Vehicle title
Encyclopedia
In the United States, the certificate of title for a vehicle (also known as a car title or pink slip; or pinks in the plural) is a legal form, establishing a person or business as the legal owner
of a vehicle
. Vehicle titles in the U.S. are commonly issued by the state DMV
.
While not standardized from state to state, the certificate of title normally specifies:
When a vehicle is financed, the certificate of title is normally held by the lender, who must release it to the purchaser once the balance is paid off. In some states, the transferred title is sent directly to that individual, but the name of the lender or lienholder appears on the title as well. In order to release the lien upon full payment, the lender sends a notarized release or other complementary document to the individual.
When a car is sold from one owner to another, the title must be transferred to the new owner. This is achieved by requesting approval by the state DMV
.
The name "pink slip" is a reference to California certificates of titles before 1988, when they were pink; current California titles have broad vertical stripes of teal, yellow, and pink with a green border; while Illinois titles are blue, pink, and blue with a purple border; and Pennsylvania titles are blue with a blue border.
Many illegal street races of the 1950's, glorified in movies, featured racing for vehicle titles, henceforth the popularity of the term "racing for pink slips," and the 2005-08 Speed series Pinks
was developed from it.
In the United Kingdom, there is not an equivalent of a vehicle title. Instead, there is a document known as the 'vehicle registration document', and is issued by the Driver and Vehicle Licensing Agency
(DVLA). The current version has the reference number V5C. Prior to computerisation, the title document was the 'log book', and this term is sometimes still used to describe the V5C.
The V5 document records who the Registered Keeper of the vehicle is; it does not establish legal ownership of the vehicle.
is paid off. Car title loans are marked by high interest
rates, a short time to repay the loan, and the loan amount is usually less than the car's monetary worth. Also the borrower risks losing the car to the lender if the loan is not paid back. These type of loans are marketed as small emergency loans.
Title (property)
Title is a legal term for a bundle of rights in a piece of property in which a party may own either a legal interest or an equitable interest. The rights in the bundle may be separated and held by different parties. It may also refer to a formal document that serves as evidence of ownership...
of a vehicle
Vehicle
A vehicle is a device that is designed or used to transport people or cargo. Most often vehicles are manufactured, such as bicycles, cars, motorcycles, trains, ships, boats, and aircraft....
. Vehicle titles in the U.S. are commonly issued by the state DMV
Department of Motor Vehicles
In the United States of America, a Department of Motor Vehicles is a state-level government agency that administers vehicle registration and driver licensing. Similar departments exist in Canada...
.
While not standardized from state to state, the certificate of title normally specifies:
- Identifying information about the vehicle, normally at minimum its vehicle identification numberVehicle identification numberA Vehicle Identification Number, commonly abbreviated to VIN, is a unique serial number used by the automotive industry to identify individual motor vehicles. VINs were first used in 1954...
, make, and year of manufacture. - The license plate number.
- Technical information about the vehicle to define its taxation regime, e.g., its gross vehicle weight, motive power, and purchase price when newSuggested retail priceThe manufacturer's suggested retail price , list price or recommended retail price of a product is the price which the manufacturer recommends that the retailer sell the product. The intention was to help to standardise prices among locations...
. - The name and address of the purchaser or "registered owner" who would normally possess and use it.
- If money is owed on the vehicle, the name of the lineholder or "legal owner" to whom this money is owed.
When a vehicle is financed, the certificate of title is normally held by the lender, who must release it to the purchaser once the balance is paid off. In some states, the transferred title is sent directly to that individual, but the name of the lender or lienholder appears on the title as well. In order to release the lien upon full payment, the lender sends a notarized release or other complementary document to the individual.
When a car is sold from one owner to another, the title must be transferred to the new owner. This is achieved by requesting approval by the state DMV
Department of Motor Vehicles
In the United States of America, a Department of Motor Vehicles is a state-level government agency that administers vehicle registration and driver licensing. Similar departments exist in Canada...
.
The name "pink slip" is a reference to California certificates of titles before 1988, when they were pink; current California titles have broad vertical stripes of teal, yellow, and pink with a green border; while Illinois titles are blue, pink, and blue with a purple border; and Pennsylvania titles are blue with a blue border.
Many illegal street races of the 1950's, glorified in movies, featured racing for vehicle titles, henceforth the popularity of the term "racing for pink slips," and the 2005-08 Speed series Pinks
Pinks
Pinks is a franchise series of television programs on Speed Channel based on illegal street racing, held at legal closed drag strips with a theme around drag racing. The original aired from 2005 to 2008, with the spinoff Pinks: All Out following in 2006...
was developed from it.
In the United Kingdom, there is not an equivalent of a vehicle title. Instead, there is a document known as the 'vehicle registration document', and is issued by the Driver and Vehicle Licensing Agency
Driver and Vehicle Licensing Agency
The Driver and Vehicle Licensing Agency is the organisation of the UK Government responsible for maintaining a database of drivers and a database of vehicles in Great Britain; its counterpart in Northern Ireland is the Driver & Vehicle Agency...
(DVLA). The current version has the reference number V5C. Prior to computerisation, the title document was the 'log book', and this term is sometimes still used to describe the V5C.
The V5 document records who the Registered Keeper of the vehicle is; it does not establish legal ownership of the vehicle.
Car title loans
Vehicle titles are also used for car title loans, where a lender will loan the car's owner money in return for keeping the car title until the debtDebt
A debt is an obligation owed by one party to a second party, the creditor; usually this refers to assets granted by the creditor to the debtor, but the term can also be used metaphorically to cover moral obligations and other interactions not based on economic value.A debt is created when a...
is paid off. Car title loans are marked by high interest
Interest
Interest is a fee paid by a borrower of assets to the owner as a form of compensation for the use of the assets. It is most commonly the price paid for the use of borrowed money, or money earned by deposited funds....
rates, a short time to repay the loan, and the loan amount is usually less than the car's monetary worth. Also the borrower risks losing the car to the lender if the loan is not paid back. These type of loans are marketed as small emergency loans.