Taylor Scott
In Illinois, a vehicle title is a document that serves as proof of ownership and includes information such as the vehicle's identification number. Typically, when an individual purchases a vehicle, they receive the title in the mail within two to six weeks. The process of obtaining a car title varies depending on whether an individual has paid off their loan or is still making payments. If an individual has a loan, the lender usually holds onto the title until the loan is paid off, at which point the lien-holder is removed, and the individual's name is added as the owner. In some states, the driver is allowed to hold the title while paying off the loan, and in these cases, the lien-holder's name will still appear on the title as the legal owner. In Illinois, if an individual sells their car to a dealership, the dealer is not required to change the title to their name, and the vehicle remains in the seller's name until it is sold to a private individual.
| Characteristics | Values |
|---|---|
| What is a car title? | A vehicle's title serves as proof of ownership and has important information such as the vehicle's identification number. |
| Who holds the title? | In some states, the bank or lender holds the title until the loan is paid off. In other states, the driver holds the title while paying off the loan. |
| What happens when the loan is paid off? | Once the loan is paid off, the lien-holder is removed from the title, and the owner's name is added. The owner becomes the legal owner of the vehicle. |
| What if I want to sell the car before paying off the loan? | If you have positive equity in the car (i.e., you owe less than the car's worth), you can sell the car, use the profits to pay off the loan, get the title, and transfer it to the new owner. |
| What if I can't find the title or it's damaged? | You can request a duplicate title from your local DMV or SOS. |
| How much does an Illinois title cost? | $165.00 |
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What You'll Learn
The process of obtaining a car title in Illinois
Purchasing from a Dealership:
If you purchase a vehicle from a dealership, the process of obtaining the title may be relatively straightforward. Typically, after purchasing a vehicle, you will receive the car title in the mail within two to six weeks. However, this timeline depends on providing the dealership with all the required documents and signatures. The dealership may also guide you on any additional documents needed, especially if the vehicle has a co-buyer or was previously owned by a business or deceased individual. In most cases, once you've signed the title and registration application and completed any payoff requests, the transfer of the title can be initiated.
Purchasing from an Individual:
When buying a vehicle from an individual, the process may differ slightly. In addition to obtaining the title and registration, you must complete a tax form specific to purchases from individuals (Tax Form RUT-50) and make a separate tax payment to the Illinois Department of Revenue. It is crucial to ensure that the vehicle information on the title matches the application and that the odometer reading and date of sale are accurately recorded.
Registering a Vehicle from Another State:
If you are bringing a vehicle into Illinois from another state, you will need to surrender your old title and receive a new one registered in Illinois. The Department of Motor Vehicles (DMV) will send you a new title with your name on it as the owner registered in Illinois. This process ensures that there cannot be two titles for the same vehicle, establishing clear legal ownership.
Fees and Costs:
Obtaining a car title in Illinois incurs various fees and costs. The Illinois title itself costs $165, while license plates for passenger cars and B-trucks are $151, and electric vehicles are $100. Additionally, there is an electronic registration transfer fee of $35, and the Illinois documentation fee is $367.70. These fees must be considered when budgeting for the purchase of a vehicle and obtaining the necessary registration and title.
Online Application Process:
Illinois has an Electronic Registration and Title (ERT) System that allows individuals to complete and print an Application for Vehicle Transaction(s) (VSD 190) online. This system provides convenience and efficiency in processing title applications. Alternatively, individuals can obtain Title and Registration applications by visiting or contacting the nearest Secretary of State facility or calling their toll-free number within Illinois: 800-252-8980.
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What to do if your car title is lost or damaged
In Illinois, a vehicle title is proof of ownership of a car, truck, SUV, or motorcycle. It is an important document, like a birth certificate or social security card, and should be guarded as heavily as the deed to one's house. If your car title is lost, stolen, or damaged beyond proper use, you should request a duplicate title as soon as possible. This is because you will need the title to sell the vehicle in the future.
To obtain a duplicate title, you will need to fill out an Application for Vehicle Transaction, form VSD 190, which is available online. Once it has been filled out, print it out, sign it, and mail it to the following address:
Secretary of State Vehicle Services Department ERT Section, Rm. 424 501 S. Second St. Springfield, IL. 62756
You can pay the fee by check or money order. If you are worried about your shipment getting lost in the mail, you can choose a tracked shipping option. You can also submit your request in person or order one by phone. If you need your replacement title right away, submit your request in person before 12 pm and pay an extra $30 for expedited service. It will be ready the same or the next day, but a signature will be required upon receipt.
If you are an out-of-state resident who purchased a vehicle with a lost title from an Illinois resident, you will have to ask the former owner to apply for the duplicate title on your behalf. If the last valid title holder has also moved out of Illinois, they can use their former Illinois address and specify that the replacement title be sent to your address. Duplicate titles will not be given out within 15 days of the issuance of the original copy or within 30 days of a previous duplicate. This is to protect against fraud and incentivize people to take better care of their important documents.
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What to do if you want to sell your car before the loan is paid off
In Illinois, if you want to sell your car before the loan is paid off, there are a few things you need to do. Firstly, you must settle the outstanding balance with the lender. You can do this by contacting the lender and making arrangements to pay off the remaining loan amount. Once the loan is paid off, the lender will typically send a letter indicating that the loan has been satisfied and the lien on the car title has been released.
After paying off the loan, you can proceed with selling your car to a dealership or a private buyer. If you sell to a dealership, they can handle the remaining balance and transfer of ownership. They will contact the lender and take care of the payoff, and you won't have to worry about the title transfer. However, if you sell to a private buyer, they cannot purchase the vehicle with a lien on it. Therefore, you must ensure that the loan is paid off and the lien is released before selling to a private individual.
When selling your car, there are specific documents you need to have ready. The legally required documents in Illinois are the car title and registration. Additionally, it is recommended to have a Bill of Sale, which acts as a sales contract and documents the sale of the vehicle. The Bill of Sale should include the vehicle's make, model, year, body type, colour, Vehicle Identification Number (VIN), purchase price, and date of sale. It should also include the names, addresses, and driver's license numbers of both the buyer and seller, along with their signatures. While a Bill of Sale is not required by law in Illinois, it can provide protection and peace of mind for both parties.
It is important to note that as the seller, you should keep your license plates and remove them from the vehicle after the sale. The buyer is responsible for obtaining their own title within 20 days of purchase. They will submit the assigned title with Form VSD 190 and Form RUT-50 from the Secretary of State, along with the required fees. The buyer must pay a fee to the Secretary of State and a tax to the Department of Revenue, which varies depending on the vehicle's value and age.
In summary, if you want to sell your car before the loan is paid off in Illinois, you must first settle the outstanding balance with the lender. Then, you can sell your car to a dealership or a private buyer, ensuring all the necessary documents are in order. Remember to keep your license plates and remove them from the vehicle, as the buyer will need to obtain their own title and registration. By following these steps, you can successfully sell your car before the loan is paid off while complying with Illinois laws and regulations.
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How to obtain a duplicate title in Illinois
In Illinois, your vehicle's title serves as proof of ownership and contains important information such as the vehicle's identification number. If you're unable to find your vehicle's title or it has been damaged, you can request a duplicate title. Here is a step-by-step guide on how to obtain a duplicate title in Illinois:
Step 1: Download and Fill Out the Duplicate Title Application
You can obtain the Illinois Duplicate Title Application online, by visiting the nearest Secretary of State facility, or by calling (800) 252-8980. Make sure to fill out the form accurately with all the required information.
Step 2: Submit the Application
You can submit the duplicate title application in person at the Secretary of State Facility or by mail. The address for mail-in applications is:
> Office of the Secretary of State
> Vehicle Records Processing Division
> 501 S. 2nd St., Room 424
> Springfield, IL 62756-6666
Step 3: Pay the Required Fees
There is a $50 title fee that must be submitted along with your application. Additionally, there may be other fees, such as a $3 fee to correct the registration card.
Step 4: Wait for Processing
The processing time for obtaining a duplicate title is typically 4-6 weeks, whether you submit the application in person or by mail.
It's important to note that if there is a lien on your vehicle, the duplicate title will be mailed to the lienholder. In this case, you will need to include the complete name and address of the lienholder on the duplicate title application. If there is no lien, the title will be mailed to the principal owner listed on the application.
In some cases, you may need to provide additional documentation, such as a court order or a marriage license, to support your request for a duplicate title. Additionally, if your vehicle is co-owned, additional documents and signatures may be required to process the duplicate title application.
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How to remove the lien from your car title
In Illinois, a lien on your car title means that, in the eyes of the Illinois Secretary of State (SOS), your vehicle belongs to someone else. This is a form of legal protection for the property owner, ensuring they receive compensation for something they have sold if the buyer fails to make the full payment for the item. The lienholder also has the legal right to repossess the vehicle if the buyer defaults on their loan or ceases to make payments.
If you have paid off your car loan, you can have the lien removed from your car title. You are not required to do this, and if you have no plans to sell or trade your car, it can wait. However, if you do want to remove the lien, you will need to submit one of the following items to your local Illinois SOS office location:
- A lien clearance letter or a lien contract letter from your lienholder explaining that the lien has been satisfied.
- A court order telling the Secretary of State's office to issue a title without the lien. This must be signed by the judge presiding over the case and include the year, make, and vehicle identification number (VIN) of the car in question, as well as the field stamp of the clerk's office.
- You may also need to submit the vehicle's year, make, and VIN, as well as the signature of the judge and the field stamp of the clerk's office, without a court order.
Once the lien is removed, you will receive a new title with the lienholder's name still on it but stamped off, indicating they no longer have an interest in the vehicle. You should also receive a lien release letter from your lender.
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Frequently asked questions
A car title is a document that serves as proof of ownership and includes important information such as the vehicle's identification number.
Banks can hold vehicle titles in Illinois if there is a lien on the vehicle. Once the loan is paid off, the lien is released and the title is sent to the owner.
The process of obtaining a car title in Illinois depends on whether the loan has been paid off. If the loan has been paid off, the lien-holder will be removed from the title and the owner's name will be added. The owner will receive a notification confirming the loan has been paid off and an official release of lien letter. The owner must then bring this letter to the DMV or town clerk's office to apply for an updated title.
Obtaining an Illinois car title costs $165.
