Blockchain only makes sense for Decentralized uses. DMV records, by their very nature, are the epitome of a centralized authority of knowledge. This is a waste of time, money and CO2.
"Some look at was is and say 'NIH' (or an equivalent bureaucracy, the DMV). Others look at what could be and 'tap yes to complete transfer'." -- Not Quite JFK
Also when we borrow money to buy the car, the hypothecation is recorded on car's registration certificate and ownership records. When the loan is repaid, we have to get it removed by submitting closure documents to authorities.
So like a property transaction, change of title also needs to be recorded in official records.