How to Start a Title Loan Business
How to Start a Title Loan Business in Alabama
A common question regarding how to start a car title loan business in Alabama or any other State often begins with title topics. How does a car title loan lender put the loan collateral (the car, motorcycle, RV, boat…) in the lender’s name? How to make certain a title is “clear?” How to make certain the title loan borrower applicant is really the legal owner of the collateral?
Of course, all these questions are answered in our “How to Start a Title Loan Business Manual.” Much of the work we put into our “Manual” is a result of spending many man hours on the DMV websites of all 50 States. And, we’ve learned a LOT about cat title lending as a result of operating our own stores and Internet portfolios. 
Below, is a list of frequently asked questions regarding “titles” for the State of Alabama.
Alabama Vehicle Title FAQs
What year model motor vehicles does the State of Alabama title?
Where do I apply for an Alabama certificate of title?
What does it cost to make application for Alabama certificate of title?
What documents will I need to make application for Alabama certificate of title?
How long does it take to receive an Alabama title?
My lienholder is currently holding an out of state certificate of title to my vehicle. How can I apply for Alabama certificate of title when I do not have the outstanding certificate of title to surrender?
How do I apply for a replacement title?
I satisfied the lien on my vehicle and received the Alabama certificate of title with the lien released on the certificate of title. However, I subsequently lost the title. Why do I need a lien release in order to apply for a replacement Alabama certificate of title?
What year model motor vehicles does the State of Alabama title?
Every motor vehicle not more than 35 model years old which is domiciled in Alabama and is required to be registered in Alabama is required to have an Alabama certificate of title. Travel trailers and folding and collapsible camping trailers not more than 20 model years old also are required to have an Alabama certificate of title. Manufactured homes not more than 20 model years old are also required to be titled.
ALABAMA TITLE DEFINITIONS: The term motor vehicle shall include every automobile, motorcycle, mobile trailer, semitrailer, truck, truck tractor, trailer and other device that is self-propelled or drawn, in, upon, or by which any person or property is or may be transported or drawn upon a public highway except such as is moved by animal power or used exclusively upon stationary rails or tracks. Every trailer coach and travel trailer manufactured upon a chassis or undercarriage as an integral part thereof drawn by a self-propelled vehicle.
EXCLUSIONS: No Alabama certificate of title shall be obtained for:
(a) A motor vehicle more than 35 model years old or trailer more than 20 model years old.
(b) A vehicle owned by the United States or any agency thereof.
(c) A vehicle owned by a manufacturer or dealer and held for sale, even though incidentally moved on the highway or used for the purpose of testing or demonstration, or a vehicle used by a manufacturer solely for testing.
(d) A vehicle owned by a non-resident of Alabama and not required by law to be registered in Alabama.
(e) A vehicle moved solely by animal power.
(f) An implement of husbandry.
(g) Special mobile equipment.
(h) A pole trailer.
(i) ATVs.
(j) Snowmobiles.
(k) Off road vehicles.
(l) Junked vehicles.
(m) Boats.
(n)Mobile homes, travel trailers, and mobile trailers designated 1989 year models and prior year models.
(o) Utility trailers. A utility trailer is a vehicle without motive power designed to be drawn by a passenger car or pickup truck.
(p) A folding or collapsible camping trailer more than 20 model years old.
(q) A vehicle for which the Alabama license plate issuing official has verified that the current owner or operator is recorded as the owner or operator on a currently effective certificate of title issued by another state and the certificate of title is being held by the recorded lienholder.
Where do I apply for an Alabama certificate of title?
Applications for Alabama certificate of title must be made through a Designated Agent of the Alabama Department of Revenue. Designated Agents include: County License Plate Issuing Officials, all licensed Alabama motor vehicle dealers, and some financial institutions located in Alabama such as banks and credit unions. An application for replacement title can be submitted directly to the Alabama Department of Revenue by the recorded owner(s) or lienholder.
What does it cost to make application for Alabama certificate of title?
The title application fee is $15.00 for each application for Alabama certificate of title for a motor vehicle. The title application fee is $20.00 for each application for Alabama certificate of title for a manufactured home. Designated agents shall add the sum of $1.50 as the commission for each application processed. County License Plate Issuing Officials may also collect an additional $1.50 commission for each application processed to defray the cost of processing and mailing title applications. Certain counties may also have local fees which are due when an application for title is processed by that County License Plate Issuing Official. Please contact the County License Plate Issuing Official to determine if any local fees apply.
What documents will I need to make application for Alabama certificate of title?
An applicant for Alabama certificate of title must surrender the following documents to the designated agent in order to complete an application for Alabama certificate of title: (a) the outstanding manufacturer’s certificate of origin or certificate of title that is either in the applicant’s name or assigned to the applicant and any documents which support the transfer of the vehicle to the applicant; (b) if the vehicle is currently registered in a jurisdiction which does not title such vehicles, the applicant must surrender the outstanding registration documents which substantiate ownership of the vehicle. Additional documentation may be required if it cannot be determined whether the vehicle meets federal and state safety, emmissions and anti-theft standards.
How long does it take to receive an Alabama title?
Processing times may vary. If you have not received your Alabama title within a reasonable time period, please contact the Designated Agent that completed your title application for assistance. If the Designated Agent cannot provide assistance, you may contact the Title Section at titles@revenue.alabama.gov.
My lienholder is currently holding an out of state certificate of title to my vehicle. How can I apply for Alabama certificate of title when I do not have the outstanding certificate of title to surrender?
No certificate of title shall be issued for a vehicle for which the Alabama license plate issuing official has verified that the current owner or operator is listed on a currently effective certificate of title issued by another state and the certificate of title is held by a recorded lienholder.
A vehicle normally subject to the Alabama title law would be required to registered without obtaining an Alabama certificate of title first if all of the following requirements are met:
The registrant is listed as the owner or operator on the out-of-state title.
There is a lien recorded on the out-of-state certificate of title.
The title is being physically held by the lienholder and the title was not issued by one of the states listed below.
The vehicle’s owner must provide to the county licensing official a copy of the certificate of title or a print out of the title record from the state if it issues the title in electronic format.
The following is a list of states that sends the valid original title to the owner and not to the lienholder.
Applicants from these states must surrender the out-of-state title to the license plate issuing official and their vehicles will be required to be titled in the State of Alabama:
Kentucky
Maryland
Michigan (unless owner authorizes title to be mailed to lienholder)
Minnesota
Missouri
Montana (unless owner authorizes the mailing with signature)
New Jersey
New York
Oklahoma
South Dakota (unless owner indicates that title is to be mailed to lienholder)
Wisconsin
Wyoming (title may be mailed to either the owner or lienholder as requested)
If the owner has requested that a Michigan, Montana, South Dakota or Wyoming title be mailed to the lienholder, the owner must provide documentation from that state that title was mailed to the lienholder in order to be exempt from titling the vehicle in the State of Alabama.
How do I apply for a replacement title?
An application for replacement title can be submitted directly to the Alabama Department of Revenue by the recorded owner(s) or lienholder. The application fee is $15.00, non-refundable. In addition, an application for replacement title can be processed by any designated agent.
I satisfied the lien on my vehicle and received the Alabama certificate of title with the lien released on the certificate of title. However, I subsequently lost the title. Why do I need a lien release in order to apply for a replacement Alabama certificate of title?
At the time that the lien was released the Department was not notified of this fact. Therefore, when the Alabama certificate of title was lost so was the lien release.
