is owed.

When a vehicle is financed, the certificate of title is normally held by the lender, who must release it to the purchaser once the balance is paid off. When a car is sold from one owner to another, the title must be transferred to the new owner. This is achieved by requesting approval by the state DMV.

In the United Kingdom the vehicle title is known as a 'V5' document, and is issued by the Driver and Vehicle Licensing Agency (DVLA).

[edit] Car Title Loans

Main article: Title loan

Vehicle titles are also used for car title loans, where a lender will loan the car's owner money in return for keeping the car title until the debt is paid off. Car title loans are marked by high interest rates, a short time to repay the loan, and the loan amount is usually less than the cars monetary worth. Also the loan risks losing the car to the lender if the loan is not paid back. These type of loans are marketed as small emergency loans.