Why is documentation better than state registration?

1. The Department of Motor Vehicles purges its records after 4 years. This is a problem for persons who may have the need to obtain complete chain of title since records are not available.
2. State registration is simply a local taxation process much the same as automobiles, and has no federal validity in changing the flag or nationality of ownership for Customs purpose.
3. You may find it difficult, if not impossible to finance your boat if it is not documented since many lending institutions require documentation.