No Title - Scam or Legitimate Business

[Beltzington]

Slightly off topic but I am sure someone on this forum knows the answer.

My widowed sister's SUV quit last month and I am trying help her, she doesn't want any car payments and has a limited budget but enough I am sure I can find a reliable replacement. I have not purchased a used car from a dealership for at least 30 years and was surprised when a used car salesman told me they did not have the title but would send it to her when it was changed over, I immediately thought it was a scam and walked away. Well, today it happened again, the dealership said I would get a bill of sale and the title would be mailed. Is this legal, we will be paying in cash, dealerships where in GA and SC? I would prefer to buy from a private owner but she really wants a typical style and color which limits our options. Appreciate your thoughts.

 

[tractorshopper]

Many used vehicles at a dealership are traded in or purchased elsewhere by the dealer, then resold to the buyer. The titles take time to get updated from the original owner, to the dealer, then to the buyer. If these are dealerships that have been in business for a while, then I'd trust them. They do this for a living. Even if buying brand new, you won't get a title the same day I don't think. It has to be recorded and then generally mailed to you.

If you buy from private seller, you will have to record the sale on the back of the title, then take it to the hwy dept to get it licensed, etc, then they will mail you a new title without the previous owner's name on it.

 

[KennyG]

All states may be unique, but the dealership can't give you a title, the state issues it. A private seller signs the title over to you and you have to take it to the state office which will issue you a new title. The dealership will just send the paperwork in for you. It all sounds normal to me.

 

[Beltzington]

It sounds like I assumed incorrectly the title would be signed over from the dealership to you as in a private sale. I guess my concern is the dealership responsible if there is lien against the vehicle, say unpaid repairs or joint ownership conflicts and the title can't be released? Thanks

 

[kthompson]

It sounds like I assumed incorrectly the title would be signed over from the dealership to you as in a private sale. I guess my concern is the dealership responsible if there is lien against the vehicle, say unpaid repairs or joint ownership conflicts and the title can't be released? Thanks

I understand your concern and no idea on such as repairs but do not think they can place a lien against a car for repair by far the vast majority or for a loan even a title loan.

I would say if you have proper bill of sale you are fine from dealership and agree with all said above. I have sold and bough from individuals, new dealerships and used and all work as has already been said.

But you probably can take the vin number and in SC I think go on line and check for who is owner before you buy. Well you can for a boat any way so would think same is true for a car.

 

[hunterj]

I live in SC. That's exactly how it works, NC, pretty much anywhere buying a new car. Title will come in he mail and already be in your name when it gets there. Completely normal these days.

Don't think they can sell a car that's owed against unless you agree to take over responsibility for it. As for repairs needed I wouldn't by a broke vehicle unless it was going to be a fixer upper project and was dirt cheap. Definitely not something I plan to use as a daily driver immediately.

 

[Qapla]

Most dealerships and used car places make sure that any loans/liens have been satisfied before they accept the car as a trade-in or as a purchase from an auction. If there is money owed at trade in, they add that amount to the new loan for the new car and they pay off any and all loans - that way they get a car they can actually sell.

States issue titles, not dealerships.

 

[George2615]

Agree with most everyone else. In my state whether you buy new or used from a dealer, the dealer usually sells you the vehicle and gives you a temporary registration with either new or your transferred plates if you traded in a vehicle and the state mails you the new title. The temp reg. is usually good for about 90 days to give the state time to process and mail out the new title.
Only time you'd get a title right away is buying from a private party. They sign the title (which is in their name) and hand it to you with a bill of sale then you would have to take it to motor vehicle to transfer the registration. The DMV then will give you plates and a reg. and the state would mail a new title in your name.

 

[Beltzington]

Appreciate the enlightenment, I likely have a negative bias for car salesman as I have never had a good experience in the few times I have purchased a vehicle from a dealership. With a private owner I can at least verify the person selling me the car actually owns it and leave with title and bill of sale in hand. Certainly established dealerships can be trusted but our budget dictates an older car and corner lot resellers so I need to do what has worked for 50+ years and trust my instincts. Thanks.

 

[Gator6x4]

Always be cautious when buying a motor vehicle. Car dealers used vehicles as collateral to obtain money. Banks and lending institutions demand the title before providing money. Depending on how the loan is structure will depend on quick the dealer car get the title back. For example will the entire loan have to be repaid before the title is returned for a particular vehicle, or the title can be returned after the amount loaned on that particular vehicle has been repaid.

NC law makes it a crime to sell a vehicle you do produce a title for showing the mileage on the vehicle at the time it was sold.