The pink slip or certificate of title recognizes an individual as the legal owner of their vehicle. The slip is essential when:
- You want to sell your car to a potential buyer
- You want to seek loan against the value of your car
If the owner lends money against the vehicle then the certificate is usually held by the name of the lender, which is soon released after the balance has been paid off. While, when the car gets sold from one owner to another then the pink slip has to be transferred to their name too. The transfer of this slip can be performed once the full payment is received by the owner.
When you are out there searching for the ultimate car never forget to pay attention towards the pink slip. If the one that you’ve selected does not have them then it’s wise to switch to those who come up with proper documents. Because, at the end of the day, buying car is a huge investment and you must ensure that everything is at its place.
Why the Pink Slip Matters While Purchasing Car?
This slip is a legal document that contains essential information required for the proper certification of the car and these are:
- The car registration number
- Identifying information such as date of manufacture and car registration number
- The address and name of the buyer who is the certified owner of the car
- Essential information associated with taxation
- If the car is bought on loan, then the name of lender and the amount left for repayment
Things That Can Be Avoided with Pink Slip
The presence of a well-maintained slip can help you avoid many complications and some of them are enlisted below:
- Fraud: You never know whether the car truly belongs to the person who claims to be its owner and the slip authenticates this. With this you get to purchase the car from their real owners and buy it with a peace of mind. Being cheated after paying for the purchase is a situation that no one would want to be in and the pink slip avoids the same.
- Difficulty in financing or insuring: You may be buying the car using external finances and for this you would definitely need the slip. Because as stated earlier, if the car is bought by taking a loan then the title would be in the name of the lender and this will only be possible when there is a slip for the job. Thus, with the pink slip you will never face any difficulties both with financing or insuring the car.
- No resale value: The resale value of the car is even based on the slip. This is because potential buyers often search for them to remain in compliance with the governing laws of the state and thus providing them becomes inevitable. Therefore, after you’ve purchased the car and are planning to resell it then make sure that the slip is updated too.
Grab the Best with The Use of Pink Slip
The slip is an essential component of owning a car that should never be overlooked. Hence, when you are searching for a remarkable car then do make sure that it is backed by a pink slip that entitles the owner and other valuable information of the car.