Why DMVs Are Running Out of Car Titles: The Nationwide Shortage Explained

Episode Show Notes / Description: 

• The supply chain crisis continues to impact the automotive world—and now even government agencies.
• A new report from The Wall Street Journal reveals a surprising shortage: title paper used to print vehicle ownership documents.
• Unlike regular paper, car titles are printed on secure, specialized paper—similar to money or checks.
• These documents include watermarks, hidden features, and colored threads to prevent forgery or duplication.
• Because a car title is a "bearer instrument" that proves ownership, it must meet strict security standards.
• This special paper is now in short supply, affecting DMVs and dealerships nationwide.
• Some dealerships are facing delays in printing titles, especially when a physical copy is still legally required.
• While some newer vehicles can be issued electronic titles, many situations still demand physical documents—especially out-of-state sales or title transfers to buyers or lien holders.
• In some states, title delays are stretching out for months, frustrating both sellers and buyers.
• The supply chain issue isn't just about chips, batteries, or parts anymore—it's about the paperwork you can’t drive without.

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So here's another reason that the supply chain is affecting the automotive business and even government agencies. Here's an article from The Wall Street Journal where they're talking about a shortage of title paper. Right, first of all, it was computer chips, batteries, four logos—now another shortfall is vexing the auto industry: the lack of paper used to show ownership. And you might think, well why not just print it on a laser printer? There's paper at home, at Office Depot—why can't I just print it?

Well, titles are not printed on plain white paper. They're printed on security documents, just like money or other security documents like checks. It has watermarks, it has hidden features for security, it has woven different color threads in it—because a title document is a bearer instrument which shows who owns the vehicle. They don't want it to be forged, they don't want it to be duplicated, so it's on special paper. That paper is in short supply. We're finding clients that are dealerships that are running into title problems because they can't get titles printed.

Now newer vehicles, a lot of times you can do an electronic title—you don't need the paper. But for vehicles that are going to another state, or maybe going to a lien holder, or that you have to hand the title over to a buyer, title paper is becoming a problem. In some states, you might have to wait months to get a title for a vehicle that you're applying for.

So backlogs of supply chain issues aren't just about physical things in the car like chips or batteries or logos. It's about things that are invisible to most buyers. Title documents are key to owning a vehicle. And if the DMV doesn't have enough paper to print them, that's going to slow people down in getting the right paperwork that they need to transfer ownership or get a lien released on their motor vehicle.