When you purchase a vehicle from a dealer or even a private party, you should receive a certificate of ownership, also known as the vehicle’s title. Car titles are official documents that prove ownership of property, in this case cars. Vehicle titles are issued by a state’s Department of Motor Vehicles. Every time you purchase a vehicle, you should do some research and check the history of the car title. Here’s what you need to know.

The Certificate Itself

An authentic title is issued by a state transportation department and normally includes the state’s raised seal. All titles include a vehicle identification number (VIN) that is unique to an individual car or truck. You should make sure the VIN on the title matches the vehicle. You can check the vehicle’s VIN. It is usually printed on a strip on the dashboard, engine, or on the inside of the door jamb.

Check The Mileage

If you are buying a vehicle, check the mileage on the title with the odometer on the vehicle. You can check the history of the vehicle and find the date of the last sale of the car. This is especially important for used vehicles. When checking the odometer, make sure that it does not appear to have been tampered with.

Look For Any Damage

Cars that have been damaged will have that information included in their title history. If a car has been stolen or involved in fraud, that would also be noted on the title. Investigate the car or truck for any signs of damage not indicated on the title. If a title is labeled “Salvage,” then the vehicle has been involved in an accident. This could be a red flag. Vehicles labeled “Salvage” decrease in value compared to the same models without that label. If you are buying a car and the seller has “lost” the car title history, recognize that it may be to cover up a “Salvage” title.

Using Your Car Title For A Loan

A car title can be used as collateral to take out a loan. Embassy Loans of Florida has helped thousands of customers use their vehicles to access emergency cash. The process is very quick, unlike traditional loans. Borrowers can receive their money usually within an hour of applying for the loan. Since a vehicle is used as collateral, there is no need for credit checks making car title loans a great choice for those who have less than stellar credit histories.