Have you ever wondered: “Can I sell my car without a title?”
If so, you’re not alone. Some people try to sell a car without a title after losing or damaging the document. Others might have never received a title when purchasing their vehicle and didn’t request one, not knowing its necessity.
Generally speaking, selling a car without the title is illegal. Legal risks include:
Car confiscation from authorities
Fines
Civil liability
Criminal charges
Repercussions like fines are increasingly likely if the vehicle’s buyer can’t register the car. However, if you’re currently looking to sell a vehicle without a title, there are several routes you can take to accomplish this while mitigating legal risks.
To walk you through how to sell a car without a title, we’re going to:
Explain a title’s importance
Outline steps to get a new or replacement title
Highlight alternatives to getting a new or replacement title
Sharpen your knowledge on this crucial automotive topic with the rest of our guide below.
Why Do You Need a Title to Sell a Car?
A title, or certificate of title, proves who legally owns a vehicle while noting details about the car.
This information includes:
Owner’s name
VIN (Vehicle Identification Number)
Odometer reading during the sale
Seller and buyer’s name (if applicable)
Weight class
Car loan information
Earlier, we established the importance of titles during vehicle sales, but they’re also used during car registration. The DMV (Department of Motor Vehicles) or the DOT (Department of Transportation) generally issue titles.
However, depending on the state, other government organizations can handle title distribution, such as:
Secretary of state
Department of Revenue
Department of Public Safety
Department of Finance and Administration
Department of Administration
Types of Car Titles
There are four types of car titles: clean, clear, salvage, or rebuilt/reconstructed. A clean title show the car is in good shape, whereas a clear title verifies there’s no outstanding debt. Remembering that a title can be both clean and clear is helpful for recognizing that there are differences between the two types.
Salvage titles may be complex to get insurance for due to poor condition, while a rebuilt or reconstructed car formerly held salvage status. There’s also the less-common Lemon Law Buyback title, which means the vehicle was previously repurchased by the maker under state lemon laws or similar consumer protection programs.
Does a Car Title Prove Registration?
A car title doesn’t prove registration. Instead, you’ll prove registration with a registration certificate. Registration reflects that a car is legally allowed on public roads.
Steps to Sell a Car Without a Title
You can take several steps to attempt to sell a car without a title. Laws for some of these steps can vary by state, so research requirements through resources like your local DMV.
Contact Your Lender
Contacting your lender for a title isn’t restricted by state. If you’re still paying off a vehicle’s loan, your lender should have the title, and it’s legal to sell your car if you haven’t paid off its balance.
If you’re selling a car that’s worth more than the amount you owe, the buyer would pay the lender, and the lender would give any remaining balance from the transaction. In cases where a vehicle is worth less than what you owe, you’d need to pay the lender the difference to proceed with a sale.
If it’s worth less than what you owe, you’ll need to pay the lender the difference, and you can take out a personal loan if necessary.
Request a Duplicate Car Title
Most states offer a title replacement service through their DMV if the title is in your name. Proof of ownership to receive a duplicate car title can include a VIN and personal information. Expect to pay a small fee to obtain a duplicate title. If you bought a vehicle from someone selling a car privately and lost the title before transferring it to your name, try asking the seller to request a duplicate title and sign it to your name.
Replacement titles differ slightly from duplicate titles in that they allow for changes, such as updating owner information or fixing errors.
Bill of Sale
A bill of sale can support the process of a car buyer obtaining a new title or bonded title, especially for some older vehicles that may not have been issued a title when they were first sold. Bonded titles, or title bonds, are a contract between you, a bond issuing company, and the state DMV, ensuring payment by the bonding company if someone else proves the car is theirs.
Certificate of Sale or Transfer
A certificate of sale or transfer can similarly be used to support the process of replacing a title, especially with older vehicles. When applying for a new title through offices like the DMV, you’d also need supporting documentation, just like you would with a bill of sale. A certificate of sale and a bill of sale are two different documents.
Mechanic’s Lien
Mechanic liens are created when a shop isn’t paid for its services, whether or not the vehicle was abandoned. Once a shop takes legal steps like attempting to inform the owner of the lien and waiting long enough, it can give the car to an auction, where the buyer would apply for a new title after purchase. The mechanic shop that gave the vehicle to the auction could also bid on it and resell it.
This route is less common since the car must be sold at auction by a legitimate mechanic business.
Previous Registration
Some states may accept previous registration as proof of ownership for a title replacement alongside documents like a bill of sale.
Additional Alternatives If You Can’t Find the Title
Depending on your state, older cars aren’t the only vehicle types that may not need a title for a sale. Some off-road vehicles and cars not built for highways can be sold without a title.
Let’s explore some additional alternatives that can be commonly overlooked.
Sell to a Junkyard or Scrapyard
Many junkyards or scrap yards buy vehicles without titles to dismantle them for their parts. However, you’ll generally need documents like a bill of sale and other proof of ownership to ensure the transaction is legal. Some states may require a junk title application or bill of sale for scrap metal operators.
Specialized marketplaces
While junkyards and scrap yards don’t operate solely to salvage car parts from vehicles without titles, some online specialized marketplaces are built explicitly for salvaging car parts, and you may prefer to sell off certain components instead of scrapping the whole vehicle since it can be more profitable.
These specialized marketplaces can include:
eBay Motors Parts & Accessories
PartsGeek
RockAuto
Car-Part.com
Someone with less automotive knowledge and an inability to remove specific parts may opt for a scrapyard sale.
Considerations and Risks of Selling a Car Without a Title
Earlier, we discussed some of the legal repercussions of selling a car without a title. Let’s take a closer look at some of these possible consequences so you can attain a fuller perspective and take proper precautions.
Fines linked to selling a car without a title vary by state and fall under civil liability. Criminal charges, such as a misdemeanor or a felony, can occur if the sale is linked to instances like fraud. If someone buys a vehicle without a title and abandons it, the seller may face towing and storage fees. Those with a history of improperly selling a vehicle can have difficulty buying, selling, or registering future cars.
Understanding the legal dangers of title jumping is vital. Title jumping involves someone selling a vehicle without transferring a title into their name before the sale and is illegal in all US states. Motivations for title jumping can include trying to avoid car transfer fees, covering up previous vehicle damage, selling multiple vehicles without a dealer’s license, and illegally selling salvaged cars.
Final Thoughts on Selling a Car Without a Title
While it’s against the law to sell a car without a title, there are several steps you can consider if you can’t get a duplicate title from a resource like your local DMV. Sometimes, your state may allow you to proceed with a sale if the buyer agrees to obtain the title themselves.
Are you looking to sell a car without a title online? In addition to following our guide’s recommendations, use a car value calculator tool, view our car selling checklist, and learn more about working with an auto transport company to help ensure a smooth transaction.
