A vehicle title search in Alabama is a vital step when purchasing a used vehicle. It helps protect buyers from fraud, legal complications and costly mistakes. Here's why it's important:
- Confirms Legal Ownership: May aid in determining the legal owner of the vehicle.
- Identifies Liens: Shows if there are any outstanding liens on the vehicle. If a lien exists and isn’t cleared, the lienholder (often a bank or finance company) may have a claim to the car even after it is sold. The new owner may be held responsible for the outstanding debt incurred against the vehicle by the previous owner.
- Uncovers Title Brands: A title brand is an indicator of a cataclysmic event in the vehicle’s past typically prompting the insurance company to declare a vehicle as a total loss. Some of the more popular title brands include: salvage, rebuilt, flood or junk title. These designations reveal serious past damages or loss, affecting the car’s value, safety, reliability and insurability.
- Protects Against Fraud:
- Helps detect odometer fraud and VIN cloning, where a stolen car is given a fake identity.
- Title histories often show mileage records and past title activity helping you better understand how extensively it was used and identify any irregularity that may be indicative of fraud.
- Verifies Theft History: Identifies whether the vehicle has ever been reported stolen. A theft indicator protects potential buyers from unknowingly purchasing stolen property.
- Ensures Compliance with Alabama Law:
- Alabama law requires vehicles to have a valid title for ownership transfer, registration, and insurance.
- A title search ensures there are no legal obstacles to registering the vehicle in your name.
- Provides a Clear Vehicle History: Many title searches include accident records, ownership changes, and service history, helping buyers assess the vehicle's condition and reliability.
