A car title is a legal document that proves ownership of a vehicle. It is also known as an auto title or motor vehicle title, and it is issued by the state Department of Motor Vehicles (DMV) after a person buys a new or used car. The car title contains important information about the vehicle such as its make, model, year, and VIN number, as well as the name of the owner(s).
The car title serves several purposes: 1) It is proof of ownership - it shows that you have legal rights to drive and use your car; 2) It can be used as collateral for a loan or financing; 3) It allows you to sell, transfer, or register the vehicle with the DMV.
In some states, the car title also includes information about any liens on the vehicle (if there are any outstanding loans or debts attached to it). When a loan is paid off, the lienholder's name will be removed from the car title.
Overall, the car title is an important document that helps establish ownership and protects your rights as a car owner.