The Expert Podcast

So, can you get an electronic or digital copy of your car title? Why can't you just download a car title or print one out on your phone? Many other types of documents now go mobile, like boarding passes and passports. So why not a car title? Well, part of it is because vehicle titling is done at the state level. There's not one national car title; however, there is some progress towards that goal. In the state of California, their DMV is starting to digitize car titles so that you no longer need a paper title. You don't have to jump through hoops with the DMV. It may take them some time to do this, but it sets the expectation that paper vehicle titles are a thing of the past. You won't have to worry about filling out forms or dealing with DMV bureaucracy. You can do everything electronically, right on your phone, which will make vehicle titling much easier and also make proving your ownership easier. Even if you have a lien on the vehicle, your ownership can be documented and evidenced with some type of QR code or electronic signature on your phone.

The question is going to be: how do they migrate that over? California is leading the transition to this, and a couple of other states are also working on it. Virginia is one. You're going to see more progress with states in the Northeast. New Hampshire and Vermont have both signed contracts with some companies to switch over their car titles.

So, how does an electronic car title work? Well, it’s done using blockchain technology. This is the same technology that puts value behind cryptocurrency, and it will put value behind vehicle titles. There will be a blockchain signature code for that vehicle title. It’ll identify the vehicle, the VIN number, the owner, if there's a lien holder, and all the vehicle information like year, make, model, and history will all be stored in the cloud in a blockchain. The ownership record can follow the owner, and if there's a transfer, that can also be done electronically. You won't have to get papers notarized or signed. You can do it all right on your phone. You can connect to the other person—the buyer or the seller—and do the transaction electronically with a funds transfer, and have the vehicle switched over to your ownership instantly. Even dealerships can do this with customers that come in to buy a car. They can transfer the ownership instantly, so you don’t have to wait 30, 45 days, or two months to get the title and plates from your vehicle purchase.

According to what California does, they will have digital wallets to hold and transfer token car titles, with the DMV acting as a middleman to oversee the operations. This is a game changer! It will make vehicle titles and dealing with vehicle ownership much less bureaucratic.

Look, one of the problems with vehicle titles is that when you have your car title, it’s not something you use or update every year. Your registration and license plates—that’s a different story. You update those every year, renew them every year. Your driver's license stays in your wallet because you have to show it for things on a regular basis and renew it every couple of years. Your car title? You get it, throw it in the drawer, and it's done. The problem is that now, when you need it five years or six years later—when you want to sell your car—who knows where it is? Because you haven't used it actively, you have to file for a lost title, fill out a form, and show your ID. Maybe you moved, and your address is wrong. This creates problems with getting a title.

This will also prevent title fraud, where somebody hides prior salvage information or hides lien information from future buyers. It will keep titles from being washed from one state to another and lock down the record so that any future owner knows about liens, salvage, and if the vehicle is reported as stolen. That can be reported on the blockchain as well.

So, look forward to this simpler way of getting a title that can help you avoid the bureaucracy of dealing with the DMV and all the other agencies that make getting titles difficult.