The Benefits of Electronic Car Titles
Electronic titling represents the future of recordkeeping for vehicle ownership and transactions. Already, 20 states have some kind of electronic car title program in place, and it’s likely that these programs will soon spread to other states across the country. While electronic titling isn’t always required, it does come with some impressive benefits, so it’s worth considering even if it’s not strictly mandated. What exactly is electronic titling? And why is it so beneficial? Keep reading to find out!
What Are Electronic Car Titles?
An electronic car title (or e-title) functions much like a traditional title: it serves as a record of automobile ownership. These electronic records are stored in a database and accessed using title management software. A digital car title serves as proof of ownership just as a paper title would, and these digital records are available for all types and classifications of motor vehicles.
Your electronic title will contain all of the same information as your paper title, including your personal information and records of transfer. Dealerships and motor vehicle agencies are responsible for transmitting and managing electronic titles.
The Benefits of Electronic Car Title Systems
These are some of the most important benefits of an electronic car title system:
- Better data accuracy. When processing and working with paper titles, there are countless opportunities for mistakes and intentional alterations. Handwritten information can be forged, misread, or misinterpreted, resulting in inaccuracies that can affect multiple parties. While simple errors are still possible in a digital environment, especially if you’re converting a paper title into an electronic title, most experts agree that electronic car title systems give us greater data accuracy. Just as electronic banking revolutionized our banking systems, electronic titling has the potential to revolutionize our titling systems.
- Faster exchanges. The process of getting a new title for a car can be agonizing, taking weeks to process and mail out paperwork. But when it comes to electronic car title exchanges, the process is much simpler and faster. It can be initiated in just a few minutes, though electronic lien releases can still take some time.
- Reduced mailing costs. It doesn’t cost much money to mail a paper title, but if you’re mailing thousands of paper titles, those costs can significantly add up. With electronic titling, you won’t have to worry about mailing at all; everything is done electronically.
- Improved security and integrity. Some people appreciate electronic card title systems because of the improved security and integrity. Paper titles are easy to lose; they can be destroyed in natural disasters, they can be forged, and they can be stolen. But in an electronic titling system, information is much better guarded. There are still security threats and risks you need to account for, but this environment is generally more secure.
- Reduced administrative costs. Dealerships and government agencies also benefit from reduced administrative costs. It takes less time and effort to process electronic titles.
- Paperless operation. Electronic titling reduces the need for paper, making it possible for some companies to go truly paperless (or nearly so). In addition to saving money, reducing paper consumption benefits the environment.
- Relatively low costs. Title management software does cost some money, but the expenses of managing electronic car titles are minimal compared to paper titles.
- Improved experience for all parties. Automobile owners, private sellers, dealerships, and even bureaucratic government employees all benefit from electronic titling. This is a faster, cheaper, more convenient, and more secure solution.
There are a few drawbacks to keep in mind as well, but on the whole, electronic titling is advantageous.
- Paper and digital conversion processing. Sometimes, converting a title from paper to digital or from digital to paper can be time consuming. It’s possible to request a paper title at any time, but this is associated with administrative costs.
- Processing delays. In some states and situations, getting a new title after an electronic lien release is a time-consuming process that can take months.
- Lack of widespread accessibility. Electronic titles aren’t available to all people in all areas—at least not yet. Right now, we’re in a transition period where both paper titles and e-titles are commonplace, making some logistical elements confusing to manage.
The Role of Title Management Software
With the help of title management software, processing and storing electronic car titles becomes much easier. These platforms can help you with every step of the process, including:
- Electronic lien and title (ELT) storage. Through title management software, you can store and access electronic records. You can also easily convert paper titles to electronic titles when necessary.
- Paper title requesting. If someone requests a paper title, your title management software may be able to help you process this request.
- Title release for ELT and paper. At the end of a loan, title management software can also help you manage a title release.
How Do I Get My Electronic Title in Ohio?
Your Ohio electronic title is managed through the Ohio BMV. As an individual, you can convert your paper title to a digital car title upon transferring that title to another party. You can also complete this process at most major auto dealerships.
Auto dealerships can begin processing and managing electronic car titles at any time using title management software to make things much smoother. This is a huge benefit for both your brand and your customers, so it’s generally worth pursuing.
If your auto dealership is interested in processing electronic car titles but you aren’t sure where to start, CTMS can help. We can also help you create an information security program designed to keep your electronic records and customer information safe. If you’re ready to get started with a free consultation, contact us today!
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Computer Technology Management Services (CTMS) supports organizations nationwide with high-quality, customizable business IT tools and cybersecurity strategies for dealerships and more.