TITLE EXPERTS EXPLAIN HOW TO BUY A CAR WITHOUT A TITLE IN THE UNITED STATES
INTRODUCTION
Did you know that buying a car, for most people, is the second biggest purchase in an individual’s lifetime aside from a home? Buying a new or used car is an important decision that must be made with clear thinking and patience if the intention is to legally drive the vehicle on public roads. In most cases, taking possession of a new car is an exciting experience, however, buying a car without a title can easily transform exhilaration into frustration. Imagine taking possession of a vehicle that you spent weeks researching, to find out that there is no title to register the vehicle. This is the reality for as high as 10% of car buyers across the United States.
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Buying a car without a title is certainly more challenging and time consuming than buying a car with a title, however, there are steps to take if your dream car doesn’t have a title. When taking these steps, we recommend extreme caution, as if not done correctly could result in legal issues. Scams and schemes are always a possibility when dealing with a car without a title. Our article doesn’t cover bonded or replacement titles like the services we offer here at J.G. Title Company. This article is to assist you in the self-service process. If you do have questions, our title experts are available six days a week to help you gain clarification.
INFORMATION TO CONSIDER
In many states, buying a vehicle without a title is illegal. Mainly due to the complications it makes for all parties involved in transferring ownership, buying or selling a car without a title in most US states is not prohibited. You should make sure you have some of the basic pieces of information to correct the title problem:
1. VIN number – this can be used to run a vehicle history check to confirm it is not a stolen vehicle.
2. Bill of Sale – this can be easily created and documents the sale. Click here for a blank Bill of Sale.
ASKING ABOUT THE TITLE
To remember what you need when buying a car without a title, check out our Free Missing Title Checklist.
A key factor to deciding whether the vehicle is right for you is getting information about the missing title. It could be as bad as a scam or simply the seller has misplaced the title and needs a simple replacement. Full-service options for duplicate titles in all 50 states are available here. Some of the questions that need satisfactory answers are:
1. Is the missing title registered to the seller’s name?
2. Has the seller paid all taxes associated with transferring the title from the original seller?
3. Are there co-owners on the missing title? This could impact how easy it will be to obtain said title.
4. Is there a copy of the title in existence? This will help whoever processes the duplicate title transaction to make sure the information is completed correctly.
5. Is there a lien on the title? In other words, did the seller have a loan on the car before selling it to you?
6. If there was a lien, is the lien paid off? If it isn’t, you won’t be able to transfer the title into your name until the loan company is paid in full.
7. If the lien was paid off, does the seller have a copy of the lien release? This document proves that the loan was paid in full and there is no obligation for payment to a bank before transferring title to your name. It is imperative that this document is produced before taking ownership of a vehicle/title that had a lien at one point.
8. What state is the title held in? This will determine in which state the title needs to be duplicated in.
9. Is the title branded?
10. Is the title salvaged?
11. Is the title a junk vehicle?
Though these questions can typically help discern whether the title is able to be produced at some time, it is highly recommended that you keep the following statements in mind. For each legitimate reason for losing the title, there are two illegitimate reasons for not having a title. In order to transfer titles legally in all 50 states, the person applying for the duplicate title must also be on the front of the title. In other words, if the seller purchased the car and the previous owners never transferred title to the seller, it is not possible for you to take ownership of the vehicle. All persons who paid for the vehicle must pay tax and registration fees to legally transfer the title from one name to the next. If the seller tells you that there are three or four people removed from the title, steer clear of the car as this will be nearly impossible for you to complete in a timely fashion. Possible? Yes. Worth it? Probably not.
CONDITIONS TO CONSIDER
Legality: *this section should not be considered legal advice
As referenced above, buying/selling/driving a car without a title is illegal in most US states. Although this crime is akin to speeding five miles per hour over the limit, the likelihood of the State assisting you in your journey to correct your title is basically zero.
Time Expense:
The time invested in getting a missing title replaced can take a minimum of 8-12 weeks working through the traditional DMV processes and offices. This can cause several issues for you
· Banks will not loan money on a vehicle that doesn’t have a title
· Insurance companies may refuse to insure the vehicle
· The DMV will not allow you to obtain proper and legal tags
· Potential misdemeanor and felony charges depending on the situation
If you are feeling apprehensive about researching and obtaining a replacement title, we recommend using services like ours here. J.G. Title Company is a trusted automotive titling company who has expert level experience solving the most complex titling situations. Our title experts are licensed and trained in all 50 states, trained to obtain duplicate and replacement titles under strenuous circumstances. Handling a missing title transaction can be arduous depending on the state in which it is held which is why thousands of individuals and businesses use J.G. Title Company as their sole title facilitator.
Scams and Schemes:
In many cases, a car without a title is a clear indication of a scam. The door is open for someone with a broken vehicle to sell it to you and disappear without a trace. Before leaving the house to look at the vehicle, you need to ensure that the vehicle is not stolen. Accidentally purchasing stolen goods doesn’t absolve you from a felony. Click here to use a VIN Verifier through J.G. Title Company. Ask the seller for the VIN number. If they decline to provide the VIN, it is usually a sign of nefarious intentions. We recommend using a VIN Verifier to authenticate the VIN.
Meeting the Seller:
After you have confirmed that the vehicle is not stolen it’s time to make sure that the seller does not have bad intentions with the sale. We recommend that you always see the vehicle and meet the seller in person to make sure that the vehicle itself is in decent working condition. Always bring a friend and meet in a public place when looking at a prospective car purchase. Having an individual with your interests in mind is a necessity due to the car purchase in large part being an emotional purchase. The worst-case scenario is looking at a car and getting sold a vehicle that isn’t the best fit for you. Typically a friend can help validate whether or not the seller and vehicle in question is the right combination for you and your family.
Test Driving the Vehicle:
Never underestimate the strength of taking a test drive with a seller (and your friend). Understanding how the car drives gives you more leverage when it comes to negotiation of the sale. It also allows you to get a feel for the vehicle and how it will drive. If the vehicle doesn’t drive well, is there any point in continuing to keep interest in it? We recommend coming to the sale with a pre-planned route that has a good mix of street and highway driving to feel all aspects of the vehicle.
Pre-Purchase Inspection of Vehicle:
If the test drive is successful, it’s time to move to the next step in the process. This will involve having the vehicle inspected by your local mechanic. The purpose behind this step is to obtain the opinion of a third-party expert in automobile repair. Mechanics and mechanic shops are fitted with equipment that is specifically designed for identifying issues with broken parts on vehicles. This will ensure that you have a clear understanding of the condition of the vehicle.
Making the Deal:
After you have met the seller, understood the factors that have caused the missing title, confirmed it is not a stolen vehicle and in working condition, it’s time to negotiate the deal. Keep in mind that even if you pay for the vehicle, if the title is never produced, you technically don’t own it in the eyes of the law. We recommend that the actual transfer of funds doesn’t happen until the title is produced. This can save you from taking on someone else’s nightmare. Once you have given the money to pay for the car, all the leverage you have has disappeared. If it turns out that the seller indeed has nefarious intentions, you could easily try calling them and their phone is disconnected.
Even if you make a bill of sale with the seller, the title is the ironclad ownership document that supersedes all other ownership documents. In a legal situation, having a bill of sale is good documentation to have to prove your story but doesn’t carry the legal weight that the title has.
With that said, we recommend that you make the bill of sale with the seller very detailed. You must include the following:
· Name of Seller
· Address of Seller
· Phone number of Seller
· Name of Buyer
· Address of Buyer
· Phone number of Buyer
· VIN number of the car in question
· Year of the vehicle
· Make of the vehicle
· Model of the vehicle
· Color of the vehicle
· Mileage on the vehicle at time of sale
· Selling Price
In addition to capturing these pieces of information on the Purchase Order, we also recommend taking a copy of the seller’s photo ID. The purpose of doing this and taking this information is to prove in a court of law that you are the rightful owner of the vehicle if necessary.
A popular method of data collection includes recording the sale on video. Filming while you buy the car is a common practice in franchise dealerships and should be welcomed by your seller. By obtaining video, it makes it very difficult for a seller to claim that you stole their car or that they were never paid. We believe that airing on the side of caution is always the best way to approach car transactions where a title isn’t present.
Lastly, we highly recommend adding a paragraph to your bill of sale that outlines that the title wasn’t present at time of sale. It should include the steps which will be taken to obtain the title. Ideally, the entire car purchase should be written subject to a title being produced within an agreed amount of time. This can certainly help your case to prove the situation to a court if needed
ADDITIONAL INFORMATION
Although these steps and precautions seem complicated and time consuming, it is the best way to ensure that you don’t find yourself in a situation that is unfixable. Protecting your own interests should be your number one priority. Scammers will stop at nothing to get something for free.
Some scamming tactics may include the seller claiming that you stole their car. They could claim that the title was never lost and the minute you drive down the road, they call the police and file lawsuits for damages that you caused. Although seemingly far-fetched, these situations happen every day across the nation. In some cases, there are reports of sellers holding titles hostage and forcing you to pay more money to receive the title.
RESOURCES YOU CAN USE
It is certainly possible to purchase a vehicle without a title. It will, however, stray from the normal car-buying experience. To recap, we highly recommend checking state laws in your area to confirm that buying a car without a title is legal in your state.
Doing due diligence before purchasing the vehicle is the solution to many title situations gone wrong. Checking VIN records (service found here), meeting the seller, test driving the vehicle, having the vehicle inspected, and signing a clear bill of sale on camera are basic steps that must be completed to properly obtain a replacement title.
We recommend using our services here to ensure that you are following protocol and performing the transaction properly. J.G. Title Company is a nationwide automotive titling authority with deep ties to government agencies across the U.S. The process is quick, easy, transparent, and professional. Click below to start obtaining a title through J.G. Title Company.
What People Say…
“One of the easiest things that I’ve done they took it from my out of state title to my instate title and my new plates. All I did was pay and in two days I was legal. BEST OF ALL NO PROBLEMS.”
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