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 are now going 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, and there is 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. Proving your ownership will also be 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 will 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 actually does an electronic car title work? Well, it’s done using blockchain technology, which is the same technology behind cryptocurrency. Blockchain will give value to vehicle titles, so there will be a blockchain signature code for the vehicle title. It will identify the vehicle, the VIN number, the owner, any lien holder, and all the vehicle’s information, such as year, make, model, and history. This will all be stored in the cloud on the blockchain, ensuring that the ownership record can follow the owner. 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 with the other person, whether they’re the buyer or the seller, and do the transaction electronically, with funds transferred and the vehicle switched over to your ownership instantly. Even dealerships can do this with customers who come in to buy a car. They can transfer the ownership instantly, so you won’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 dealing with vehicle titles and ownership much less bureaucratic. Look, one of the problems with vehicle titles is that when you get your car title, it's not something you use or update every year. Your registration and license plates are different; you update them every year. You renew them every year. Your driver's license stays in your wallet because you have to show it for things regularly, and you renew it every couple of years. Your car title, however, you get it, throw it in the drawer, and it’s done. The problem is that when you need it five or six years later—when you want to sell your car—who knows where it is because you haven’t used it actively? You may have to file for a lost title, fill out a form, and show your ID. Maybe your address is wrong. This creates problems with getting a title.

This digital transition will also prevent title fraud, where someone hides prior salvage information or lien details from future buyers. It will also stop titles from being washed from one state to another and lock down the record so that any future owner knows about liens or salvage history. If the vehicle’s report is stolen, that can be reported on the blockchain as well. Look forward to this simpler way of obtaining a title that can help you avoid the bureaucracy of dealing with the DMV and other agencies that make getting titles difficult.