Ever been in a situation where you spot a car you like abandoned in a barn, roadside, or junkyard in “rusty but restorable” condition? The owner is willing to sell it off for pennies, but there’s a catch, the owner can’t present the car’s paperwork, and without the paperwork, you’ll never be able to get a license plate.
Or is there a way? How do you get a title for a car with no title? Can you make meaningful progress without one? Well, let’s find out, shall we?
A car’s title aka ‘pink slip’ is its declaration of ownership.
Think of it like the receipt that accompanies a purchase, only it isn’t a receipt, just proof of ownership.
There are lots of things that could go wrong if you purchase a car with no title without taking necessary measures to protect yourself.
For instance, the person in possession of the title might claim the car, even after you’ve sunk your hard-earned money to buy and restore it.
Besides that, you will need the title to prove your ownership before you can register the car in your name. You cannot insure the car or take it back on the road ‘legally’ if you don’t register the car.
So, how do you rectify the issue of not title? How can you drive your car without finding yourself on the wrong side of the law?
Here’s how to get a title for a car with no title.
Let’s first talk about why the title is missing, hopefully, the seller is being truthful and provides an explanation that sounds believable and can be supported by evidence.
There are a few possibilities that may explain the missing car title.
Some of them are legitimate and others might be fishy or missing important details. The car’s title could have been damaged, destroyed, lost, or misplaced. Inversely, it might be a stolen vehicle.
You can leverage online resources such as AutoCheck and Carfax to confirm the legal status of the car. They can provide you substantial information concerning the vehicle.
This Vehicle History Report (VHR) will also include any history of accidents or insurance claims on the vehicle.
You can use these bits of information to verify what the owner of the vehicle is telling you.
It is best to walk away if there are inconsistencies between what the VHR information and what the seller says.
Another helpful resource to cross-check the status of a car with no title is the National Insurance Crime Bureau.
A missing title might indicate that it is a ‘flood’ vehicle that has been underwater at some point, or it might be a vehicle with a salvage title, which isn’t a bad thing.
Another possibility could be that the seller is attempting to do a ‘title jump.’ This is an illegal practice in every U.S state that involves selling a car without going through the title process to avoid paying sales tax.
It’s best to ask the vehicle owner to apply for a replacement title when buying a used car without a title.
How this works is simple, in the US, car owners have to renew their vehicle insurance and registration every year.
If the previous owner of the vehicle had done so in the 12 months prior to the sale, it’s very likely that the vehicle was registered in the person’s name and, on request to the DMV, can be presented with a replacement title.
This works best if the documents of the car were lost in a flood, fire, or some other occurrence. For a vintage car, you will need to go a couple of steps further.
Before we begin, you should know that the steps for registering a car without a title will vary slightly depending on the state.
If you purchased a salvaged vehicle or one where the owner has misplaced the title, and you are certain there’s no shady story or illegal business going on, you can inquire from your state DMV for the requirements to register a car without a title.
Like we mentioned earlier, the information you’ll need to provide before your vehicle gets title varies slightly from state to state.
You can get state-specific information on the federal government’s Department of Motor Vehicles website, alternatively, you can check your state’s DMV website.
Here you’ll find helpful addresses and phone numbers for offices you might need to visit, as well as downloadable paperwork.
You should expect to fill out a transfer or title replacement application form, so have important data such as the odometer reading, the car’s VIN number, a bill of sale, and a means of identification.
A car title is as important as the paperwork to your house. Only when the owner of the car has gone through all the safe and secure areas they would likely keep such an important document can you then proceed to have the title replaced.
I say this because the process is a time-consuming, relatively expensive, and nerve-racking experience. If you have your title but part of it is damaged, take it to your DMV office.
If you want the process of getting a title for your car to be easy, you need to find the previous owner and go over the necessary paperwork together.
If you can arrange to bring the car along on your visit to the state office to fill out all the paperwork, then do so.
Make sure the odometer reading and VIN on the vehicle match those in the paperwork as incorrect details might delay the process.
There cannot be an outstanding loan against a vehicle while transferring the title unless the transfer is approved by the lender.
Without a title to prove your ownership of the vehicle, you will need to check your state’s DMV website to find out if you are eligible for a bonded title in your state, and if you meet the requirement, one of which usually include residence in the state, you can go ahead to purchase a surety bond and apply for a bonded title through your state government.
It’s likely that you’ll be required to write a statement of fact regarding how the vehicle came to be in your possession, a photo ID, an application for a bonded title, and any evidence that confirms ownership of the vehicle.
It’s worth noting that the vehicle will not be eligible for a new title if it has been legally deemed stolen, junk, abandoned, or is involved in a pending lawsuit.
If you meet the requirements for a bonded title, you will get a letter from the state that contains the amount of the bond you need to purchase.
This is usually greater than the value of the car and is determined based on the information contained in the paperwork you filled.
Please note that the fee charged for the bond is not the same as the amount on the bond.
The bond itself is simply a legal document that indicates you are financially responsible for ownership of the vehicle.
Take the letter to an auto insurance agency in your state that is licensed to sell surety bonds.
Return to the secretary of state once you’ve purchased a bond to complete the titling process. Then you can go ahead to register your car to drive it on the road legally.
By applying for a bonded title, basically what you’re doing is making a promise that you are the true owner of the vehicle.
The bond protects the DMV and any previous owner of the vehicle. If someone comes forward later to claim ownership of the car and the ‘Lost bond title’ issued to you is deemed to be invalid, the surety company will compensate the person and it will be your responsibility to relay the surety company.
Which is why you need to perform extensive research on why the title is missing.
A bonded title is simply a regular title that’s been marked ‘bonded.’
You’ve probably heard of a rebuilt or salvage title, those are titles that have a different kind of marking. A bonded title means the title has a surety bond attached to it.
Depending on the state, you can apply for a clean title without the ‘bonded’ mark in 3-5 years.
If all of these steps seems like a lot of work to you, that’s because they are.
Though it is possible to replace a car title yourself, what most folks find unattractive is the number of paperwork involved and the time spent at the DMV.
You’ll need to ask yourself if the time and effort is worthy of the car.
Chances are, you might find a good deal somewhere else but without the title issue.
But, if you’re evaluating a vintage car and you think it’ll be worth the effort, then you should consider it time well-spent.
Ultimately, the decision to proceed with or without the car’s title will depend on just how much you want the car.
