If you are a New York resident, a bonded title can be an effective way to recover your vehicle title if you don’t have sufficient evidence of ownership.
A bonded title is a type of title recovery method that requires the purchase of a surety bond, also known as a vehicle title bond, to secure the ownership of the vehicle. This is because, in order to receive a bonded title, you must have a major lack of proper documentation. The DMV in your state is essentially taking your word that you are the owner of the vehicle. The vehicle title bond provides security for the DMV to assign the ownership in the event that there is an ownership discrepancy after the bonded title is issued.
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Before beginning your bonded title process, make sure that your vehicle meets the eligibility for a bonded title.
If your vehicle meets the eligibility requirements of a New York bonded title, begin the application process by completing the Vehicle Title Application (MV-82), Odometer And Damage Disclosure Statement (MV-103), and Statement Of Transaction (DTF-802).
The state of New York requires the prior owner to be contacted before a bonded title can be processed. Submit a DPPA request to the New York State DMV or your local DMV office to request the current registered owner information. Using that information, you must send a letter via certified mail with a return receipt alerting them of your intention to obtain a bonded title. Be sure to keep the green return slip for future use. If the letter is returned undeliverable, do not open it, keep it sealed as it will be needed for future evidence.
A written statement is required for you to explain how the vehicle came into your possession. This letter should state the seller, the date of the transaction, the purchase price, and vehicle information. This written statement must be notarized.
Once you’ve completed the required documents, contacted the prior owner, and have your notarized written statement, visit your local DMV with all of the documentation. In addition, bring any other documents related to the vehicle such as a bill of sale, a printed photo of your VIN, and fees for tax, title, and registration. The DMV agent will review your documents and give you a Sales Tax Receipt (FS-6T).
Make copies of all documents for your records, then send all documents plus the Sales Tax Receipt (FS-6T) to the New York State DMV Title Bureau via certified mail. The Title Bureau will review your application and will either send you a title or ask you to post a bond.
If you are asked to post a bond, purchase your title bond from a surety bond provider. New York requires title bonds to be 1.5x the value of the vehicle. This value is typically based on the book value of the vehicle. Most title bonds are required to be around 1.5x the value of the vehicle, however, that doesn’t mean it costs that much to purchase. Most title bonds cost around $100-$150 for average-value vehicles.
After purchasing your bond, submit your bond information to the New York DMV per the instructions in their letter to you. When approved, the New York DMV will mail you your bonded title.
After 3 years of having BONDED stamped on your vehicle title, the bonded title brand will dissipate and you will have a clean New York title in your name.
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Order Vermont Title LoopholeOrder Deceased Owner Title TransferOrder Bonded Title ProcessOrder Abandoned Vehicle ProcessOrder Prior Owner ContactOrder Lien Release Request LetterPGlmcmFtZSBzcmM9Imh0dHBzOi8vYXBwLmFjdWl0eXNjaGVkdWxpbmcuY29tL3NjaGVkdWxlLnBocD9vd25lcj0xOTQ4ODEyNiZhcHBvaW50bWVudFR5cGU9MjMwNjY0MTAiIHRpdGxlPSJTY2hlZHVsZSBBcHBvaW50bWVudCIgd2lkdGg9IjEwMCUiIGhlaWdodD0iODAwIiBmcmFtZUJvcmRlcj0iMCI+PC9pZnJhbWU+PHNjcmlwdCBzcmM9Imh0dHBzOi8vZW1iZWQuYWN1aXR5c2NoZWR1bGluZy5jb20vanMvZW1iZWQuanMiIHR5cGU9InRleHQvamF2YXNjcmlwdCI+PC9zY3JpcHQ+
So what happens if you lose a car title before you transfer it into your name? Well, in that case, it’s like that transfer never even happened. The only people that know that the car title is transferred are you and the person that gave you the title. Although, sometimes the person who sold you the car and signed it over isn’t even the actual owner on paper. So the document of that transfer of title may just be a bill of sale. That’s just a witness to the transaction is not proof of ownership. If that original car title certificate is gone, then that evidence is gone. It’s protection against vehicles being transferred illegally to the wrong owner.
The title certificate is the ownership proof. The DMV will not simply take your word for it because then anybody could show up there and say “Hey I own this car, give me a title in my name!” and you wouldn’t want that to happen to your car.
A title that is signed, but not transferred, is a major liability for both the buyer and seller. To avoid this, take it to the DMV in exchange for a new title as soon as possible.
So how do you transfer a vehicle into your name if it’s a salvage title? Oftentimes when a vehicle has a salvage title, you will not be able to transfer the title or get a new title issued until the vehicle goes through an inspection process. Before a new title can be issued for a salvage vehicle, the DMV requires the vehicle to be inspected to ensure it is safe for the road. Essentially, they’re making sure that the damages that warranted the salvage title brand have been fixed properly and will not pose a safety threat to you or others on the road. So if you have a vehicle title stamped salvage featuring the old owner’s name or old insurance information, the title cannot be transferred to you until that inspection process is followed and approved.
Every state has its own version of a salvage inspection process with some being more rigorous than others. New York, for example, it’s a very difficult state. Some other states are easy. However, after that inspection is done there are typically no more inspections needed and won’t be required if you transfer the title in the future. Check with your state’s DMV before proceeding.
A major part of the inspection process is to make sure that the repairs were done correctly. On top of being done correctly, part of the salvage inspection is to make sure that the parts used are legitimate. The inspector is looking to make sure that no parts were from stolen cars in a chop shop. For example, if your vehicle needed a new front clip, the DMV inspector is going to look to see if you have receipts for where that front clip came from. So if you bought the front clip brand new from a dealer, you have to provide the receipt from that dealer. If you bought it from a junkyard, they’re going to make sure that you have a receipt from that junkyard with the vehicle identification number (VIN) of the donor vehicle so they know that’s not from a stolen vehicle.
The DMV inspector will also ensure the safety features (airbags, antilock brakes, etc.) are operational and the overall condition of the vehicle (no rust, etc.) is in good condition.
If your vehicle has a salvage title, there is very likely no way to get a new title until the salvage inspection process is completed and passed. Before taking your vehicle in for inspection, remember to bring all applicable documents pertaining to the repair of the vehicle. Without the receipts, the vehicle will fail inspection. The process of converting salvage title is possible, but not before a strict inspection by your state’s DMV agency.
If you are an Arkansas resident, a bonded title can effectively recover your vehicle title if you don’t have sufficient evidence of ownership.
If your vehicle meets the eligibility requirements of an Arkansas bonded title, begin the application process by completing the Statement of Facts (10-345) and the Bill of Sale (10-313).
Inspection
The bonded title process requires that all vehicles are inspected prior to the title being issued. To schedule your inspection, contact your Arkansas State Police department. Once your inspection is complete, the officer who inspected the vehicle will complete the Vehicle Verification form for you.
Approval
After your vehicle has passed its inspection, gather all of the documents so far and submit them to the Department of Finance and Administration Office of Motor Vehicles – Bonded Titles. The DMV will take 10-25 business days to process your application.
If approved, the next step is to complete the Application for Vehicle Registration (10-381) and purchase your title bond.
Title bond
The Arkansas DMV will tell you the value of the bond to purchase. This value is typically based on the book value of the vehicle. Most title bonds are required to be 1.5x the value of the vehicle, however, that doesn’t mean it costs that much to purchase. Most title bonds cost around $100-$150 for average-value vehicles.
Once you’ve completed the official documents, passed inspection, and obtained your title bond, submit all of your documents and any state title fees to the Department of Finance and Administration Office of Motor Vehicles – Bonded Titles. They will process your application and return to you a bonded title in your name.
After 3 years of having BONDED stamped on your vehicle title, the bonded title brand will dissipate and you will have a clean Arkansas title in your name.
Congratulations on paying off your car loan! Now that your car loan is paid off, you can apply for a new clean title in your name. With a clean title, you can do with your vehicle as you wish, sell it, trade it in, or simply keep it. Even if you decide to sell your car after paying off the loan, it’s important to make sure that you get your title cleared before doing so. Keep reading to learn how to get your title after paying off your car loan.
Each U.S. state is either a title-holding state or a non-title-holding state. When a car is financed, the lender will hold on to the title for the duration of the loan (non-title-holding) or mail the title with the lien directly to the buyer/owner to hold until the loan is paid off (title-holding).
In non-title-holding states, upon loan satisfaction, the lender will stamp the title as paid and send it to you in the mail with a lien release letter. In title-holding states, upon loan satisfaction, the lender will only mail you a lien release letter.
If you live in a title-holding state and cannot locate your original title upon receipt of the lien release letter, apply for a duplicate title with the DMV in your state. Once you have the title certificate and lien release letter or letter of non-interest in hand, take these documents, along with your ID and any other documents pertaining to ownership, to the DMV to remove the lien and get a clean title.
This tends to be a common occurrence among vehicle owners who have paid off their car loans. If your lender doesn’t send you your title after the loan is satisfied, reach out to them via mail requesting they return the signed title and a lien release letter, or a letter of non-interest on their letterhead. Once received, take the signed title and lien release or letter of non-interest to the DMV office in your state to remove the lien and apply for a clean title.
If your lender goes out of business, this doesn’t automatically mean that your loan is discharged. When lenders go out of business, they will transfer any active loans to another financial institution. Essentially, the loan is still out there, you just have to find it. Start by researching your lender to see if they were bought out. If they were, contact the new lending company to request your title and lien release or letter of non-interest. Additionally, search for your lender in your state’s Secretary of State database to learn about their entity status and whereabouts.
Paying off your car loan is a huge accomplishment, but it can be overshadowed by title trouble with your lender. If you’ve paid off your loan, do not wait to get your title transferred. As long as your lender is still listed on your title, they still have a security interest in your car. If it’s your car, you deserve a clean title in your name.
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