Why Is a Car Title Important?

new car owner signs paperwork gets handed keys

When purchasing a new or used vehicle in the U.S., you'll most likely read through and sign several documents before claiming the keys to your new set of wheels. One of the most important documents you'll receive is your car title, the legal document that authorizes you as the owner of the vehicle.

Car Title Basics

Your car title usually will come from the state where you purchase the vehicle. If your resident state is different from the state of your vehicle purchase, make sure you take your car title to your local (home state) Department of Motor Vehicles when registering. If you're purchasing a vehicle out of state, make sure you know the state's title process. Generally, your car title will include the following information:

Types of Car Titles

While there are many different types of car titles (according to CarTitles.com), some common ones include:

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