How to Transfer a Car Title

Whether you’re buying, selling, gifting or inheriting a vehicle, there may be a need to transfer a car title. A car title proves vehicle ownership and transferring it properly can help you stay compliant with the laws in your state.

Below, we’ll take a closer look at what a car title is, when it needs to be transferred and how to complete the transfer process with ease.

What is a car title?

A car title is a legal document issued by the state’s Department of Motor Vehicles (DMV) that serves as official proof of ownership and contains important information about the vehicle.

The name on the car title establishes ownership of the car. While car title documentation may vary by state, most include the vehicle identification number (VIN), make and model details and an odometer reading to indicate the number of miles on the car when the title is produced. A car title document also includes a blank assignment of title form, which is filled out by the vehicle’s buyer and seller when and if the vehicle is sold or the title is transferred.¹

When do you need to transfer a car title?

There are several situations when it is necessary to transfer the title for a car, such as:

Selling or buying a car

When you sell or buy a vehicle, the car title is an essential part of the process, as it serves as proof of ownership. A title must be transferred whether a car is purchased through a dealership or from a private party.

Gifting or donating a car

If you decide to gift or donate your vehicle to someone else, you’ll need to transfer the title to the recipient. The process will depend on your state, but it may require a notary to complete the paperwork.²

Inheriting a vehicle

Even though it’s not considered a commercial transaction, the car title will need to be transferred to you if you inherit a vehicle. Each state has its own specific requirements for this scenario. Contact your local DMV to find out your state’s requirements.

Paying off a car loan

Once you repay your auto loan or lease, you’ll be required to transfer the title to yourself. This will remove the lender information and confirm that you now own the car outright.

Moving to a new state

When you move to a new state, you’ll typically have around 30 days or longer to update the title, with some states requiring immediate registration.³ The regulations of the new state will dictate the actual process and needed paperwork but expect to fill out some forms and submit required documentation, such as proof of a safety inspection.

Note that not all states have the same requirements for car titles, so it’s important to familiarize yourself with the laws of your new state before you move.⁴

How do you transfer a car title?

The car title transfer process depends on whether a dealership or private party is involved in the transaction. Additionally, guidelines may vary from state to state, so it’s always a good idea to check with your local DMV.

Dealership

If you work with a dealership, they’ll handle the transfer on your behalf. They’ll work with you to finalize the paperwork and help ensure you have the right documents in order. If you have an auto loan, they’ll send the title to the lender.

You can expect the dealership to add the necessary fees for your car title and registration to the final purchase price of the car. In most cases, you won’t need to visit the DMV to complete the transfer.⁵

Private party

In a private party transaction, the buyer is responsible for the car title transfer. While your state will determine the exact process, it will likely involve two steps. First, the seller will be required to sign the title to release ownership of the vehicle. Then, the buyer will have to bring the signed title to the DMV. From there, the DMV will issue a new title and registration.⁶

Depending on your state, you may have to provide additional documents, such as a bill of sale, transfer of ownership form or odometer mileage statement. Also, some states allow for online title transfers, saving you a trip to the DMV. Check with your local DMV for the most up-to-date information on how to transfer a car title.

What happens if there’s a lien on the title?

A lien is a legal claim to property. If you’re financing your vehicle, the lienholder or lender places a lien on the car’s title until the loan is paid off. Once you pay off the car in full, the lender will send you the lien release letter so you can get a new title in your name. Timing varies from state to state, but it may take up to 40 days to receive a lien release letter.⁷ Once received, you can submit paperwork to the DMV to get a new title. In some states, the new title paperwork will be automatically mailed to you. In other states, you may need to contact or visit the DMV to complete the process.

If you want to transfer the title, you’ll need to pay the loan off, trade in the car at a dealership, or sell it to a private owner who is willing to pay off the lien or loan.

Tips to help make the title transfer smoother

There are several ways to streamline the title transfer and reduce the risk of hiccups along the way.

Double-check all paperwork before submitting

Before you submit the final paperwork for the title transfer, review all your information and signatures carefully. Errors or inaccuracies may delay the process.

Bring a valid ID and any required documents

Documentation requirements for title transfers vary by state. Typically, you’ll need the current title, a government-issued ID and proof of insurance. You may also be asked for a bill of sale and additional paperwork like the vehicle inspection report or odometer form. Visit your state’s DMV website ahead of time to ensure you have all the appropriate documents on hand.

Keep a bill of sale for your records

It’s best to hold onto all the documents associated with your car title transfer, including the bill of sale. Not only can they provide evidence of vehicle ownership, but they might also come in handy in the event of any disputes or complications down the road.

Notify your insurance provider of the ownership change

Once you complete the car title transfer, let your car insurance company know so they can update the policy with the correct information.

Wrap up the paperwork for a smooth handoff

Transferring a car title is an important part of vehicle ownership, regardless of whether you use a dealership or work with a private party. If you follow state-specific requirements and plan accordingly, you could most likely complete the process with ease and ensure you’re compliant with the laws in your state.

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Sources:

1. https://www.caranddriver.com/research/a32781807/what-is-a-car-title/
   
2. https://www.bankrate.com/loans/auto-loans/how-to-give-car-as-gift/#three
   
3. https://www.bmv.ohio.gov/titles-new.aspx#:~:text=The%20buyer%20will%20pay%20sales,late%20fee%20will%20be%20assessed
   4,5,6, https://www.thezebra.com/resources/driving/how-to-transfer-your-car-title/
   7 https://www.toyotafinancial.com/us/en/planning_tools/faq/loan_payoff_and_title_lien_release/Once_my_loan_is_paid_off_how_long_will_it_take_to_receive_my_vehicle_title_lien_release.html