Its a gray area,but nothing that isnt puplic knowledge.you basically sell them your car and buy it back,at a price you decide,although the car doesnt actually change hands,only ownership.You will pay nj tax on this price when when you transfer.Pick a realistic price,and pay the tax,lowball number is a red flag for them. You get registration,and a letter stating Al. is non title state and get notarized bill of sale . Fee is usually 100.
Call,they will explain in more detail.
NJ mv will not like the Alabama paper work,and may ask you to go to .Trenton,with info.
Dont go until you get a phone number for the office and call,to be sure they are not asking for anything else like pics or number tracing.
Tom