Have you ever wondered if you will be caught in a situation where you will have to prove that you are the legal owner of your car? It may seem like a rare case, but the chances are not negligible. If someone reports that your car was stolen or claims that they have illegally taken possession of your car, you will have to prove ownership of your vehicle. So how do you plan to test it? Will your words be enough to show that the car you are driving is legally yours? Well, no.
To prove that you are the legal owner of your car, you will need to show the authorities the car’s title. It is one of the most important vehicle documents to keep in a safe place. A car title is the only document that proves legal ownership of the vehicle. Incorrect placement of the document can create a troublesome situation for you.
The DMV issues this document. There are a variety of different types of car titles and each of them is for a unique case.
A clear title is for cars that have not suffered serious damage in the past and are free of liens. It is the type of title that is desirable. In some cases, vehicles with a clear title are the only ones that qualify for an auto loan.
A car that has a salvage title can never qualify for a clear title. Cars with a rough history receive a salvage title. They are reported as stolen or have undergone significant repair, the cost of which exceeds 60% of the actual value of the car. After extensive repair, these cars may become roadworthy, but there is no chance that these cars will get a clear title.
When there are serious problems with a vehicle’s original documentation, it qualifies for a consolidated title. The seal of the consolidated title remains on the document for a minimum of three years and a maximum of five years. When the discrepancies in the original documentation are significant enough, a security bond is purchased, the value of which is equal to the cost of the vehicle. The security bond serves as a form of security in the event that someone else makes a valid claim on the vehicle.
A car receives a lemon tag when a significant number of its components are defective and make the vehicle unsafe. If even after repair these components do not work as they should, the car receives a lemon title.
If a car is working properly and all its components are working, as they should be, but have undergone a thorough repair to become operational; qualifies for the rebuilt car title. These vehicles are roadworthy as they work properly.
A car that has suffered irreparable damage and is not suitable for use on the road is the one that receives the dismantled title. These cars are not roadworthy and only serve as a source of scrap for other applications.
When the cost of repairing a car exceeds 75% of its actual value, it qualifies for junk title. Cars with a junk title are not roadworthy, and in many states, a junk title is the same as a salvage title.
Water damage title
A water damage title is for cars that have been damaged during a thunderstorm or flood. It is possible to repair damaged mechanical and electronic components, but sometimes the damage can create problems in the future.
Odometer Reversal Title
Many car salesmen play the trick of rolling back the odometer before selling the car. It hides the high mileage, which can reduce the value of the car. Only a professional and certified mechanic can detect the problem. Once the odometer reversal is detected, the car will receive an odometer reversal title.