Car Paperwork Terms with Definitions

Here are car paperwork terms and definitions you will come across when you arebuying and selling automobiles for profit.

Insurance card: Some states require you to have carpaperwork proving thatyou carry automobile insurance. If you ever get stopped by the Police then they will ask for this along with your registration and drivers license. If you don’t have one then you could be liable for a very stiff fine and/or confiscate your automobile.

Registration: This is one of the car paperwork terms that describes an annual tax that is paid to the state for being able to have your car on public roads. You’re supposed to keep this in your auto at all times. It shows all the particulars of your vehicle like make, model, year, VIN, weight and the registered owners name and address.

Safety Check: Some states require you to take your vehicle to a state certified Safety Check outlet once a year and have it inspected to make sure that all the things that supposedly make a vehicle safe to drive are working correctly. These might be: Your tires, brakes, lights, horn, body panels, etc. Its not a bad idea for places that rain or snow a lot and the salt the roads because a relatively new automobile can literally fall apart in front of your eyes due to the rust. The challenge is finding a place that doesn’t impose overbearing standards for this type of car paperwork.

Service Documentation: The car paperwork that shows repair descriptions, parts and costs, and all maintenance done for your vehicle. You should always keep these papers so you will have a history of your vehicle and know whats been done and when you need to do it next. This type of automobile paperwork is also great for re-sale value because then buyers can see confirm all the wonderful things you are telling them about the car you are selling.

Smog Certificate: Some states require you to have your vehicle go through a smog check once every couple years or whenever the car is sold. The burden is usually on the seller to get this for the buyer, but this varies by state. I would be very careful about buying any truck where the seller does not provide a Smog Certificate because in California your automobile can be considered a Gross Polluter by the state if it doesn’t pass and the repairs could cost you more than the auto is worth. Certain commercial vehicles, diesels and autos over 25 years old are exempt. You need to check with your states DMV department before buying to see what car paperwork is required.

Salvage Title: If a car has been "totaled" by an insurance company then they will call it a Salvage Vehicle and this is clearly stated on the title. It just means that the car was damaged beyond the point where it is worth repairing. Unless you're willing to sell a Salvage Title vehicle at a really cheap price, you might want to forego buying one of these because buyers will often freak when they see this on the title and will back out.

Title: Also known as the Certificate Of Ownership or Pink Slip, etc. This is a paper document given by the state government (in the U.S.) that has all the identifying numbers like: Make, Model, Year, VIN (Vehicle Identification Number), odometer reading, owners name and address shown throughout your automobile paperwork. Some states are going to paper-less titles to save costs. If you financed your vehicle then the Title will be held by the bank or whoever gave you the loan until you’ve paid off the car loan.

Vehicle History Report: For only $20.00 you can make sure the used vehicle you might be buying hasn't been formally titled as a salvage vehicle, wasn't a fleet vehicle, etc. and has a clear title by getting a vehicle history report.

Vehicle Identification Number: Also known as the VIN Number, or VIN, or VIN #. It’s a unique number given by the automobiles manufacturer that is stamped on the vehicle on the top of the dashboard on the drivers side. You can usually see it from the outside of the automobile looking through the windshield on the drivers side. You will also see the VIN listed on all your car paperwork.

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