Your car title is one of the most important pieces of documentation about your vehicle. It not only proves ownership, but also is attached to your car's history. It helps to know some of the common problems you may encounter with your car title.
Improperly Transferred Title
When you buy a car, make sure that the seller properly transfers the title to you. Otherwise, when the times comes for you to sell the car, you will probably need to get a court order to handle the transfer.
You can reapply for a lost car title. State motor vehicle offices keep records of titles, which can be retrieved using the car's vehicle identification number.
Car title fraud occurs when the previous owner, usually a dealer, cleans the title history to hide problems with the vehicle.
High Title Loan Rates
Those who sell car title loans often offer interest rates that are much higher than those of even the highest-rate credit cards. This can make reclaiming your title an arduous task.
Rolling Over and Repossession
Along with high interest rates, many car title loans have a 30-day rollover period. After that, the lender can repossess your car.