The State of Michigan made the switch to electronic titles. It was mandatory as of October 1st 2023 that all titles with a lien recorded must be electronic. This is to help with the efficiency of handling titles subject to financing transactions. This also helps to prevent fraud associated with titles that have wreaked havoc on the vehicle titling industry. Finally, this will also help reduce costs to the State and Financial Institutions alike.
The following is information about what to expect when purchasing or refinancing a vehicle with a Michigan Electronic Title:
Dealership Purchases + Refinances:
If I purchase a vehicle and finance with FPCU, will my title be electronic?
Yes, your title will be electronic. You will not receive a paper title until after the loan is paid off in full.
If I am refinancing my vehicle with FPCU, will I keep my paper title?
No, if you initially had a paper title, moving forward, all titles issued with FPCU as the lien holder will be issued electronically. You will surrender your paper title and the title will be transferred to an electronic title with FPCU listed as the new lien holder.
How do I show proof of ownership without a paper title?
Your vehicle registration is the document that can act as proof of vehicle ownership.
How will FPCU release their lien?
FPCU monitors collateral loans and will automatically release our lien once your loan is paid in full. We will request a lien-free paper title be issued to you by mail. The released title will be mailed to whatever address FPCU has on file for you. Please remember this is one of the many reasons it is very important to have your address updated and current with FPCU. If a dealership or an insurance company pays off your loan, the title will be sent directly to that party.
What if I do not receive my title in the mail?
Once FPCU releases our lien, we cannot request another title for you. You will have to visit a Secretary State office or go on-line and request a lost title.
Do other states have electronic titles?
Yes, most states have followed a similar process for electronic titles for years, and Michigan is following suit. We have completely switched to this process October 1st, 2023. This means all titles processed after October 1st of 2023 with a lien holder will be electronic, regardless of what financial institution they're financed with.
Private Sale or Purchase:
How do I show proof of ownership without a paper title?
Your vehicle registration is the document that can act as proof of vehicle ownership.
I am selling my vehicle and the buyer wants a copy of the title. It is electronic, what would I provide to the buyer?
You can provide them your vehicle registration, if they are still requesting additional documentation, you can contact FPCU and we can assist you with obtaining a printable version of your electronic title to provide to the buyer, as their financial institution may need this to complete financing for the buyer.
What can we do to show the sale of the vehicle?
FPCU suggests that you, as the seller, draft a Bill of Sale between you and your buyer that includes the information for the vehicle and the terms of the sale. This is not required nor provided service by the Credit Union; however, it can help ease the worry and confusion of not having a physical title for both parties.
How will the new buyer receive the title?
Once the buyer's transaction pays the loan in full, FPCU’s Title Processing Department will request the Secretary of State to print a lien-free title and mail it to your address on file. Once you receive the title, you will sign it as a seller and provide it to your buyer. The buyer will take it to the Secretary of State to transfer ownership. Secretary of State suggests buyer and seller visit the Secretary of State together to complete the title transfer.
How long does it take to receive the lien-free title?
Mailed physical titles take an extended time frame to be delivered. We understand that you may want to speed this up as it can take 2-4 weeks to get a title from the Secretary of State in the mail. You can visit a Secretary of State Branch after FPCU has released our lien to have a duplicate title printed for a fee if that branch has the title paper stock to fulfill your request.
