Do you need to obtain a title bond for a bonded vehicle title? Here’s what you need to know about title bonds.
A title bond is a type of surety bond used to secure the claim of ownership over a vehicle that does not have sufficient evidence of ownership. A title bond is also referred to as a type of insurance, though it differs from other types of insurance in that it is not designed to protect against financial loss or physical damage. Instead, a title bond ensures that the party claiming ownership is providing factual information, and the DMV or title-issuing authority is not held liable for false claims of ownership after the title is issued.
A bonded title is a type of vehicle title that can be issued when proper evidence of ownership is not available. A bonded title is a very common method used to obtain a new title and is often a simple process if your state allows for this title method.
The cost of your title bond will be based on the value of your vehicle. Before obtaining your title bond, make sure you know the bond amount that your state requires. Most states require the bond amount to be 1.5x the book value of the vehicle. For example, if the book value of your vehicle is $5,000, a bond valued at 1.5x that amount would be worth $7,500.
However, that doesn’t mean you have to shell out $7,500 to get a title bond. You’re only required to pay a fraction of that amount to secure the bond. Most bonds for average-valued vehicles range from $100-$150 to purchase. If there is a discrepancy in ownership or false documents submitted, then the remaining amount of the title bond will go into effect and you’ll be responsible for paying back the surety company.
Typically, title bonds are purchased from a surety company, such as ProBonds.com. Alternatively, most insurance providers can also issue title bonds for bonded title applications.
TIP: Before purchasing your title bond from a surety or insurance company, VERIFY the bond amount needed in your state. Once issued, surety bonds are nonrefundable.
A title bond is a very powerful document that can grant you ownership over a vehicle. Before doing this process, make sure that bonded titles are accepted in your state. If it’s your car, you deserve a title in your name.
Looking for a title bond quote? Get one from ProBonds.com!
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Do you have a lien on your car title? If you do, you’ll need to get it released by your lienholder to obtain a clean title. What is a lienholder, who are they, and how do you contact them?
If you took out a loan to purchase a vehicle, the lienholder is the company that financed the purchase. They lent you the money to purchase the vehicle and they technically own the vehicle during the duration of the loan until it has been paid off in full.
The lienholder is also called a secured lender because they have a security interest in your vehicle. This means they are first in line to be repaid from any proceeds from selling your car or after an insurance claim has been settled on your behalf if there is an accident or total loss.
If you haven’t been making regular payments, the easiest way to tell if a car has a lienholder is to check the certificate of title. If there is an active lien, the lienholder will be listed above or next to your name on the title. If you don’t have the certificate of title, but the vehicle is in your name, you can contact the DMV to request this information. If the vehicle is not in your name, you may have trouble obtaining this information.
The duration of a lien, or a loan, on a car title, will vary based on the purchase agreements between the buyer and dealer. Some liens are active for as little as 2 years or as long as 7 years. After 10 years on a title record, many DMVs will purge lien records from their system to make room for new ones.
No, you cannot sell a car if it has a lienholder on the title, the lien must first be released by the lienholder. As long as the lienholder is listed on the title, they are considered the owner of the vehicle. You must either get a lien release, letter of non-interest, or get approval in writing from them before selling or trading the vehicle.
When a lien is satisfied by the borrower, the lienholder is supposed to pull the certificate of title, stamp it paid, then send it to the owner listed. Unfortunately, many times the vehicle owner is left to handle this task. To remove the lienholder from your title, first, make sure that your lien is eligible to be removed. Then, locate your lienholder and send them an official lien release request letter and letter of non-interest by certified mail. Once this is received, your lienholder will return the lien release letter or letter of non-interest and you will be able to remove the lienholder from the title at the DMV.
Your lienholder has the power to stop you from selling your car without their permission. When you’ve paid off your loan, it’s important to remove your lien information so that your car is clear to go.
At Car Titles, our extensive clientele includes the esteemed Mannheim Auto Auctions, the nation’s largest and most prestigious auto auction company. Processing millions of vehicles annually on behalf of dealer consignments, Mannheim holds a significant influence over the automotive market. In this post, we delve into Mannheim’s data to decipher current trends and gain insights into the ever-evolving car market.
Mannheim Auto Auctions play a pivotal role in the automotive ecosystem, serving as a vital platform for dealer consignments and sales. Nearly every licensed new and used car dealer engages with Mannheim, either buying or selling cars. This not only highlights the auction’s significance but also positions it as an invaluable source for understanding market dynamics.
In a time marked by inflation and rising interest rates, the automotive market seems to defy conventional economic expectations. Mannheim reports a marginal increase in wholesale used car prices, standing at a noteworthy 10 percent higher than the previous year. This surge comes on the heels of a substantial jump in prices in 2021, showcasing the industry’s resilience.
While there was a slight pullback in wholesale prices at the beginning of 2022, potentially attributed to seasonal and economic factors, the market quickly regained momentum. It’s a testament to the unwavering demand for vehicles, even amidst economic uncertainties. The winter months may have seen a temporary pause, but the fundamental need for cars prevails.
The new car market is still grappling with inventory shortages. Dealerships, faced with empty lots and a scarcity of new cars, turn to Mannheim to bolster their used car inventory. This strategic move ensures that dealers have vehicles to sell, meeting the ongoing demand from buyers.
Mannheim’s extensive inventory sources contribute to the rich data it provides. Dealerships send vehicles to Mannheim that may not align with their inventory profiles. Additionally, fleet companies, rental companies, lease buybacks, and corporate fleets contribute to the large volume of vehicles that pass through Mannheim’s auctions.
What sets Mannheim apart is its unique auction dynamics. Prices are not dictated by the auction house or the sellers; instead, they are entirely driven by the buyers. Bidding wars and competitive offers determine the final sale prices, reflecting the mood and preferences of the auto industry.
Mannheim Auto Auctions serve as a reliable indicator of the automotive market’s pulse. The auction’s ability to adapt to economic shifts, coupled with its diverse inventory sources, makes it a valuable resource for understanding current trends. As we navigate through dynamic market conditions, Mannheim continues to provide essential insights into the world of auto sales.
Share your thoughts in the comments below. How do you perceive the current state of the automotive market? Stay tuned for more insightful updates in our next video!
Did you buy a car with no title? If you have, you’re not alone. Navigating the auto market can be tricky, but it gets even more so when you find your vehicle is missing its title. Whether you’re planning to sell a car without a title or you’re buying a car with no title, it’s imperative to know ahead of time that buying or selling a vehicle without a title is actually illegal in most jurisdictions. Typically, vehicles cannot be registered without a title and if your vehicle cannot be registered, you cannot legally drive it.
However, just because there’s no title doesn’t mean you can’t still get one. The first step in obtaining a title for a car without a title is to determine if the car was legally obtained or if it was stolen. One way to check the history of your car is through the National Motor Vehicle Title Information System (NMVTIS) by searching your car’s VIN through their database. This database not only can tell you if your car was previously stolen but will also tell you if it has ever been junked. If your car’s VIN is found in the NMVTIS record as junk, you may not be able to get a title. If your car’s history is clear and you have the necessary documentation to obtain a car title, here are four methods for title recovery for cars without a title:
A bonded title can be obtained if you have a car with no title and limited documentation. The bonded title process requires the vehicle owner to purchase a surety bond for the vehicle which typically is under $100. The surety bond allows for protection for the lender if someone else were to prove ownership of the vehicle or otherwise invalidate the bonded title. Once you have your bonded title, you can register the vehicle at your local DMV. Be sure to check your state laws as not all states accept bonded titles.
The Vermont title loophole has been used for years as a way for vehicle owners to get a title for a vehicle over 15 years old. Vermont is a non-titling jurisdiction, meaning they do not produce titles for vehicles over a certain year. The loophole is that just about anyone, not just residents of Vermont can use this method if they have a bill of sale and a car over 15 years old. By registering your 15+-year-old car in Vermont, the registration itself is the state’s version of a car title for that age of vehicle. After you register your car in Vermont, you can then transfer the registration to a title in your home state.
Were you the last titled owner of the vehicle? If so, filing for a duplicate title is the easiest way to get a new car title. Simply visit the DMV in the state where you were the last titled owner, provide the necessary documentation and identification, then they’ll reissue you a title. If you’re applying for a duplicate title, please note that you cannot apply for a duplicate title in a state other than the last titled state. For example, if your car was last titled in Florida, but you now live in Colorado, you must contact the Florida DMV to obtain your duplicate title. Similarly, if you were not the last titled owner of this vehicle, this title recovery method will not work.
If all else fails, your county court may be able to help. A court-ordered title is a very valuable method to get a title. It may take some extra steps, but once you have a court order from a judge that declares you the owner of the vehicle, the DMV is required by law to issue you a new title in your name. Use this method as a last resort as the courts will likely require you to attempt to get a title using other methods first.
Using any of these methods may be beneficial to get you a car title, make sure to check with your state and local laws to ensure these methods are valid in your location. The vehicle title provides proof of ownership and if you’re buying a car, getting the title in your name is the best way to ensure your asset is safe. Need assistance getting your car title? Our Title Experts can prepare documents for any of the listed title recovery methods whether you’re selling your car or buying one. Not sure what type of title best fits your situation? Text TITLE to (402) 698-4853 or (402) MY TITLE.
If you’re in the market for a new used car, it’s important to understand what a clean title means versus what other permanent types of title brands mean. Before you buy your next used car, make sure the title is clean to avoid buying a car that is ineligible for a title and for the road.
A clean title means that there are no clouds over the ownership, liens, or permanent title brands. A car with a clean title has never been reported to an insurance company as wrecked, stolen, or in an accident. A clean title car has all of the original parts and has not been rebuilt or reconstructed. When you have a clean title in your name, you are free to sell, trade-in, paint it, or otherwise do what you want with the vehicle.
The term “clean” comes from the fact that you can simply read through the title and determine if anything is wrong with it. You might notice that there are no lienholders on the title or any other information on it other than the owner’s information and the vehicle’s description. This means that everything is good with your vehicle.
When buying a used car from a private seller, it’s important to look over the car title to ensure that there are no title brands or other clouds on the title. What are some common title brands?
A bonded title is actually not a permanent title brand. It is a temporary title brand that is acquired through a bonded title process. It is typically safe to purchase a car with a bonded title, but before that, make sure to get the story from the seller. After a period of 3-5 years, the bonded title brand can be removed to obtain a clean title.
A lien title, or lienholder title, means that the owner has a loan out on the vehicle that has not been paid or properly discharged. If the car title has a lien, the seller cannot legally sell the vehicle because the lienholder is technically the owner. Before a car with a lien title can be sold, the lien must be released by the lender and a clean title must be obtained by the seller to sign over.
A rebuilt or reconstructed title is given usually by an insurance company to a vehicle that has been substantially rebuilt. A vehicle with a rebuilt or reconstructed title can be sold, however, it will have additional inspection and insurance requirements with this type of title brand.
A salvage title is a title brand given to vehicles with an insurance claim loss. These types of losses include major damage, theft, or repair. If a vehicle incurs damage that is more than 60% of the value, it is often branded salvage by the insurance company. Sometimes, in certain states, salvage brand vehicles can go back on the road. However, the inspection process for these vehicles and repair requirements are quite strict and can be more expensive to fix up than the vehicle is worth.
A parts-only designation is typically found on a bill of sale or transfer form, not on a title. However, if a parts-only bill of sale is submitted for vehicle title processing, the title may be issued with a salvage brand or other cloud on the title.
When an insurance company has paid a claim for a vehicle and taken ownership from the insured, they have the option of processing the title as a certificate of destruction. In this case, the vehicle is intended to be destroyed and never to be used on the road or registered. It is unlikely that a vehicle with a certificate of destruction can ever be issued a valid title for transfer.
A vehicle with a certificate of destruction can sometimes appear to be in acceptable condition. The insurance company decides to prevent the car from road use to limit its liability in the event that the car is driven and is involved in an accident at a later date. If it is proven that an injury in an accident is because the car had some existing defect, the injured person could claim that the insurance company should not have let the car go back on the road.
Used cars with a clean title are your safest bet if you’re in the market for a used car, but only when you buy them from a trustworthy seller. While most states have laws in place regarding which brands of titles can be transferred over to new owners, you can never be too careful. It’s always best to know what you’re buying before purchasing it.
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