When the time has come, and you decide you want to sell your car, there are things you need to check and ensure they’re in order. One of those things, and probably the most important of them all, is the car title. A car title is the proof of ownership, and most buyers will want the title transferred to them during or after the purchase.
However, there are cases where the owner of the car doesn’t have the title. This could be caused by several reasons, like getting lost or a lender keeping hold of the title because of an unpaid loan. This could significantly affect the selling process as the owner will have to pass through many hoops before managing a sale.
What to Do in the Absence of a Title
Even if there’s no title, the sale of the car is still possible. Although, having no title will likely take more time to complete a sale, and there are things you’ll have to do.
These tips will help you sell your car without a title:
- Get A Replacement Title
If your title was lost or stolen, there’s still a possibility of you getting a duplicate title from the local department of motor vehicle (DMV). Before you get a replacement title, you’ll be required to provide some proof of ownership, such as the registration paperwork, vehicle identification number (VIN), and driver’s license.
The DMV can then use these documents to look for data about the car’s ownership before providing a duplicate title after around 30 days. When the replacement is provided, the sale can go on and the transfer made.
- Request Transfer of Ownership
Some states allow the transfer of ownership when selling your car. The DMV can allow the buyer to drive the car by issuing a temporary driving permit. However, in this way, you should ensure the buyer will get a duplicate title and transfer the ownership before the title expires.
Other requirements involved in the transfer of ownership include a new inspection of the vehicle. It should be noted this is only allowed in some states, and, therefore, you need to check with your local DMV before requesting a transfer of ownership.
- Write Up a Bill of Sale
In some states, the bill of sale is all you need when selling old cars. The states have a certain age of cars that they don’t issue titles. If your car falls under this category, you can sell it without a title. However, you’ll need to fill up all the required information on the bill of sale before continuing.
The bill of sale contains information such as the names of the seller and buyer, the odometer number, VIN, and the date of sale. You can also add a notary to the bill of sale to enhance the document’s legitimacy, although it’s not always necessary.
- Register Your Car in Vermont
Vermont is a haven for sellers who lack titles. When you register your car there, you’ll only need to have a bill of sale. Registration in Vermont will serve as proof of ownership, and it’ll be easy for you to sell your car.
This, however, applies to vehicles that are more than 15 years old. You’ll also be required to pay fees and taxes. For vehicles that are less than 15 years old, a title is required.
- Request the Title from a Lienholder
In other cases, the title may not be stolen or lost but is being held by a lender. This happened when the car title is the collateral, or the owner got a loan to buy the car. The seller can still sell the car by negotiating with the lienholder about repayment of the remaining loan.
Once the figure is determined, the seller then negotiates a price with the buyer. If an agreement is reached, the seller can use the acquired money to pay off the lender and get the title released. A title transfer can then be done to the new owner.
Conclusion
As discussed, selling your car without a title is possible. There are some regulations and hurdles that you’ll be faced with, but in the end, you’ll be able to exchange your car for cash. The ease of selling a car varies from state to state. It’s recommended to also read all these regulations when selling within or outside of your state.
The best way to be clear about selling your car is by contacting the local DMV and inquiring about all the guidelines. You should also inform your buyer about the lack of the title so that they’re aware of the inconveniences that may arise. Happy Selling!
