Motor Vehicle Title Application Process – Consumer and Dealer

Today we’re going to look at the process, paperwork, and documents for applying for a motor vehicle title. We’re going to use an example from the state of New Jersey. In addition to looking at the process, we’re also going to compare that process from a consumer or civilian to a licensed dealership. And just give you a little sneak peek, advance notice. Here’s the document for a consumer, and here’s a document for a dealer. Look how much simpler the dealer application for title is, and the reason why is because dealers have some additional privileges and authority for titling that an individual may not have. But it’s important to know what the requirements are for obtaining a motor vehicle title and what can make the process easier. This little barcode in the lower right-hand corner gives you a hint of how you might be able to do some things with this form to make your process easier. So let’s take a look and see what methods or what suggestions you can use to make the process easier.

What is a Vehicle Title?
First of all, what are we talking about with a vehicle title? Well, a vehicle title is a legal government document. It’s a certificate that declares the ownership of a motor vehicle. Here’s physically what one looks like. It’s a certificate with scroll work. It has watermarks. It’s got a lot of legal aspects and features, just like you might find on currency, driver’s license, or birth certificate, to prevent tampering, to prevent forgery, to prevent false documents being prepared. Because the existence of that title and the name of the person on that title is evidence of the ownership of the vehicle. So if you imagine the vehicle having a certain value, let’s say even a modest vehicle that’s worth eight thousand dollars, that title represents the ownership of that eight thousand dollar value. So in effect, a vehicle title is kind of like an eight thousand dollar bill. It’s a currency because it proves the ownership. Whoever has that title with their name on it is in effect benefited from the asset of the value of the vehicle. That being said, it gives you some insight into why the titling process is as formal and specific as it is. They don’t just hand out titles to somebody upon request. You have to have the right documentation.

The Title Application Process
So now that we understand what goes into a vehicle title, let’s take a look at what the process is for obtaining one. Here is the title application for the state of New Jersey, and it says very simply at the top, “Use this form to apply for a New Jersey title. The applicant, the person signing it, must be the owner, lienholder, and authorized representative. You submit this application and all supporting documents.” And that’s going to be important because just filling out this application by itself isn’t enough. You have to have supporting documents, and we’ll talk about that. And you can submit it in person or you can mail it in. All applicants and this documents must provide proper identification. So they need to know that the name of the person and that the identity is correct. They don’t want to be giving a title to somebody who doesn’t exist as a person or maybe is not eligible to have a title. In addition, the supporting documents must be original unless they are court documents. They can be certified copies.

Types of Title Applications
Step one, what type of title are we doing? Is it a first-time title, initial? Is it a duplicate, meaning that you had a title document and it was lost? Maybe it’s a replacement or corrected title, meaning there was some error or something wrong with the last title that you need to correct. And then if it’s a vessel, meaning a boat, you click this box. If you’re adding or removing a lien, there are designations for those actions too. So this first tells the DMV what you’re trying to do. Are you trying to get a new title, a replacement, duplicate, corrected, that kind of thing?

Vehicle Identification
First section that is important is the identification of the vehicle. What car are we talking about, or boat in this side section. The most important thing is the VIN or vehicle identification number. That is the ultimate identity of a vehicle. It differentiates one 2018 Toyota Camry from another 2018 Toyota Camry. They will have different serial numbers or VIN numbers, and that’s the first thing. If you notice, the first piece of information that’s asked for is the VIN number. They don’t care about your name; the make, model, VIN number is the first thing they want to know, and that’s important. Now, every vehicle has a VIN or vehicle identification number. If it’s older than a 1981 vehicle, that VIN number could have any one of a number of different formats. However, in 1981 and newer, all vehicles were issued a standard 17-digit VIN. And that VIN not only had 17 digits but it was in a certain format. The first letter or character designated the country of origin: 1 for the U.S., 2 for Canada, 3 for Mexico, J for Japan, W for Germany, etc. The second digit is the manufacturer: G for General Motors, F for Ford, T for Toyota, H for Honda, etc. So by looking at a vehicle identification number, you can tell a lot about what vehicle it is just from the first one or two digits. So that number goes here. Below that, there’s a place for a license plate number if it has one. Then you’re going to have the year, make, model, color, weight if it’s a truck. We’ll zoom in a little bit on this. If it’s a correction, the correction needed goes here. Odometer information, this is important. Vehicle history is monitored in terms of the reading of the odometer. How many miles has that vehicle traveled? So at any transfer and other events as well, the odometer reading is captured, and that reading will go in this box.

Owner Information
Step three is, who’s the owner? Who do you want listed as the owner of the title? Could be you, could be a company. Put your name here, put your phone number there. If you have a driver’s license or a business number, that goes in the next box. You have address, city, state, and zip. If there are two owners, the co-owner will go here and their driver’s license number. The next two sections are for if you’re adding or removing a lien, and if you are adding a lien, you put the lienholder’s name, business address, phone number, city, state, zip. If the person who is preparing this is a representative of the owner, like the CEO of a company, an accountant, a bookkeeper, maybe an attorney, they will put their information here as a representative.

Duplicate Titles
Okay, the next section is for duplicate titles. This lists the required documentation you need. If it’s an individual, you will need a valid photo ID. You will need the New Jersey registration card and a lien release if there was a lien. It’s very important you have those things. In addition, if you’re mailing in this document, you have to put the address where you want the document mailed when it’s done. If you go in person, it’s not a problem; they can hand it to you. But if you’re mailing it in, you have to put the address where you want that title sent, and also the format: U.S. Mail, FedEx, UPS, how you want it sent.

Signing the Application
Once you have all of this information filled into this form, you have to sign it. And if you notice, right above the signature, it says, “I certify the above statements are true,” and if they’re false, it’s a crime because they don’t want you putting false information on a legal title application. Now, if you remember, we’re talking about one particular state of New Jersey. Every state has a different titling division. In New Jersey, it’s called the Motor Vehicle Commission. Some states call it the Department of Motor Vehicles. Some states call it the Department of Transportation. The form and the document is going to be very, very similar from one state to another. It’ll have the same boxes; it might be jumbled around in a different order. And once you sign it and submit it, the titling division will process it, and they’re going to look at all the requirements to make sure they’re met. They have a section here where they’re going to put their own notes: NMVTIS checked, if you notice, is right here. That stands for National Motor Vehicle Title Information System, and that’s a federal database where the government can look up vehicles to make sure they’re not stolen, they don’t have any liens, they’re not a salvage, they don’t have parts only or junk designation, and they can put their other notes for the transaction here.

Instructions and Fees
The good thing about New Jersey, many states have this, is they have an attached page which has instructions. Step one, it tells you, this whole box are the instructions for that one little section. Step one, what you have to have. Duplicate titles are issued if the current New Jersey title has been lost or stolen. What that tells you is, if the last title was not from New Jersey, you cannot apply for a New Jersey title. Same thing in any state. If the last title came from elsewhere, you have to apply for a duplicate in that other state. Now, for a new state title, different story. In-state title transfers require only submission of the previous New Jersey title. But if you have an out-of-state title, there’s going to be more requirements, probably an inspection, maybe some other verifications. What’s the fee? In New Jersey, the title fee is $60. That’s at the high end of the range. Many states have title fees that are $5, $10, $15, $20, $25, not that much. New Jersey is at the higher end of the range. I think there’s only four states that have title fees above $50. They also have a fee of $25 if you’re adding a lien. What else do they tell you? The vehicle information must match your signed and executed title documents. Well, what does that mean? Well, if you’re applying for a new title on a vehicle, you can’t just use this form. You have to bring them the old title from the last owner that they signed on the back. If you don’t have that last owner title, you can’t apply for a new title because they don’t know that you are the proper owner. The rest of the information is instructions about the form. You must sign this application and provide proof of ownership. You have to have photo ID. Mail-in applications, it tells you where to send it. And for signatures, it says blue or black ink only. Can’t sign it in a red pen or magic marker. You have to use certain types of ink. So if you follow their instructions, you’ll get a title.

Dealer Applications
Now, at the beginning of the video, you remembered that we also compared it with a dealer application. Well, look what dealers have. There’s hardly anywhere near the number of blank spaces. They put the name of the dealership, an address, their motor vehicle dealer identification number. This is what makes it possible for a dealer to have a simpler form. They have a dealer number that they can enter into the form, which gives them some privilege and authority to do more of the titling process. The vehicle information, you still need make and model and VIN number. But compare that with on the other form: make, model, VIN number. For vehicle information, we’ll look at this form: VIN number, license plate, year, make, model, color, weight, body, axles, many more pieces of information because on a new vehicle that information can be determined from the VIN number. You notice they ask a lot of questions about EPA because many states have requirements for managing environmental and mileage ratings on vehicles. If it’s a luxury vehicle over a certain dollar amount, some states have a luxury tax that you have to pay, and that has to be determined. Other than that, you answer those questions yes or no. You put the sales price, you sign it, date it, they’re done. So as you can see, for a dealer, a licensed automotive retailer, the process is much simpler than it is for a civilian trying to get a title because the dealer has more licensed authority. They have bonds, they have training requirements to make sure that they’re doing the title the right way. If you’re an individual consumer, they have to double, triple check everything to make sure that it’s done properly because you may only do this once or twice in your life. The dealer probably does a hundred of these a month. So there’s some simplicity offered for the dealership that’s not afforded to an ordinary consumer.

Conclusion
This is a good example of one state’s title process. Your state will probably have a different form number than this. This form has a number; it’s R621. Every state has a different form number. Believe it or not, about half the states, their form is called MV1. It’s different for all the states, but it’s called MV1, Motor Vehicle 1, because the primary thing you do at the DMV is get a title. That’s what they’re there for. So hopefully, this overview gives you some insight into what goes into getting a title for a motor vehicle. We have additional videos on other documents for other states, but at least you have an understanding of what you’re up against when it comes time to deal with the DMV to get a vehicle title in your name.

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