No Title - Scam or Legitimate Business

[orezok]

Generally when you sell a car to a dealer, you have to turn over the title to them after signing it off. I would ask the dealer to see the title they received to assure yourself that it is an original title. That title will probably also show if there is a lien holder and if the lien holder has signed off.

 

[Beltzington]

Wow - this discussion just did a 180. So the dealer should have the title in their possession? I understand the state manages registration but it did not make sense to me why they did not have a title in hand on a previously owned vehicle. I did tell both salesman I wanted to see the title and was given weak information as why they did not have it.

 

[joefromga]

Call a new car dealer that also sells used cars and ask them. Someone old in the area that you can trust.

 

[Omega Woods]

Wow - this discussion just did a 180. So the dealer should have the title in their possession? I understand the state manages registration but it did not make sense to me why they did not have a title in hand on a previously owned vehicle. I did tell both salesman I wanted to see the title and was given weak information as why they did not have it.

Not necessarily. I bought a car six months ago in FL. The dealer had bought it from an auto auction and didn't have the title. He sent me the title two weeks later. There was an issue with the title from the original owner trading it in to a dealership on a new vehicle.

Long story short, I called the dealer and sent all the paperwork back. He fixed everything and sent it back to me and all was well.

Licensed auto dealers answer to the state. State boards have no sense of humor when it comes to jerking around consumers. If they sell a car, they can't hide title flaws from you since you'd have recourse through the courts and the licensing board and they'd get fined and/or lose their license. I'd be wary of potential issues with the vehicle itself, but not the paperwork for this reason.

 

[George2615]

Wow - this discussion just did a 180. So the dealer should have the title in their possession? I understand the state manages registration but it did not make sense to me why they did not have a title in hand on a previously owned vehicle. I did tell both salesman I wanted to see the title and was given weak information as why they did not have it.

The dealer does not have title in hand because they do not title a used vehicle in their name. When someone trades in a used vehicle with title that title goes to the state with the dealers paperwork. Dealers fill out a separate form for the state that they took the vehicle in on trade and must show proof to the state any liens (if any) on the title have been paid off. Then they can resell the vehicle. A legitimate dealer cannot take a car in on trade, resell to you and hand you the previous owners title. That's called jumping title. The state would have no record there they were involved in the transaction at all. If a dealer did jump title the state would assume you bought it directly from the previous owner. They have to have the proper paperwork for the state.

 

[Beltzington]

Not necessarily. I bought a car six months ago in FL. The dealer had bought it from an auto auction and didn't have the title. He sent me the title two weeks later. There was an issue with the title from the original owner trading it in to a dealership on a new vehicle.

Long story short, I called the dealer and sent all the paperwork back. He fixed everything and sent it back to me and all was well.

Licensed auto dealers answer to the state. State boards have no sense of humor when it comes to jerking around consumers. If they sell a car, they can't hide title flaws from you since you'd have recourse through the courts and the licensing board and they'd get fined and/or lose their license. I'd be wary of potential issues with the vehicle itself, but not the paperwork for this reason.

Good to hear from someone who actually experienced what I am concerned about, glad it worked out well for you.

 

[Beltzington]

The dealer does not have title in hand because they do not title a used vehicle in their name. When someone trades in a used vehicle with title that title goes to the state with the dealers paperwork. Dealers fill out a separate form for the state that they took the vehicle in on trade and must show proof to the state any liens (if any) on the title have been paid off. Then they can resell the vehicle. A legitimate dealer cannot take a car in on trade, resell to you and hand you the previous owners title. That's called jumping title. The state would have no record there they were involved in the transaction at all. If a dealer did jump title the state would assume you bought it directly from the previous owner. They have to have the proper paperwork for the state.

Thanks George for an excellent explanation to what is apparently a fairly simple transaction. I have never understood why so many employees don't learn the basic processes of their jobs. Most likely a Business Manager takes care of all the paperwork and the sales people just to lazy or dense to ask.

 

[Midniteoyl]

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

The problem is that dealers dont have to change the title into their name. So they have the title, but its in the previous owner's name so they cant just sign it over to you. If fact, the car could have went through several dealers before this one, and the title would have followed but never actually been changed. That happens when its sold to a private buyer and the paperwork is completed at the State.

 

[George2615]

Thanks George for an excellent explanation to what is apparently a fairly simple transaction. I have never understood why so many employees don't learn the basic processes of their jobs. Most likely a Business Manager takes care of all the paperwork and the sales people just to lazy or dense to ask.

Training of sales people depends on the dealer. At the dealership where I usually buy the salespeople are very knowledgeable and explain every piece of paperwork. They don't want to make a paperwork mistake which could cost them their job. After the sale the Business Mgr. processes the paperwork then has a runner go to DMV for all the transactions each day. Smaller dealerships may not have a Bus.Mgr. or go the DMV every day. I did buy a used vehicle last year from a small (Father / son) dealership and they were also very knowledgeable, quick, and very trusting. I offered a cash deal purchase on a Thursday afternoon with no down payment even though I offered one. Other than a handshake, he did not know me and had no money in hand. He called me the next morning at 10AM to come pick up the vehicle. I arrived, paid in full and he handed me the keys and paperwork. He had already gone and obtained the plates and registered the car for me. That was a lot of trust on his part. Not all dealers would do that and I have already recommended him to 4 other friends who purchased from him.

 

[radioman]

hmm here in nys, the title takes forever to come in with new owner name on it. when dealer takes a used car in to sell, they are not going to sit on it till a title comes in their name then retitle it in buyers name. when i buy used from dealer, they always do the registration paperwork with DMV and DMV will send new title to me, not the dealer. i am pretty sure this is whats happening with you guys. i wouldnt worry about it, not a scam. afterall a dealership needs a permit to sell cars so cannot scam anyone with title.
OTOH if i bought from private party, i would have the title in old owners name and go to dmv to move plates or get new ones so the new title comes in the mail the same about of time from DMV just like the dealership . So i wouldt worry about a scam .If you cannot get title from private party, i would walk away.