What is a Car Title?

No matter if you're buying a new or preowned car, there's the necessary documentation. If you've had any big purchases in your lifetime, then you know there are legal aspects to transferring the item into your name. Part of the necessary paperwork is the car title. Here at Toyota of Jackson, we've prepared this helpful guide to help you understand all the imperative information regarding a car title, including what it is, the different types, and how it relates to the car buying process.

What Is A Car Title? 

A car title contains essential information, and it comes from the state you reside in. While the information that can be found on it differs depending on where you live, titles usually contain the following: 

• Information that's used to identify the vehicle (The make, model, VIN number, year, mileage) 
• Current license plate information
• Your full name and address
• Date the title was issued to you

The title is an important piece of information if you wish to sell your vehicle. If you're currently financing the car, the title will also include the agency you borrowed money from. A title officially gets transferred to your name once the loan is paid in full. Any title should match the information on the vehicle (i.e. the VIN number and odometer reading, for example)

What Are The Different Types Of Car Titles? 

Titles are given a status based on their condition. It's important to know this information when buying or selling a vehicle, especially a pre-owned one.

1. Clean Title- A clean title is an ideal status for most car owners. With a clear title, it means no significant damage has occurred on the vehicle, and it's in optimal mechanical condition. New cars are always assigned a "clean" title, and it's also recommended to find clean with a pre-owned one as well.
2. Clear Title- A clear title means there are no payments due on the loan of the vehicle. If you initially financed the car, the vehicle now legally belongs to you once the loan is paid off. You typically receive the official title in the mail within a few weeks. 
3. Salvage Title- A salvage title means that car has an accident history, usually a severe one, with significant damage. It's most likely been determined as "totaled" by an insurance company. Most mechanics don't recommend these vehicles safe for driving, and it can also be quite challenging to get insurance coverage when a car has this title status attached to it.
4. Rebuilt Or Reconstructed Title-  Rebuilt/reconstructed titles were once "salvage" vehicles. While the necessary repairs have been made, it can still be difficult to get insurance coverage for such a vehicle. It will be challenging to sell such a car, and this status can't be "clean" ever again.
5. Junk Title- A junk title means that there is damage that exceeds 75 percent of the vehicle's value. Some states use the terms salvage and junk interchangeably. 

What Is Important To Remember About Car Titles? 

• A car title proves that you are a legal owner of the vehicle you own
• Information you find on a car title should match what's on the car ( VIN number)
• You will not receive the car title until you've paid off the entire loan
• There are different names assigned to car titles, depending on the condition of the vehicle
• "Clean" is regarded as the most desired type of car title- and typically this is the only status that will qualify for a loan

What Happens If I Lose My Car Title? 

It's always recommended keeping your car title in a safe location with the rest of your important documents. However, if you lose the original, don't fret. You can request another, but you'll need to gather important information about the vehicle beforehand. Of course, if you have additional questions, it's best to contact your local DMV. 

Still Have Questions About Car Titles? Call Toyota of Jackson!

There's no need to worry if you buy a new car from our dealership. We take care of the entire process, including getting your registration and license plate information. If you're planning to trade in a car with us, we'll handle that for you as well. Don't hesitate to give us a call or come by the dealership to get all your questions answered or to check out our new or pre-owned inventory.