Have you ever seen a birth certificate? It’s a document that proves a person’s identity by listing their name and personal information. With this piece of paper, you can also confirm their parents. That’s what a title is to a vehicle. It confirms a vehicle’s information and who owns it.
Although Big Valley Auto Auction doesn’t distribute birth certificates, we do follow the process of carefully distributing vehicle titles. For nearly 2 decades. We’ve followed this process to ensure the proper exchange of vehicles between the buyer and seller.
In this article, you’ll learn what a vehicle title is, as well as what information it contains, the different types, and how you obtain one. After you finish reading this article, you’ll have the information needed to carefully and properly buy or sell a vehicle at an auto auction.
What is a Vehicle Title and Why Do You Need One?
A vehicle title is a document that shows proof of ownership or who owns the vehicle. It also includes 10 different pieces of information, which are the vehicle year, make, model, vehicle identification number (VIN number), title/document number, owner’s full name, owner’s address, previous owner’s name, liens, and remarks.
Are There Different Types of Vehicle Titles?
There are 8 types of vehicle titles. The original title is a blue form that is the original ownership document transferring a vehicle from the manufacturer to the dealer.
A duplicate title is a brown paper title. If for any reason your title is lost or damaged, you can fill out Form VTR-34 to apply for a certified copy of the original title. If there is a lien on the vehicle, you will need Form VTR-266 filled out by the lien-holder. If there are multiple names on the title, then all owners must sign the application.
Note: Make sure owners give you a business card with the lien holder’s name and the name of the agent authorized to sign for the lien holder.
A salvage title is a pink paper title that states whether or not a vehicle has been damaged beyond repair, because of an accident, fire, flood, or any instance where it would cost more to fix it than what its original value was.
A bonded title is given when there is no ownership of a vehicle, the original title was assigned incorrectly, or it is missing. This makes obtaining a title difficult because you can’t get it from the previous owner. If you’re going to apply for this title, you’ll have to provide a photo ID, statement of physical inspection, and a bill of sale, which states that the seller sold the vehicle for a certain amount of money. (This is like a receipt.) However, getting a bonded title can be pricey, as they start at $500.00.
A rebuilt salvage title is a title that was previously a salvage title, but has been rebuilt to state mandated standards in order for it to return to the road.
Registered to insurance titles are for vehicles that were repossessed, made an insurance claim, or could be salvaged. This could also be for vehicles considered a “total loss”.
Out-of-state titles go through the same process as other titles, but with different forms to fill out.
A non-repairable title is for a vehicle that cannot be repaired, rebuilt, or reconstructed. It cannot be used on public highways, and can only be used for parts or scrap metal.
Once you learn which vehicle title is needed, the next step will be to obtain it.
How Do I Obtain a Vehicle Title?
The process of obtaining a title depends on the type of title. For example, to receive an original title, the application must be filled out, ID and insurance must be presented, and you must contain a bill of sale.
If you’re trying to obtain a duplicate title, you have to find out who the original owner was, and apply by providing ID and an authorization form, which you can get from the county website or DMV website.
For a bonded title, you must receive an inspection from the fraud department, obtain a bond, then apply for the title.
Once you obtain the title, you’re going to need to make sure it is valid. In order to know if a vehicle title is valid, it should have the 5 following features:
- Watermark
- Raised seal
- Unique vehicle identification number (VIN #)
- Unique title number
- Owner’s information.
A fraudulent title will be missing one or more of these features.
You can also check the vehicle transfer website or request a Vehicle Titles and Registration (VTR) form from the DMV, which helps verify if it’s the most recent title.
What Happens If a Vehicle Title is Lost?
If a title is lost, the auto auction will have to reach out to the seller to apply for a duplicate title or get information from the previous owner. You can also visit your local DMV and complete the application for a certified copy of the title. However, all recorded owners must sign the form and provide photo identification at the time of application.
When is the Vehicle Title Due for Big Valley Auto Auction?
A dealer has 30 calendar days to bring in a vehicle’s title without being at risk of getting arbitrated. If you fail to bring in the title after 30 days, the buyer can file an arbitration for a late title and a $150.00 penalty will be added to the seller’s account. Once you bring in the title, you’ll want to double check and make sure all of the information is accurate.
Am I Prepared for an Auto Auction?
Similar to a birth certificate, vehicle titles are a good way to ensure you know exactly what you’re dealing with at an auto auction. If you believe someone who says they’re the president of Brazil, without asking for proof, then a vehicle title might not mean anything to you. However, if you prefer to validate a person’s identity, then a vehicle title is important to obtain.
Whether you’re new to auto auctions or you’re preparing for your next sale day, knowing what a vehicle title is and its importance will help you show up to an auto auction prepared.
Now that you know the importance of a vehicle title, learn what other factors you should know when finalizing your deal at Big Valley Auto Auction.
