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I had mentioned the title in your thread on the Ford Escort because sometimes these documents can present big problems in the transfer and registration of a used vehicle. The things I had listed were scenarios that had jumped into my mind. However, I am not now, nor have I ever been a car dealer, so I'm sure there are other possible bad scenarios.
Here's a better explanation of the problem situations that I've encountered over the years of buying used cars and trucks. I'm sure there are others:
1. Divorce - A man or a woman is selling a car and has the title in hand. However the spouse has "skipped" the country and no one knows where they are. The possible problem is that title states that the husband and wife both own the vehicle so both have to sign it to release their ownership.
Another scenario: Grandma, now deceased, gave the car to the person and the title is still in her name.
FURTHER POINT: Keep in mind that, if the title says John Smith or Jane Smith, either spouse can sign but if the title says John Smith and Jane Smith, both have to sign it. In short, make sure the person who hands you the keys and the title are the same person who needs to sign and release the title.
2. The title has to be the real and negotiable title. Sometime banks will issue a non-negotiable title before the car is paid off. Some people are extremely bad bookkeepers and will misplace their real title once the bank mails it to them at payoff.
3. Make sure there are no liens showing on the title as outstanding.
4. A salvage, or rebuilt, title substantially lowers the resale value of the vehicle for its lifetime because it means the car has been wrecked (or otherwise harmed) to the point of being considered a total loss by an insurance company.
Hope this helps.
Most states no longer require notarization on title transfers, so any signature that appears genuine is generally accepted by the DMV as legitimizing a title release. The presumption is that the title is kept in a safe place by the owner, not in the car, so a person who walks into DMV with what appears to be a signed title is pretty much taken at face value. If the car turns up later as reported stolen, then a closer look can be taken at the document.
The presumption is that the title is kept in a safe place by the owner, not in the car, so a person who walks into DMV with what appears to be a signed title is pretty much taken at face value. If the car turns up later as reported stolen, then a closer look can be taken at the document.
Thanks for adding that. I just didn't want to say that to an obviously inexperienced used car buyer. Sometimes you have no other options but to sign grandma's signature on a title unless you wish to jump through a thousand bureaucratic hoops.
BTW, I've seen people keep a title in a glove box. Bad, bad, bad idea folks!
When you first take the title and insurance proof into the DMV (or whatever they call it in your state) you'll also have to pay the taxes on the value of the vehicle. Obviously that varies by state.
So after you buy the vehicle, the initial cost is a little higher because of the tax. I have three (inexpensive, used) vehicles and my annual registration costs from $64 to $119. Here, the registration runs from the car owner's birthday to birthday. In other states it runs from when you purchase and title the car.
In Michigan you can opt for an extra $11 per year which gets you into every state park in the state. I add this option on each of my vehicles but it's not mandatory.
when i paid off the bank loan on my 92 tercel in 1996, i received a letter from the bank stating that the loan was satisfied and that i did not need to buy a title, i could simply use the letter in lieu of the title
when i donated my tercel i furnished the charity with the letter as i never bought a title
That's my experience in both PA and MD. I would imagine most states are similar.
Actually in Maryland the owner of the car gets the title and the bank gets a lien certificate. Once the lien is satisfied they are SUPPOSED to send you the lien certificate and you can decide to either keep it with the title (which shows the lien holder) or take both to the MVA and have a new clean title issued (for a fee)
When I was stationed in Virginia and bought a car with a loan from the credit union I had a hard time getting them to understand that they didn't get the actual title to keep in their vault.
Actually in Maryland the owner of the car gets the title and the bank gets a lien certificate. Once the lien is satisfied they are SUPPOSED to send you the lien certificate and you can decide to either keep it with the title (which shows the lien holder) or take both to the MVA and have a new clean title issued (for a fee)
When I was stationed in Virginia and bought a car with a loan from the credit union I had a hard time getting them to understand that they didn't get the actual title to keep in their vault.
You read it closer than I did. I guess I was responding more to the lien release.
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