Suppose you’re a vehicle owner with car insurance and drive your car regularly. In that case, you may already have your vehicle registration card or forms in your glovebox. If not, you should start doing so because driving your auto without proper state registration is illegal.
Carrying your vehicle registration card is legally required to be able to use public roads, which run everywhere. Having a new or pre-owned vehicle registered is a requirement for being able to drive your auto legally.
Another type of paperwork related to your vehicle that you legally need to drive is the car title, which demonstrates the car’s ownership.
What is a Car Title?
The first paperwork you will encounter when owning a car starts with the title. When you purchase your new or pre-owned car, you will be issued a vehicle title from a seller or dealer. The car title functions as the legal document which states the legal ownership of the vehicle.
A legal vehicle title for a new car can also be filed with the state’s DMV, Division of Motor Vehicles, or DMV Division of Motor Vehicles equivalent. Car titles for vehicles with loans list the lienholders as the auto owners until the auto loan is paid off. In addition to the owner’s name, the car title will also list the vehicle identification number (VIN), automaker and auto model, the type of car title, and the date the car title was issued.
What is Vehicle Registration?
A police officer will ask you for proof of vehicle registration and your driver’s license whenever they pull your car over. They do this regardless of the person because they must first check if the vehicle can even be on the road in the first place.
The car registration process occurs entirely at your state’s DMV, Division of Motor Vehicles, or DMV Division of Motor Vehicles equivalent.
A legal car’s registration proves that the car driver has the certification to drive legally, own or lease a vehicle, and pay their registration fees and taxes. A card and license plate are issued to the car driver and their vehicle after they get their car registered. A sticker on the car’s plate expires yearly, depending on your state, and must be renewed when the time comes.
You may sometimes see a car drive by with one of those temporary license plates. This is because they may have recently bought the car since some dealerships offer temporary registration for about a month after the purchase date.
You may already see the difference between vehicle registration and car title, which only certifies the vehicle’s owner.
How to Register Your Vehicle
The best way to learn how to register your car is by its practical application. While each state has its own DMV division of motor vehicles, the legal registering process that each driver must go through to ensure their car is registered and the vehicle registration is issued is consistent.
The first step is always to check your state-specific regulations regarding registering your car before diving in.
The Steps to Register Your Car are listed below.
1. Buy auto insurance for your vehicle
48 out of 50 states require their car drivers to carry a certain amount of auto insurance for their vehicle to be legally allowed to drive their car. You’ll be in charge of choosing the car insurance coverage type, auto insurance coverage limits, and car insurance deductibles so long as they are at least the minimum amount of auto insurance required by the state. Some drivers with multiple cars can add another vehicle to their car insurance policy.
2. Pass the mandatory inspections
Some states require incoming applicants for vehicle registration to have their vehicle safety features and emissions inspected.
3. Have all the necessary documents
Before starting the vehicle registration process, you must ensure you have all the proper documentation and paperwork to register your auto. This includes the car title, auto insurance form, drivers license, proof that you pay taxes and associated fees, the registration application form, and the bill of vehicle sale.
4. Complete registration form
This can be done online or in person. You’ll be asked to provide your car VIN, driver’s license, and auto plate numbers. A car registration fee ranging from $20 to $150 plus taxes, depending on the state and car type, must also be paid.
Now, your car is registered for use on the roads. The only thing left to do is receive your registration card, which you must carry in the vehicle as proof of your car being registered -usually in the glove box.
Types of Car Titles
A car title does two main things: list the legal owner of the vehicle and the condition of the car.
Different types of car titles identify whether or not the car has been in a car accident that can compromise the car’s functionality.
Here are these different motor vehicle titles and their differences:
- Clean title - Cars with no reported accidents, usually new ones, are given clean titles.
- Clear title - This type of title is issued to cars that list only one person as the legal owner. New cars leased or financed through a payment plan may not qualify for this title.
- Salvage title - Vehicles labeled a total loss are given a salvage title. This means the car’s functionality has been compromised and is no longer safe or legal.
- Rebuilt title - The only way to make a used car with a salvage title legally drivable again is to get it a rebuilt title. This would mean getting all the damages with the salvage car fixed. Please note that used cars of this nature are generally more complicated to insure legally. But at least they are legally certified to be road-safe again.
- Bonded title - Some cars may not have a definitive legal owner or record of ownership. They must be issued a bonded title and a bond equal to the car’s value.
- Dismantled title - This title is issued to a used car that is deemed totaled and will be taken apart.
- Junk Title - If a car can’t be repaired due to any damage, it will be issued a junk title. This is when the repair costs exceed the car value, but when the car can’t be repaired.
- Lemon title - A used car or any product can be labeled a lemon if they don’t function properly after the initial sale. A car can be issued a lemon title if it is new and something is wrong with it when it was bought.
- Odometer rollback title - Every car title includes the odometer amount. Setting it backward is illegal. If the odometer is tampered with, the car will be issued a title saying so.
How Much Does Car Title and Registration Cost?
Depending on the state, a car registration fee can run from $20 to $150 plus taxes.
In Illinois, the base car registration fee is $101 plus taxes. Senior drivers must only pay $24 plus taxes to register their cars. In contrast, electric car owners pay $35 for two-year registration and the correlated tax instead of the standard vehicle registration fees. At the same time, there are also fees associated with vehicle titles.
Unfortunately, Illinois has one of the highest fees for a vehicle title at $150 plus tax. That would cost just over $300 to title and register your car correctly. A car title fee can go from just over $10 to $100 plus tax. Illinois and Wisconsin stand out because their costs are over $150 plus tax.
The good news is that you usually only have to pay car title fees and taxes once. In some states, the title type can also affect the fee. A rebuilt title may cost more than a salvage title, for example.
Which Comes First: Car Title or Registration?
Because the vehicle title has such information as VIN, year, make, and model, all of these are essential for the vehicle registration. So, naturally, the vehicle title would come before the vehicle registration.
Vehicle ownership is significant for any state DMV or division of motor vehicles because it gives them an individual with whom to associate the vehicle. It also shows if the car is on a payment or leasing plan.
In any case, most states require that all applicants have proof of vehicle ownership, which is precisely a vehicle title.
Car Title, Registration, and Auto Loan Refinancing
Suppose you have a loan on your car. In that case, a car title and vehicle registration will be needed to refinance a loan if refinancing is required.
In the simplest of terms, refinancing a car is using an auto loan to pay off another auto loan. A new lender usually offers a new loan.
Many people refinance their loans to receive lower interest rates, consolidate debt, and overall more secure refinancing so they can legally keep their cars and eventually pay them off. This also means there are still existing debts and payments on the vehicle that last longer. There are some fees and costs associated with the refinance process. A title and registration for the car would be required for the new lender to give you a loan in the first place.
By now, you should be familiar with the registration process, vehicle registration’s purpose, and car titles. Ultimately, it all comes down to ownership and having a valid license plate with the state. For newer drivers, they would have to go through both.
Drivers with their vehicles are expected to maintain their vehicle registration annually. These are those stickers you place on your license plate. In Illinois, these expire on the driver’s birthday. Other states may set their renewal time differently. It’s always best to stay on top of those dates and mark them on your calendar.
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