Do you know the difference between a car title versus registration? Find out more about these important documents, including cost and how to get them.
9 minutes
12.08.2023
A car’s title and registration are two separate yet equally important documents. The title legally states ownership of the vehicle in question, while the registration recognizes the car in the eyes of the state. While the title may switch hands as ownership of the car changes, drivers must regularly renew the vehicle’s registration to drive on public roads legally.
FINN incorporates registration into your monthly subscription fee in addition to insurance, depreciation, and maintenance. When you subscribe to a FINN vehicle, you don’t have to wait in line at your local Department of Motor Vehicles (DMV) or worry about how to handle the car’s title. Instead, you can enjoy the benefits of car ownership without the hassle.
A car title is a legal document that demonstrates proof of ownership of a particular vehicle as recognized by a specific state’s DMV. Transferring ownership of the car requires a certified copy of the title that passes from the seller to the buyer. The title includes:
Several types of car titles exist. Knowledge of these car title types can help you avoid insurance snafus and paying good money for a car that’s difficult to register.
Brand-new cars come from the factory with a clean title. However, the title’s status can change throughout the vehicle’s life to include any of the following:
If you purchase a car from a private party, these title terms are critical to informing your decision. Title types such as junk and salvage are extremely difficult to insure and register. These title designations can also tell you about the car’s history, especially lemon and flood titles.
Most people obtain a car title once they’ve paid off any outstanding loan on that vehicle. However, you may not be familiar with how the title changes hands and how you can request a certified copy of the title should you need one. Below are the steps involved in getting a car title:
Believe it or not, there are several benefits of having two names on a car title. You can typically find better insurance rates, improve the car’s resale value, and transfer ownership with less hassle if a car title includes two names. Remember that both names listed must sign the title to a subsequent buyer to transfer ownership.
A vehicle registration represents a document filed with your state’s Department of Motor Vehicles that grants you the legal right to drive on public roadways. Each state has its own registration laws and related fees. For most, car registrations must be renewed every one to two years. While a vehicle’s registration may list the owner as designated on the title, these two documents exist separate from one another entirely.
If you’re wondering what a car registration looks like, the following list represents the information typically found on a registration card or document:
When you register your car, you receive proof you’ve submitted the proper documents and the required fees. If you move out of state, you must register your vehicle within that state per local laws. Driving an unregistered car can result in fines and even jail time.
Car registrations typically expire every one to two years. Most state DMVs mail out renewal notices the month before the current registration’s expiration. You then have 30 days to register your vehicle. If you’re unsure about your state’s registration process and renewal procedures, visit your local DMV website for more information.
Car tags (or stickers) and registration reflect a similar meaning but are separate components of registering a car with your state of residence. The tags you receive demonstrate your vehicle registration is current and when the registration will expire. For example, many states issue a month and year sticker initially but only update the year sticker as you renew your registration.
In contrast, registration documents include the information necessary to demonstrate to local authorities that your car’s registration is current. The information on the registration should match a file at the local DMV, which a police officer can cross-reference to ensure you’re the legal owner of the vehicle in question. Registering your vehicle also proves that you’ve paid the necessary fees to contribute to road upkeep and other state transportation initiatives.
Registering your car doesn’t require specialized knowledge, such as how many miles a gallon of gas gets you in your particular vehicle. Instead, follow the steps below to register your car.
Most states require some form of car insurance before registering your vehicle. You can obtain car insurance quotes online or simply add your car to an existing policy if you have one.
Local laws dictate how you can register your vehicle, depending on whether you need to register for the first time or just renew. If you received a temporary license plate from the dealership, register your car before it expires to avoid late fees.
Save yourself time by gathering the following before you begin registering your vehicle:
You may be required to submit the documents above during the registration process. If you are leasing or financing the car, the dealership will send a copy of the title and the bill of sale.
A Department of Motor Vehicles (or equivalent) representative will guide you through the registration process, including the application. At this stage, you’ll identify any modifications to the car.
One of the final steps involves paying any fees based on where you live and what type of vehicle you’re registering. You’ll then place the license plates you receive on your vehicle, with any stickers applied in the appropriate pattern. Keep a copy of the registration with you in case you get pulled over.
Administrative fees surrounding car titles and registrations vary from state to state. The National Conference of State Legislatures maintains a list of vehicle registration fees by state, but it’s best to check with your local DMV for updated pricing. Most registration fees are based on a vehicle’s weight, age, value, or any combination of the three, although some states simply charge a flat fee.
You can typically pay for your car inspection cost, registration, and title with a credit card, similar to using a credit card for a down payment on a car. Most DMV websites list accepted payment methods and any associated fees. You can also call ahead to clarify payment before visiting the DMV.
A car registration fee represents the administrative fee you pay each time you register your car. Registration fees are typically highest for brand-new vehicles.
You can register a car under a different name than what appears on the title. Leased or financed vehicles are registered by individuals other than the owner as listed on the title, albeit with notation outlining the relationship between the registered owner and the titleholder.
No, registering your vehicle doesn’t mean you own it. You can (and must) register a car you lease or finance without owning the vehicle outright.
A car’s title comes first, as it’s issued with the vehicle as it leaves the factory. Any subsequent owners, including dealerships or individuals, must then register the car.
Knowing the difference between a car title and registration can inform your experience as a car owner. Receiving the title to your car can represent a milestone in paying off your loan. Registering your car every one or two years can be a hassle, but it’s the cost of driving on the public roads in your state.
If you want to skip the long lines and hassle of titling and registering your car, subscribe to a FINN vehicle. Your monthly subscription includes registration, insurance, depreciation, and maintenance, so you can enjoy everything else about a car you pick out specifically from FINN’s extensive fleet. FINN can also deliver your vehicle straight to your door for a convenient, flexible driving solution.
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