Categories: Auto Insurance

You Can Sell a Vehicle Without a Title – Here’s How

Once you decide to sell your car, the transaction requires the transfer of title upon sale. This rule is non-negotiable as only the possession of the car’s title can serve as legal proof of new ownership. But what can you do if the title vanished? If the deal is approaching and you suddenly discover that your title is missing, it’s not a valid reason for the deal’s refusal. The bill of sale can serve as sufficient documentation for the car sale – if you agree that the new owner will get the new title or wait for you to restore yours.

So, you can use a fillable template for your bill of sale and proceed to sell your car; it’s all legal. Here we cover the details and legal intricacies of making such a deal legal and avoiding any possible trouble.

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What Is a Title?

The car’s title is the only legal proof of its legal ownership. It is the document provided by your local DMV with the car’s model, year of manufacture, VIN, and other technical specifications. The title also contains your name on it, proving that you’re the only legal owner of the vehicle. This document serves as a record of vital information about the vehicle’s history, such as its previous owners, a record of suffered damages in car accidents, and ownership change dates.

What Is a Bill of Sale?

A bill of sale is a contractual arrangement between a seller and a buyer completed if the deal is private (i.e., involving no dealers). However, it can only prove the purchase – the transaction performed upon mutual agreement of two parties. If a police officer stops you on the road and asks for documents, the bill of sale won’t serve as sufficient proof of ownership.

The Evils of Title Jumping

As soon as you realize that the title is missing or you come across an advertisement with the seller trying to sell the vehicle without a title, it would be best to consider all legal consequences. First, it is essential to keep in mind that title jumping, i.e., car ownership change without proper title registration, is illegal across the USA. Some unfaithful dealers do this to avoid duplicate taxation or sales fees (especially if they buy a vehicle for a quick resale). Still, you should exercise caution with such instances as you can become an unwilling accomplice in this crime.

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The easiest ways to get your title restored include:

Turning to your DMV for a duplicate title
Requesting a duplicate from the bank (if your car was bought with a loan)
Registering the title as “lost” and getting a temporary DMV note about this

But in some cases, restoring the title is simply impossible. This is true for titles of cars over 25 years old, for which many states don’t issue titles at all.

How to Sell a Vehicle Without the Title: Your Essential Guide?

If you’re in the midst of a vehicle sale or facing issues with title restoration, you can still proceed without the title.

For older vehicles, consider contacting local junk buyers or salvage yards. Even though most junk buyers require titles, you can still make a deal if you provide alternative proof of ownership, such as registration and a license.

When selling older cars, particularly those manufactured before 1975, a bill of sale can suffice if titles weren’t issued in your state until later. Use state-approved forms and get the bill of sale notarized to make it legally binding.

While awaiting a duplicate title, you can proceed with the sale using temporary documentation. Complete a Certificate of Title or Application for Duplicate or Paperless Title, depending on your state’s requirements. This temporary paperwork can serve as proof of ownership and facilitate the transfer to the buyer.

If the title is held by your bank due to an outstanding loan, first contact the bank to determine the payoff amount. Once the loan is settled, you’ll receive the title back. You can then transfer it to the new owner.

By following these steps, you can successfully organize a vehicle sale even without the original title.

Final Considerations

To sell a vehicle without a title is rare and risky. Most buyers are hesitant to purchase such a car, even if priced attractively. They often suspect that the vehicle might be stolen or involved in a serious accident.

Instead of struggling to sell a car without a title, consider obtaining a duplicate title. Visit your local DMV and request a duplicate. This process is quick and inexpensive, and it makes the sale much safer and more transparent for both you and the buyer.

Getting a duplicate title is straightforward. The DMV will issue one for a small fee, which resolves concerns about the vehicle’s history and ownership. This approach not only simplifies the selling process but also builds trust with potential buyers.

John Otero

John Otero is an industry practitioner with more than 15 years of experience in the insurance industry. He has held various senior management roles both in the insurance companies and insurance brokers during this span of time. He began his insurance career in 2004 as an office assistant at an agency in her hometown of Duluth, MN. He got licensed as a producer while working at that agency and progressed to serve as an office manager. Working in the agency is how he fell in love with the industry. He saw firsthand the good that insurance consumers experienced by having the proper protection. John has diverse experience in corporate & consumer insurance services, across a range of vocations. His specialties include Major Corporate risk management and insurance programs, and Financial Lines He has been instrumental in making his firm as one of the leading organizations in the country in generating sustainable rapid growth of the company while maintaining service excellence to clients.