Vehicle Car Title

The car title (also known as a vehicle title or pink slip; or pinks in the plural) is a legal form, establishing a person or business as the legal owner of a vehicle. Vehicle titles in the U.S. are commonly issued by the state DMV.

While not standardized from state to state, the certificate of title normally specifies:

• Identifying information about the vehicle, normally at minimum its vehicle identification number, make, and year of manufacture.
• The license plate number.
• Technical information about the vehicle to define its taxation regime, e.g., its gross vehicle weight, motive power, and purchase price when new.
• The name and address of the purchaser or “registered owner” who would normally possess and use it.
• If money is owed on the vehicle, the name of the lineholder or “legal owner” to whom this money is owed.

When a vehicle is financed, the certificate of title is normally held by the lender, who must release it to the purchaser once the balance is paid off. In some states, the transferred title is sent directly to that individual, but the name of the lender or lienholder appears on the title as well. In order to release the lien upon full payment, the lender sends a notarized release or other complementary document to the individual.

When a car is sold from one owner to another, the title must be transferred to the new owner. This is achieved by requesting approval by the state DMV.

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