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Title for Vehicle Basics: What To Know About Your Vehicle Title

When you own a vehicle, one of the most important documents to have is the title for that vehicle. The title is what proves you own the vehicle and that it is lien-free. Read on to learn the most important information regarding the title for your vehicle.

What Is a Title for Vehicle?

A title for a vehicle proves who owns the vehicle. If you don’t own your vehicle’s title, you can’t legally prove that the car is yours. In other words, a vehicle title is essential if you ever need to prove the ownership of the vehicle.

The vehicle’s title will be issued by the state department of motor vehicles whenever the vehicle is sold. This title will include pertinent information, such as the owner’s name, the vehicle identification number, weight class of the vehicle, and other important information.

Why Is a Title for Vehicle Important?

The title is important for one reason: it proves who owns the vehicle outright. If you do not have the title, there’s no way to prove that the vehicle is yours. In other words, you won’t be able to get a title loan, and there isn’t much to be done from a legal standpoint if the vehicle is stolen since you can’t prove that it’s yours.

What Is a Lien-Free Title for a Vehicle?

When you first start learning about titles, you will likely hear the phrase lien-free title. What exactly is this? Vehicles still being paid off will have a lien against the title. The lien simply shows that the vehicle is not entirely in your possession yet due to the loan. Therefore, a lien-free title is one that has no outstanding debts against it.

When a title is lien-free, it means that the vehicle is entirely in your possession. You have paid off the bill entirely, and you don’t owe any money to anyone. You are now free to do with the vehicle as you like since it is now your sole property.

How Can I Use a Title to Get a Vehicle Title Loan?

Your vehicle’s title is useful for more than just proving vehicle ownership. It can actually be used to help get you some money through what is known as a vehicle title loan. A vehicle title loan is a form of a secured loan, which means collateral is used to ensure you pay back the loan. In this case, the vehicle is used as collateral.

In order to qualify for a title loan, you will need a lien-free title in your name. It must be lien-free so that you are the sole owner and the vehicle is not being paid off any longer. Additionally, the title needs to be in your legal name to reflect your ownership of the vehicle.

At Idaho Title Loans, Inc., you can get up to $15,000 with a vehicle title loan. The exact amount you are loaned is dependent on the value of the vehicle and how much you need. Once again, the title requirements are that it must be lien-free and in your name.

What if the Title is Not in My Name?

If the title is not in your name, you will need to go to your DMV and get it transferred to your name before you apply for a title loan. This issue is a relatively easy fix.

What if the Title is Not Lien-Free?

If the title is not lien-free, you will have to pay off all outstanding debts against the vehicle before you use the title for a title loan. So, you must pay off any loans so that the title is lien-free before you can use it to qualify for a title loan.

Do I Get to Keep My Vehicle if I Apply for a Title Loan?

Many first-time title loan applicants are worried that they will lose their vehicle if they apply for a title loan. You do not have to worry about this issue. Whenever you apply for a title loan, you get to keep your vehicle. Even if you are approved for a title loan, the vehicle will stay in your possession.

How it will work is that a lien will be put against the title, showing that you are now paying back a loan on that vehicle. Continue to drive your vehicle as usual while you’re paying back the loan. Once the loan is paid back in full, the lien will be removed, and the vehicle is solely yours once again.

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Apply for a Vehicle Title Loan Today!

A title for a vehicle proves that the vehicle is yours and yours alone. You will need this for legal reasons or to get a title loan. If a title loan sounds like an option for you, you can get started today by filling out the Idaho Title Loans, Inc. inquiry form. We will call you shortly after to walk you through the rest of the process.

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.

Louis Tully

Louis Tully is a full-time finance writer offering financial expertise to everyday consumers. He understands the core values of finance and used his writing talents to share his own experiences with money to his readers. His articles teach how financial failures can easily become successes by making new habits and creating realistic goals.