You know that selling a car comes with negotiation and paperwork. Transferring the car's title to the buyer when you sell it is essential since this document shows proof of ownership. But what happens if you don't have the title in your possession? While it's more challenging, selling a car without a title is not impossible. Follow this guide to know your options so you can complete the sale safely — and legally.
Importance of a Car Title
man writing on paper by Scott Graham is licensed with Unsplash License
Unfortunately, selling your vehicle isn't as simple as finding a buyer, negotiating the price, and handing them the keys. In most states, you need proof of ownership — usually a title — to sell a vehicle. You can sell a vehicle without a title, but it takes extra effort.
When you're ready to sell your car, having the title is important for the following reasons:
- Proof of ownership: A title is a legal document showing you're the vehicle's rightful owner. Titles vary by state, but they typically include details about the vehicle, its mileage and license plate number, and the owner's information.
- Legal hurdles: In most states, selling a vehicle without proof of ownership is illegal. Even in places where you can sell a car without proof of ownership, you can't register, insure, or drive a vehicle without a title.
- Buyer's reluctance: It's much harder to sell a vehicle without a title since most buyers will be reluctant to purchase one without it. These days, most people understand you need a title to drive a car legally.
Of course, there are perfectly good reasons you may not have the title when you choose to sell your car. For example, a lender usually holds a lien on the vehicle if you're still paying off a car loan. In addition, you may have lost the title, or it may have become damaged. Whatever the reason, there are special considerations to make when selling a vehicle without a title.
Navigating the Path to a Sale
If you're in a position where you're ready to sell your car, but you don't have the title, follow these steps to ensure you complete the sale legally:
Check for Outstanding Loans
If you still owe money on the vehicle, the title might be with the lender until it's fully paid. In this case, contact your lender directly and request a copy of the title. They'll instruct you on the steps you can take to sell the car. Keep in mind that in some states, you may have to hold the title for a set period, such as 30 days, before you can transfer the ownership to a buyer.
Get a Replacement Title
If you've lost the title or it's damaged, you can request a replacement at your local Department of Motor Vehicles (DMV). Reach out to your local DMV for more details on this process. It varies by state but typically requires you to show identification, fill out an application form, and pay a fee.
If the car's been stolen, you can also get a replacement title through your DMV. You might need to show a bill of sale or other proof of ownership. Of course, make sure you call the police first to report the vehicle stolen before you do anything else.
Draft a Bill of Sale
After completing the above steps, you may still not get the title. When this happens, you might be able to draft a bill of sale. Check with your DMV about the regulations of writing a bill of sale. Some states may have a specific form you need to use.
When writing a bill of sale, make sure it includes the same information you'd find on the title, including:
- The vehicle's description.
- The sale price.
- The vehicle identification number (VIN).
- The car's mileage.
- The name and address of both the buyer and the seller.
Notarize the Bill of Sale
In some jurisdictions, you may need to notarize the bill of sale. Even if your state doesn't require notarization, taking this extra precaution is a good idea. Contact a notary who can officially witness the transfer of ownership and notarize the bill of sale.
Seek Legal Counsel
Selling a vehicle without a title can be complex and often includes extra steps and paperwork. For this reason, it never hurts to seek legal counsel during the process. A legal professional can guide you to ensure the sale's legitimacy.
Considerations for Buyers
Are you on the other end of the car sale, trying to buy a vehicle that doesn't have a title? In this situation, proceed with caution. While there might be a reasonable explanation for why the seller doesn't have a title (including the ones mentioned above), you could still face problems registering the vehicle.
If you're considering buying a car without a title, check the VIN to ensure it's not stolen and there are no outstanding liens. You can check the VIN online for free through the National Insurance Crime Bureau.
Whether you're the buyer or the seller, prioritize transparency during the purchasing process if there's no title for the vehicle. Sellers should be upfront with potential buyers about why they don't have the title and tell them how they plan to either get it or draft a bill of sale. On the other hand, buyers should do their due diligence to ask questions to be thoroughly informed about the missing title and understand the potential implications of buying a car without proof of ownership.
No Title? Trade In Your Vehicle in Lancaster, Pennsylvania
If you're ready to sell your car but getting the title sounds like a headache, trade in your car to a dealership instead. At AutoOne, you can sell us your car for cash, and it'll be far easier than completing all the extra paperwork that comes with a no-title sale. We're conveniently located in Lancaster, Pennsylvania, and we serve customers from across South Central Pennsylvania and parts of Maryland. We prioritize a convenient, stress-free automotive experience, whether you're buying a used car or selling your current vehicle. Contact us for more information.