When you’re buying a car from a dealership, should you sign a power of attorney? A power of attorney is a legal document that is designed to grant another individual the authority to sign certain documents on your behalf. In the context of car dealerships, a power of attorney gives the dealership the authority on your behalf to apply for a title, place a lien, and sign any other documents regarding the titling and financing of the particular vehicle.
Signing a power of attorney with a car dealership may actually be beneficial in many instances. In the event that you are buying a car out of state or from a distant dealer, you will likely not be present to sign additional paperwork that may have been missed or to resign documents that may have errors. A power of attorney can allow the dealer to handle all of these details for you. This is especially helpful if you live in an area where there are limited dealerships, and it’s more convenient for you to buy from one far away. However, it’s important to note that this signature gives the dealer power to do anything that needs signing in relation to your vehicle purchase. You’ll want to make sure that you’ve read any documents they present to you thoroughly before signing this document.
While power of attorney shouldn’t be taken lightly, it’s very commonly used by dealerships as a convenience to its customers. By signing a power of attorney with a dealership, they can obtain all of your tag and title documents on your behalf to keep you from having to go to the DMV. They’ll also sign the original title over to you and then process the paperwork so you can drive off and enjoy your new car or truck. For most people, this is simply a matter of convenience, but there are some things that you should take into consideration before signing any documents.
Do they have a good, longstanding reputation with their community? While a brand new car dealership isn’t a red flag by itself, it could be if it’s in combination with other factors. For example, all vehicle dealerships have to be licensed in their state or jurisdiction. If they’re not licensed, or claim licensing to be in progress, do not sign a power of attorney.
If you’re signing a power of attorney, it’s important to know who is behind the dealership with this authority. You can research any business through your Secretary of State’s website, or the Secretary of State’s website in the state where the dealership is located. Most SoS databases will provide business names, addresses, principal names, registered agent names, and annual filings. With this information, you can cross-check the history of the owners and directors.
Most dealerships request that you complete a power of attorney for your and their convenience, but it’s important to know that it is not required. You are not required to sign away power of attorney to a dealership if you do not feel comfortable doing so. If you trust the dealership and would like to have this convenience, then it is up to you to decide if the power of attorney is necessary.
A power of attorney can be a great convenience in certain situations, but it is not required. Before signing a power of attorney, make sure you thoroughly read through the fine print and conditions of the document. If you are concerned about signing a power of attorney, consider getting legal advice before proceeding. The dealership may be asking for power of attorney, but you have the power to approve or deny it.
If all other methods of title recovery fail, you may be required to obtain a court-ordered title. If the vehicle’s title is missing, it’s too new for the Vermont title loophole, is not eligible for a bonded title, or current ownership status does not match the correct owner, obtaining a court-issued title is required for transferring the vehicle. The main purpose of the court-ordered title is to establish ownership rights in a vehicle that is missing a title, or one that doesn’t have a clear chain of ownership.
Getting a court-ordered title for a vehicle is different from getting a regular title through the DMV. The process can vary greatly from state to state and county to county. However, there are similarities across all state’s procedures. Here are the 5 general steps to obtain a court-ordered title:
To get an order for a court-ordered title, you must first file a petition with the court. In some states, this is done in probate court because cars are considered personal property under the jurisdiction of probate law. In other places, you may need to file in small claims court or district court.
The petition should be as thorough as possible, including all available information from your research on who owned the car before you. There is not a standard type of petition or template to follow when filing. Before filing your petition, get legal advice on the proper formatting and contents.
Since the original certificate of title is not available, you’ll need to contact the current registered owner and lienholder of the petition for vehicle title. Driver records are private information that is protected by the DMV under the Driver’s Privacy Protection Act. To obtain this information from the DMV, you’ll need to submit your state’s DPPA request form and state your reasoning for the request. If approved, the DMV will provide you with the registered owner and lienholder information.
Each state will have different timeline requirements for notifying the registered owner and lienholder of the petition for the court-ordered title. Using certified USPS mail, send the registered owner and lienholder an official notice. The registered owner and lienholder will be provided a period of time to come forward to claim the vehicle, typically 30-60 days. After this time period with no response, you may proceed with the next steps of the process.
Once you’ve filed your petition, contacted the registered owner and lienholder, and completed any additional tasks required by the court, schedule a hearing with the judge to review your case. At this hearing the judge will determine the validity of the case and if it warrants a court-ordered title.
If you are granted ownership via a court-ordered title, the final step is to take the court order to the DMV to apply for a new certificate of title. The court order provided by the judge will require the DMV to issue you a new title with your name.
A court-ordered title is a time-consuming method of title recovery, but it is a valid option if all other methods fail. If it’s your car, you deserve a title in your name. CarTitles.com takes the hassle out of applying for a title for your vehicle. Our team of title experts can help prepare your paperwork for any title method provided.
If you’ve paid off your vehicle loan, how do you obtain a new clean title from your lienholder?
When you borrow money to buy a car and use the car as collateral, your creditor places a lien on the vehicle. The lienholder’s name appears on the title along with the owner of the vehicle. If you’ve ever financed a vehicle, you will have a lienholder. The lienholder is listed on your vehicle title as the owner along with your name because they have lent you the money to purchase the vehicle and the debt has not yet been paid back. Once the debt is paid back in full, the lienholder is required to stamp your title as paid and mail it to you.
Unfortunately, not all lienholders are made the same. Frequently, vehicle owners will have to take the title process into their own hands.
The easiest way to release a lien on your vehicle title is to contact the lienholder directly and request that they send you a written lien release. The lienholder is the only authorized agent to release the lien from the title. If the lienholder doesn’t reply within twenty-four hours of your initial request, try contacting them via mail.
Using online sources and your state Secretary of State database, research the lienholder’s primary address along with any additional addresses you may find (principal address, mailing address, other locations, etc.). Using certified USPS mail to the official addresses, send your lienholder your state’s lien release request form along with a letter of non-interest. If your lienholder is no longer interested in pursuing the lien against the vehicle, a letter of non-interest is sufficient from the lienholder in absence of a lien release letter.
Before sending the forms, ensure that your portions are completed and notarized if needed. Sending the forms completed may result in a higher likelihood of a response.
A title holding state means that this particular state requires that the lienholder hold the title until the loan is paid off. Most states in the US are title-holding states. Non-title holding states will send the vehicle title with the owner’s name and lienholder’s name directly to the vehicle owner to hold until the loan is paid off.
There are currently nine non-title holding states. They are:
In order to obtain a clear car title, you must first obtain a lien release or letter of non-interest from your lienholder or lender. The steps above are a general overview, the processes for each state may vary slightly depending on the jurisdiction and the lienholder. When contacting your lienholder for a vehicle lien release, make sure that you are completing the forms correctly. In most states, submission of a fraudulent lien release is considered a felony.
If it’s your car, you deserve a title in your name. CarTitles.com takes the hassle out of applying for a title for your vehicle. Our team of title experts can help prepare your paperwork for any title method provided and assist you in obtaining a vehicle lien release.
Click here to get started on your vehicle lien release process!
Buying a used car is an excellent way to get a great vehicle at a fraction of the price you’d pay for a brand-new model. But when you’re buying directly from an individual, rather than from a dealer, there are extra steps involved in the process.
Here are six tips to help make your search for a used car easier and safer:
Not only is it required to obtain a bill of sale from the seller, but the bill of sale is also the second most important ownership document after the vehicle title. The bill of sale should accurately and explicitly state the vehicle details, the seller’s name, purchase price, the buyer’s name, and the date of the transaction. A bill of sale by itself will not get you a vehicle title, but it is almost always the first step in the process. By not obtaining a bill of sale at the time of purchase, you have no proof that you’ve purchased the vehicle which leaves you with no legal right to ownership.
In many states, a bill of sale can be handwritten or typed as long as it includes specific components. Before obtaining a bill of sale, check with your state’s department of motor vehicles or check out our article How To Write A Bill Of Sale.
The vehicle identification number (VIN) holds all of the details about a vehicle including its year, make, and model, as well as where it was manufactured and the type of engine it contains. The VIN will also tell you if the vehicle has ever been in an accident, stolen, salvaged, flood-damaged, junked, and other valuable information. Before purchasing a vehicle, check the vehicle’s VIN against the NMVTIS database resources. VINs that are entered into the NMVTIS database are considered junk or salvage and not eligible for a title.
The seller may say that everything is in working condition, but don’t just take them at their word. Whether it’s your regular mechanic or a friend in the industry, have an experienced mechanic take a look at the car before purchasing it. Your mechanic will be able to look at the vehicle with an unbiased opinion and alert you to any current or potential future problems. Even if everything checks out, bringing along a professional will help give you the peace of mind you need to know you’re not purchasing a lemon.
This is often where things get difficult. The vehicle title is the most important document regarding vehicle ownership and this original document is required to transfer ownership. The only person who is authorized to sign over a vehicle title is the individual listed as the registered owner on the front of the original certificate of title. The only exception to this is if there is a power of attorney.
If the seller doesn’t have the title ready at the time of purchase, this should be considered a red flag. If the seller is not the individual listed on the title and a power of attorney is not involved, this is also a red flag. If a seller were to sign over a vehicle title to you when they were not authorized to do so, the DMV will not issue you a title and it would trigger an investigation into the vehicle ownership.
Always get the original valid certificate of title at the time of purchase. Make sure that the person signing the certificate of title is the person also listed on the front of the title as the registered owner. If you do not get the title at the time of purchase, it will be up to you to locate the seller afterward to obtain a duplicate title or use a different method of title recovery.
First, for your safety, make sure to bring a friend or family member with you to the transaction. Choose a meeting place that has a security camera and plenty of people around so that you can feel safe during the transaction. The person you bring along with you can serve as a witness to the transaction and help you decide if the vehicle is really right for you. Additionally, they may provide a different perspective that helps you in your evaluation of the vehicle.
Buying a new used car is a really exciting purchase, but it shouldn’t be taken lightly. Before buying a used car, remember that it’s more than just a transaction, it’s a legal transfer of an asset. Make sure that your transaction includes all of the necessary research and documentation so that you can feel confident about your next used car purchase.
To get a new vehicle title, you will need to file for a lost title or use a method of title recovery. The vehicle title is the most important document for a vehicle and provides legal proof of ownership. Depending on your situation, this article will help you understand how to get a new title.
A lost title is also more commonly known as a duplicate title or a replacement title. A lost title is a vehicle title that was previously titled in your name, but the certificate has been lost, damaged, destroyed, or stolen. A lost title or duplicate title process requires that the individual applying for the title must be the registered owner in the DMV database. If you were not the last titled owner, you are not eligible for a duplicate or replacement title.
If you were the last titled owner, you can apply for a lost title or duplicate title with the DMV in your state. Most state duplicate title fees range from $2-$20 for a new certificate of title. Complete an application for a duplicate title in your state, pay the applicable fees and provide the proper identification documents.
Duplicate titles can only be issued in the state where the vehicle was last titled. For example, if you last titled your vehicle in Oregon, but now live in Colorado, you must contact the DMV location in the Oregon county in which the vehicle was last titled to obtain a duplicate title.
Title recovery is necessary when you have come into possession of a vehicle and did not receive a vehicle title at the time of purchase or lost the title before it could be transferred to your name. Title recovery uses legal methods allowed by the DMV in your state to get a new title for you in your name when you are lacking sufficient evidence of ownership. Each state determines the title recovery methods that are allowed by law.
There are over 22 different title recovery methods available. The title recovery method that is best for your vehicle situation will depend on the following factors:
The Vermont title loophole is a popular title recovery method used by out-of-state residents to obtain a vehicle title for vehicles model 15 years old or older using a bill of sale. Vermont is a non-titling jurisdiction, meaning the state does not produce titles for vehicle models older than 15 years old. However, these vehicles will receive a vehicle registration which in Vermont is equivalent to a vehicle certificate of title. After receiving this title equivalent, out-of-state residents can use the registration as evidence of ownership to transfer to a title in their state.
Looking for more information? Check out our article Top 5 Tips for Using the Vermont Title Loophole
A bonded title is a method of title recovery that requires you to obtain a surety bond, also known as a vehicle title bond, to secure ownership of the vehicle. The surety bond serves as collateral in the event that there is a discrepancy in the claim of ownership. Not every state allows for bonded titles. If your state does not accept bonded titles, you may be eligible for a bonded title through Vermont.
For more information on bonded titles and requirements, check out our article What is a Bonded Title?
If you are able to contact the prior owner of your vehicle, you can request they apply for a duplicate title and transfer it to you. If you know the prior owner, this would be a direct way to obtain a new title, as long as they’re willing to cooperate. The prior owner is not required to obtain a duplicate title and sign it over to you, but it would be a good idea for them if they did. By not signing over the vehicle title, the prior owner is still on the hook for any legalities that happen to the vehicle.
If you are unable to locate or contact the prior owner, you may have to proceed with a different method of title recovery.
If the last titled owner of your vehicle is now deceased, each state has a process to transfer the title from a deceased owner. However, in most cases, the applicant will need to prove familial relationship to the vehicle owner or have affidavits signed by living heirs to the estate.
Before using this title recovery method, get legal advice from a qualified legal resource or lawyer. For more information, check out our article How To Transfer Lost Title From Deceased Owner.
If it’s your car, you deserve a title in your name. CarTitles.com takes the hassle out of applying for a title for your vehicle. Our team of title experts can help prepare your paperwork for any title method provided.
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For as little as $159 for most processes, we will save you the headache and prepare all of the car title paperwork needed to get you a new title. Simply choose the title recovery method you’d like to use and we’ll get started!
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