Let’s say you purchase a vehicle from a car dealer, whether it be an online dealer or one with a car lot, and you finance it. However, you don’t finance it through the dealership itself. Instead, maybe you finance it through your credit union or another bank. Now, what happens if the dealer fails to provide a title? What if they don’t have a title because they bought it from an auction and never received one? There are many reasons why a dealer might not have a title, but they are not allowed to sell the car until they possess it. Nevertheless, dealers will often sell the vehicle to make an immediate profit, even if they don’t have the title. Consequently, you may find yourself in a bind. Despite this, does your financing remain valid?
Here’s what happens when you obtain financing from your bank or credit union. The bank or credit union gives the dealer the car’s cash value. For example, if you bought a $25,000 car and financed it through a credit union, your monthly payments might be $450. However, instead of paying the dealer over time, the bank writes them a check as if they had paid in cash. The dealer always receives the full cash value of the car immediately. As a result, your bank is now out $25,000 while you still owe them $450 a month. The bank doesn’t care what the money is for; it was a car loan, and they put out the money expecting to get their payments back. If you never receive a title, the bank is not going to take the loss. In fact, since the bank typically holds the title with a car loan, they may not release the money until they receive the title.
If the bank does not receive the title promptly, they may convert your auto loan into a personal loan. If you read the fine print of your loan contract, it will indicate that if the title is not received within a specified period, such as 60 or 90 days, the bank has the right to convert your auto loan into a personal loan. This can affect you in several ways. Firstly, the bank may raise your interest rate, as an auto loan is a secured loan and, therefore, less risky for the lender. Secondly, the bank may repossess your car. For instance, if your auto loan rate was 7%, but the bank doesn’t receive the title, they may convert the loan into a personal loan and raise the rate to 12%. As a result, your payment, which was $450, may now become $510. If the dealer does not provide the title, they could have liability for both you and the bank, and nobody will assume the liability on your behalf. Thus, ensuring that the dealer has the title before purchasing is crucial.
To protect yourself when buying a vehicle from a dealer and financing it, there are certain steps you can take. Firstly, you should ask the dealer to show you the title. The old title should not have their name on it or someone else’s name because they bought it from an auction or another dealer. It’s okay if the name is different as long as they can show you the actual original title, not a photocopy, digital copy, or something online. They don’t have to give you the title immediately, but they should show you that they have it in-house and in their possession. If they can’t provide the title, this puts you at risk of paying for something you won’t be able to use. Therefore, it’s essential to ensure that the dealer has the title before proceeding with the purchase.
We receive numerous calls from people who purchased a car six months, eight months, or even a year ago and still don’t have the title. Consequently, they cannot legally drive their car because the registration is invalid and their temporary paper plates have expired. As a result, they are constantly pulled over and must park their car. They either paid cash out of pocket or are making high payments for a car they can’t even use. Therefore, it’s crucial to verify that your dealer has possession of the title before signing the contract or handing over your hard-earned money. Don’t take any chances, and ensure that you have a title in hand before making any payments.
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In our business, we deal with various DMVs across the country regularly, and many times they provide valuable information to consumers about how titles work. When purchasing a vehicle, it’s essential to understand what information is required, and reading the DMV’s guidelines can help you avoid title problems. We will discuss some common issues consumers may encounter when titling their vehicle and the DMV’s recommendations for solving them. However, some title problems cannot be resolved, and you may never obtain a title for your vehicle. Therefore, you must exercise great caution.
Let’s look closer at Delaware’s requirements and regulations regarding used vehicle titling, as provided by their titling division. While each state has its own DMV agency and motor vehicle laws, the basic laws and regulations across each state will be very similar.
First and foremost, verifying that the title matches the vehicle you’re purchasing is essential by checking the VIN on the front of the document. Our sales department has had many customers call in with titles that don’t match the vehicle they possess, which creates a significant issue. This means you don’t have a title for your car; the one you received was for someone else’s vehicle. It’s crucial to start from scratch and act as if you don’t have a title at all, as VINs cannot be altered on titles.
Furthermore, ensure you’re not purchasing a flood-damaged, salvaged, or rebuilt vehicle. Although some individuals believe they can pass a salvage inspection, the DMV doesn’t typically approve vehicles with these title brands, as they don’t want such cars on the road. You may lack the necessary receipts, or the vehicle may not meet factory specifications, which would result in a failed inspection. This poses a significant issue.
What if you’re dealing with a homemade vehicle? Sometimes, individuals construct cars from scratch and must obtain a new VIN before attempting to acquire a title. This is a prerequisite – you must have a VIN to make an application for a vehicle title.
If your vehicle has a lien holder, that is crucial to note. Even if the lien isn’t reported on the title, the lien holder has precedence if it appears in the title records. You cannot obtain a title until the lien is removed from the title record. A way to accomplish this is by requesting a lien release letter or letter of non-interest, but it must be addressed before proceeding with anything else.
Another critical point to consider is what’s known as “jumping” or “skipping” a title. What does this entail? If the signature of the person who sold you the vehicle is already on the title, but you’re buying it from someone else, you may be dealing with an illegal dealer or an individual who is not the original owner. This is referred to as a jump or skip title. The seller might be a curb stoner who flips cars without a dealer’s license.
The original owner has already sold the vehicle, so if something goes wrong with that transfer, you won’t be able to locate them. This is a common occurrence – an individual purchases a car from someone who bought it from another person, who purchased it from yet another individual. The title has changed hands, but the record has not been updated. Now you’re attempting to locate the original owner, who is no longer in the picture. This is illegal in Delaware and most other states. You cannot skip a title. Before selling it to someone else, you must obtain a new title in your name after changing the title.
It’s crucial to exercise caution when dealing with vehicles titled in another country. Some cars can enter the US under a DOT or EPA exemption if they’re at least 25 years old. However, this exemption does not necessitate the issuance of a title by the state. It simply exempts the vehicle from various DOT and EPA standards. If the vehicle was not manufactured for the US and does not meet those standards, it can still be imported.
Nevertheless, the state may refuse to provide you with a title and registration, and you may be required to spend thousands of dollars at a federally licensed shop to complete the process. Therefore, just because the car has been imported does not imply that the state must provide a title. Moreover, most states impose a penalty if you fail to change the title within a specified period of time, usually 30 days.
These are some excellent pieces of advice and recommendations from the DMV, thanks to the Delaware DMV. While there are undoubtedly more, these are several of the most frequently asked questions. They’re the same types of questions we hear from individuals who contact us. For example, “I imported the vehicle, but I don’t have a bill of sale, and the VIN number is different.” These and many similar situations involving lienholders arise frequently. Therefore, when purchasing a vehicle, avoiding these issues is critical. However, if you’re already experiencing one of these title problems, our website can provide solutions specific to your situation.
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Welcome to our blog! In our line of business, we regularly engage with various DMVs across the country, gaining valuable insights into the intricacies of vehicle titles. Many consumers can avoid title-related headaches by paying heed to the information provided by the DMV. Today, we’ll explore common problems consumers face when titling vehicles and what the DMV advises to mitigate these issues.
Let’s focus on what Delaware’s titling division recommends and delve into some common pitfalls and suggested guidelines.
Before finalizing a vehicle purchase, always check the front of the title. Ensure that the information aligns with the vehicle you’re acquiring. Mismatched VIN numbers can lead to significant problems, essentially leaving you without a valid title.
Beware of flood-damaged, salvage, or reconstructed salvage vehicles. While some may believe these can pass inspections, the reality is different. DMVs often have stringent criteria for salvaged vehicles, making it challenging for them to pass inspections and be deemed roadworthy.
For those constructing vehicles from scratch, known as homemade vehicles, obtaining a new VIN number is a prerequisite. Ensure you secure this unique identifier before embarking on the titling process.
Having a vehicle with a lien holder is common. Even if not explicitly mentioned on the title, lien information recorded in title records takes precedence. Clearing any liens is essential before attempting to obtain a title.
A critical point of caution involves “jumping” or “skipping” titles. If the seller’s signature is already on the title, you may be dealing with an illegal dealer or an individual not listed as the original owner. This practice is often illegal and can lead to difficulties in tracking down the true owner.
Vehicles imported from other countries may face challenges in obtaining titles. While some exemptions exist under DOT and EPA standards, states are not obligated to provide titles for these vehicles. Timely title changes are crucial, as many states impose penalties for delays.
These insights from the Delaware DMV encapsulate common questions and concerns faced by consumers. Understanding these guidelines can prevent potential title problems and streamline your vehicle titling process.
If you’re already grappling with title problems, worry not! Visit our website for comprehensive solutions tailored to various scenarios. Our expertise extends to resolving title-related challenges, ensuring you can enjoy a hassle-free ownership experience.
In conclusion, when it comes to vehicle titles, knowledge is your best ally. By heeding the advice provided by the DMV, you empower yourself to make informed decisions and navigate potential pitfalls. Whether you’re in the midst of a vehicle purchase or dealing with an existing title issue, the insights shared by the DMV can be invaluable.
If you find yourself with more questions or need assistance navigating the complexities of vehicle titles, don’t hesitate to reach out. Our team at [YourBusinessName] is here to provide guidance and support. Visit our website or contact us directly for personalized assistance.
Knowledge is the key to a seamless vehicle ownership experience. Stay informed, follow DMV guidelines, and enjoy the journey with confidence. Your hassle-free driving adventure begins with understanding and navigating the nuances of vehicle titles.
Welcome to our blog, where we shed light on crucial aspects of vehicle ownership. Today, we delve into a recent incident in Texas that serves as a stark reminder of why buying a vehicle without a title can be a perilous decision.
In Texas, a woman attempted to sell a vehicle at a discounted price, seemingly a great deal. However, the catch was that the vehicle was a rental car. The woman had rented it from an auto rental establishment and was now trying to offload it to an unsuspecting buyer.
One might wonder, “If I buy a car with a bill of sale and it has a clean title, isn’t that sufficient?” Unfortunately, the Texas incident proves otherwise. A title check on this vehicle wouldn’t reveal any liens, as it’s a rental car. Stolen status wouldn’t be flagged either since it was legitimately rented. On the surface, everything might seem in order, but the absence of a valid title poses significant risks to the buyer.
For those contemplating a purchase based on a bill of sale, it’s essential to recognize its limitations. A bill of sale serves as a transaction receipt but falls short in establishing ownership. It doesn’t prove the seller’s ownership or the buyer’s legitimacy. In cases like the Texas scenario, where a rental car is involved, a bill of sale alone would not assist in obtaining a title.
Even if you perform a title check on such a vehicle, it may appear clean – no reported liens, no salvage status, and no back taxes. However, the absence of a legitimate title can lead to a nightmarish scenario.
The moral of this cautionary tale is clear: do not buy a car without a title. While the risk might be lower for inexpensive, old barn finds, it’s crucial to understand that until you hold a government-issued title with your name on it, your ownership is not legally recognized.
For those facing title-related challenges, our website provides an array of tools and resources to assist in the title recovery process. However, the ultimate lesson remains – ownership is not secured until a valid title is issued by the government in your name.
In conclusion, this Texas incident serves as a stark reminder that a seemingly good deal can turn into a financial nightmare without a valid title. Insist on obtaining a proper title at the time of purchase to safeguard your investment and ensure legal ownership.
If you have questions or find yourself in a title-related predicament, our team is ready to assist you. Reach out to us through our website for personalized guidance and support.
Don’t let the allure of a discounted price blind you to the risks of buying a vehicle without a title. Drive with confidence by ensuring you have a valid title that officially recognizes you as the legal owner. Your peace of mind on the road begins with a secure and legitimate ownership journey.
Welcome to another episode of Car Titles, where we unravel the mysteries surrounding vehicle titles and address common questions and challenges raised by our customers. Today, we’ll delve into a series of real customer messages, exploring how these scenarios might resonate with your own experiences. Let’s dive in!
Our first inquiry hails from Illinois, featuring a classic tale of an old truck with a complicated history. The buyer, navigating through a web of transactions involving an old lady, a barn, and multiple bank buyouts, finds themselves stuck with a lingering lien issue. The state of Illinois demands a lien release for a bonded title, posing a significant hurdle.
In such cases, reaching out to the current bank in writing to request a lien release is the initial step. Craft a lien release document, fill it out, but refrain from signing it. Send it to the bank with a return envelope. If successful, you’ll have the lien released. If not, consider a court-ordered title as plan B.
Our second scenario unfolds in California, where an individual holds a title but seeks to register the vehicle out of state, specifically utilizing the “Vermont loophole” to avoid stringent smog inspections. However, this tactic is not designed to sidestep emissions regulations.
The Vermont loophole is intended to provide documentation in the absence of a title, not to evade state-specific requirements. Using Vermont registration to dodge smog inspections won’t hold up. States are aware of this loophole, and attempting to use it for such purposes may lead to legal consequences.
Our third case arises from Missouri, where an individual purchased a vehicle, lost the title before transferring it, and now contemplates obtaining a duplicate title. However, the term “duplicate title” has specific connotations in DMV procedures.
If the original title is lost, the current owner can apply for a duplicate title. However, if you’re the buyer without the original title, explore the possibility of a bonded title. Submitting affidavits, forms, and a surety bond to the DMV can lead to the issuance of a bonded title.
Our final query comes from a person named Sally (or Sully), who found a vehicle dropped off in their yard without a title. They wish to file for an abandoned vehicle title, assuming it’s a straightforward way to claim ownership.
Contrary to popular belief, designating a vehicle as abandoned doesn’t grant ownership rights. In most states, an abandoned vehicle is relinquished to the state, which then auctions it off. Given that the vehicle was given, not abandoned, exploring other avenues for title acquisition is advisable.
These scenarios offer a glimpse into the diverse challenges individuals face when navigating the realm of car titles. If you have your own title-related questions or dilemmas, feel free to call our hotline or email our help desk at [email protected]. We’re here to assist you on your journey through the intricacies of car titles.
As we continue to address real-world title challenges, stay tuned for more videos offering insights and solutions to empower you in your car ownership endeavors. Remember, your questions drive our discussions, and we’re here to guide you through the twists and turns of the car title landscape.
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