In last week's post, Buying a Salvaged Car Without a Title, we replied to a question we received about how one would go about getting an untitled vehicle into their name. We also asked for any words of wisdom from our readers who have gone through this difficult process, and were very pleased to get quite a few comments, thank you!
One in particular came from Bill in Colorado, he wrote,
"The hardest title I have obtained was for a 72 Nova, the numbers didn't check out, but it wasn't stolen either. The state trooper that did the inspection, finally found the correct # behind the blower box. I had to buy a bonded title for $100. It's worth the time!"
We know that several states require that a Title Bond be purchased in order to issue a new title...for their protection! Here's how it works. The state will determine the value of the car in question, let's say $5000. The purchaser will then have a bonding service issue a Title Bond and the cost is dependent on the car's history, the length of time the bond is good for and the purchaser's credit history.
The agency issuing the Title Bond is insuring the state issuing the new title, that if during a specified length of time, usually one to six years, if the original title owner appears and wants their car, the new title owner will give the vehicle back or write a check for $5000, regardless of the car's condition.
So before you sign on the dotted line to purchase a title bond, you better be 100% certain, like Bill, that the car wasn't stolen because no matter how much time and money you put into this newly titled car, it can go back to the previous owner without a penny coming your way.
As always, all comments are appreciated.