How to Buy a Car Without a Title
- Run the VIN number to make sure the car isn’t stolen
- Meet in a public place and bring a friend
- Get a detailed bill of sale from the seller
- File for a replacement title
In addition, buying a car without a title is illegal in many states. Check your state’s laws before proceeding. Always keep this in mind when you intend to replace a lost title after buying the car.
It’s usually much easier to ask the person selling the car to replace the lost title instead of taking it on yourself. Since your name is not on the title that was lost, the process is much more complex.
Stay Vigilant
A car without a title is often a clear sign of a scam. This is a great opportunity for someone to sell you a broken car and disappear as quickly as it happened.
First things first, make sure the car isn’t stolen. Before you even meet for the sale, run the VIN number through a VIN checker like ours linked.
Obtain the VIN by asking the seller to provide it before the sale. If they say no, that’s usually a sign something bad is happening.
If the car runs and drives, ask the seller to agree to a pre-purchase inspection by a local mechanic’s shop. You would both meet at the mechanic and receive any news about broken parts or problems with the car, that way, there are no secrets about the car itself.
Click here for a guide to buying a car.
Problems of Buying a Car Without a Title
In most states, it is illegal to buy, sell, or drive a car without a title, Third Coast Auto Group said.
If you lose your car title, the process of obtaining a replacement can take anywhere from 8 to 12 weeks, depending on the efficiency of your local DMV. This delay could pose several problems for you, according to The Car Connection.
- You can’t get a loan to buy the vehicle
- Your insurance company may refuse to insure it
- The DMV may refuse to give you license plates
- In many states, it’s illegal to drive a car without a valid title
When buying a car without a title, one of the biggest problems is that you can’t get a traditional loan to purchase it. Car loans are issued using the car title as collateral.
You would need to take out a personal loan to cover this expense, using your good credit or another form of collateral, and that’s not always possible or even suggested, LendingTree said.
Make a Bill of Sale
The most critical thing is that you obtain an ironclad bill of sale. A bill of sale is not a foolproof document. In a legal situation, it can go a long way to helping you prove your story, but it doesn’t carry the strength of a car title, regardless of what it says on it, according to Adobe Creative Cloud.
Still, when buying a car without a title, it’s very important that the bill of sale spells out everything, including:
- The VIN of the car in question
- Where the title is believed to be
- Who last possessed the title
- Names of any owners since the title was lost
The minimum information for your bill of sale includes the date, time, and location of the sale, as well as the sale price and the VIN number of the vehicle.
When buying a car without a title, you’ll want to include as many details as possible about why the title is missing and who had it last.
If the person you are buying the car from is not the registered owner, be sure to include any previous owners who are not listed on the records.
During the sale, ask the seller to provide their address and phone number in case you need to contact them later.
Verify this information with the seller’s photo ID, take a picture of their ID, and have them sign and date the bill of sale.
While a bill of sale does not replace a car title, its purpose is to create a legal document that can help establish your rightful ownership of the vehicle in a court of law, IN.gov said.
Can I Buy a Car Without a Title?
Yes, buying a car without a title requires a bit more caution than the usual car-buying experience. Before proceeding, check your state’s laws to confirm that purchasing a car without a title is legal.
Need to buy a car without a title? Click here.
It’s essential to create a strong bill of sale. Be prepared for the possibility of not having the title in your possession for several weeks or even months.
Remember, selling a car without a title often indicates that there may be issues with the title history or the vehicle itself, so make sure to run a VIN (Vehicle Identification Number) check before completing the sale.
Click here for an extensive guide on title issues.
If the seller is unwilling to provide the VIN upfront, that’s a red flag.
Dirt Legal’s in-house title specialists are knowledgeable about title fraud.
We offer quick VIN checks and detailed vehicle history reports, and we can help you obtain a new title and fresh license plates for your car, eliminating the hassle and lengthy process of dealing with the DMV.
Need to replace your title or resolve title-related issues? Click here.
