Yes they must have paper work and heres the law for south car,
Recording Requirements:

Per the Uniform Commercial Code adopted January, 1968: Must be filed within 10 days in the county where buyer or mortgagor resides; if non-resident, where property is located at time of execution of instrument. The place of recording in the office of the Registrar of Mesne Conveyances; where such office does not exist, with the Clerk of the Court.

Recovery Requirements:

As per the UCC, repossession is allowed and permitted as long as it is peaceful, after a Twenty Day Right to Cure Letter from lienholder to debtor.

Redemption Requirements:

Cure law in effect.

Deficiency Requirements:

Permitted.

Special Motor Vehicle Provisions:

Liens must be recorded on face of the title. (Exclusive method of recording.)

Documents Required to Transfer Ownership of Motor Vehicle:

Title and lien release; repossession affidavit and notarized Power of Attorney.



Documents Required for Liquidation:

Notarized bill of sale, title and repossession affidavit.



Plates:

Remain with the owner / debtor

In most states no they do not have to show paperwork, but when in dought call 911