There are lots of risks that come with buying a car without a title. Although it is possible to buy a car without a title, but you have to be sure of what you are getting into. Make sure you do your due diligence before going ahead, if you spot any dark spot, it is better to let go.
We will take a look at some of the risks that come with buying a car without a title and the things you should consider before signing an agreement with a seller who does not have the title of the car.
It is Illegal
In most of the states in America, it is completely illegal to sell, buy, or drive a car without a title. However, despite this law, people still buy cars without title. The title might have been stolen, damaged, or misplaced, which. If any of these is the case, it is better for the seller to get a duplicate title for the car from the state Department of Motor Vehicle. It is easier for the seller to get a duplicate title than for the buyer to get the title of a car that was bought without a title.
The title is what establishes the legal ownership of the car, you can’t walk up to an officer with a bill of sale and wanting to get a title without first showing the title of the car to confirm you are the true owner. They will ask you questions and might even conclude you forged the bill of sale document. To avoid this kind of scenario, you can try as much as possible to avoid buying a car without title if you can.
A lost title Leads to Other Problems
Car titles take months to arrive, and many states will not issue license plate based on lost title paperwork alone. This means that until you have gotten the title of the car processed, you can’t get a license plate for the car. Even if the car you bought has a license plate, the existing license plate is not registered in your name.
This can attract a ticket for invalid registration if you are stopped, the toll fees or parking ticket goes to the last registered owner. Owning a car without a title means you can’t get a loan as you will be unable to use the car as collateral.
Also, you might be unable to insure the car because it doesn’t have a title. As you will be seen as not the owner of the car. Only the title establishes you as the owner of the car and not the bill of sale.
The Status or History of the Car is a Mystery
Without the title of the car, you are not sure of the history of the car. You don’t know if there is an active lien on the title, or may be the car carries a salvage or flood status. A whole lot of nasty things about the car can be hidden from you without having the history of the car.
It Could be a Stolen Car
The car may have been stolen. You need to run a VIN check to be sure the car wasn’t stolen. If the seller doesn’t give you the VIN of the car over the internet or on phone, see such move as a red flag.
The Seller Could Be a Scammer
It is possible the seller is a scammer and only looking for the next victim. Arrange to meet the seller together with a friend in a public place.
Here are some of the major risks that may come with buying a car without title. Find out more at https://howtogettitleloans.wixsite.com/titleloans/post/how-does-an-auto-title-loan-work-in-california.