What You Need To Know About Bonded Titles And When They Are Issued
Older cars and trucks bought and sold several times may have a title that has changed hands multiple times. In the event that there is a mistake with the title, or it is lost and needs to be replaced, you may find you need a bonded title before selling or registering the vehicle in your state.
The title for your vehicle is issued based on the vehicle identification number when the car or truck is new, and once assigned, the title will follow that car through its lifetime, changing hands with every sale or change of ownership. While reassignment is not difficult, if it is incorrect, you can't just change the information on the document, and reissuing the title can be challenging.
In some states, the process requires you to get a bonded title that essentially assigns an issuance policy or surety bond to guarantee vehicle ownership. The bond is in place so the owner and buyer are protected if a claim of ownership is filed against the vehicle.
Getting a bonded title does require you to find a title bonding service and apply for the bond. There are some fees involved, but on average, the cost is less than a couple hundred dollars for the bond, and in most states, it only needs to remain in place for a couple of years.
Once the bond is issued and the paperwork is filed, the department of motor vehicles, or DMV, will issue a new title for the car. However, the title will indicate it is bonded to alert anyone potentially purchasing the vehicle that this is the case.
If the title is missing or the vehicle owner can't produce a copy of one, the only way to sell the vehicle in most states is to apply for a new title. If you are the original owner and the car never changed hands, you may be able to request a replacement title. However, if that is not the case, you may be required to apply for the bonded title.
The process is the same as applying for a new title in the event of a misassignment. The bond amount may be different based on the year of the vehicle and the ability to track the ownership over the years. Even without the title, the VIN number on the car will typically reveal a lot of information the bond company can use to verify your ownership of the car or truck and help decide if they are comfortable issuing the bond for the vehicle on your behalf.
For more information about bonded titles, reach out to a local service.