Introduction to the topic: What to do if a car dealer doesn't provide a title after you purchase a vehicle.

Common scenarios:

• Buying a vehicle from a dealership (online or physical).
• Financing through a credit union or bank instead of the dealership.
• Potential issues with the dealership not having the title.

Reasons a dealer might not have a title:

• Acquiring the vehicle from an auction without obtaining the title.
• Selling the vehicle prematurely for profit without securing the title first.

Impact on financing:

• The bank or credit union pays the dealer upfront for the vehicle.
• If the dealer doesn't provide the title, the bank or credit union may consider your loan as unsecured.
• Possible conversion of your auto loan into a personal loan if the title isn't obtained within a specified timeframe (e.g., 60-90 days).
• Consequences of this conversion, such as increased interest rates (e.g., from 7% to 12%).

Importance of verifying the title:

• Buyers should ensure the dealer shows them the original title, not a photocopy or digital copy.
• Understanding the risks of purchasing without verifying the title.

Real-life examples:

• Cases where buyers are left without titles for months, affecting their ability to drive or register their vehicles.
• The financial burden of making payments without the ability to use the vehicle.

Conclusion: Always verify that the dealer has the title in their possession before completing the purchase or signing any agreements.

Introduction: Discussing the dangers of purchasing a vehicle without a title, illustrated by a recent incident in Texas.

• Case Example:
  • A woman attempted to sell a rented vehicle without a title at a discounted price.
  • The car was rented from an auto rental company, not legally owned by her.
• Common Misconceptions:
  • Buyers may think that a bill of sale is sufficient and that a title check confirms legitimacy.
  • Title checks may not reveal any liens or theft since the car was never owned by the seller.
• Title Validity:
  • Importance of the Title:
    • Buyers must receive a valid title at the time of purchase.
    • The title must match the seller's name and be properly signed over.
• Risks Involved:
  • Without a title, buyers risk losing their money.
  • A bill of sale is just a receipt and does not prove ownership or that the seller is the rightful owner.
• Consequences:
  • If someone purchases the vehicle without a title and later discovers it’s a rental, they risk losing their investment.
  • The rental company will reclaim the vehicle, leaving the buyer with no recourse to recover their funds.
• Final Thoughts:
  • Avoid buying vehicles without a title, especially newer or more expensive cars.
  • Older, cheaper vehicles may carry a lower risk, but the lack of a title still poses significant concerns.
• Resources:
  • Visit our website for tools and resources to assist with title recovery.
  • Remember, you are not a legal owner until you have a government-issued title in your name.

Moral of the Story: Always ensure you have a proper title to protect your investment when buying a vehicle.

DMV Guidance on Vehicle Titles

• Tips on avoiding title issues through DMV-provided resources
• Importance of properly signed titles, import rules, and bills of sale

Common Title Problems Consumers Face

• Unsolvable title issues and the need for caution in certain states (e.g., Delaware)

Title Verification Tips

• Ensure the title VIN matches the vehicle’s VIN
• Avoid purchasing flood-damaged, salvaged, rebuilt, or reconstructed vehicles

Homemade and Salvage Vehicles

• Requirements for VIN issuance on homemade vehicles
• DMV challenges with salvaged vehicles due to inspection standards

Lien Holders and Title Transfer

• The importance of clearing liens before title transfer
• Liens can prevent new titles until cleared from records

Avoiding Title Jumping and Skipping

• Risks of buying from “curbstoners” or dealers without proper licensing
• Consequences of skipped or jumped titles, such as tracking original owners

Imported Vehicles and Title Limitations

• Exemptions for DOT or EPA standards on 25+ year-old imports
• Additional steps required for certain foreign vehicles to get titled

State Penalties and Title Change Timelines

• Importance of changing title ownership within state-specified timeframes, often 30 days

Resources for Title Problem Solutions

• Visit our website for more information on resolving title issues