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To sell a car title is required in all states as it proves your ownership and establishes that the car has no liens or other financial obligations attached to it.
However, some states have exemptions if the car is 15 years or older and you can provide a signed bill of sale.
If you are not eligible for an exemption you should apply for Duplicate Title or transfer title to your name by proving your ownership of the vehicle at local DMV.
Jump to: List of States Where Selling Without the Title is Illegal
Jump to: Check If You Are Eligible for an Exeption
Jump to: Steps to Obtain Title if You Don’t Have One
Peddle
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Get paid in check during the pick up for any car (damaged, junk, wrecked)
Wheelzy
Quick car evaluation without the hassle – sell your car within 30 min
Choose a convenient date and time for free pick-up, as soon as next day
Get cash in hand the same day the Wheelzy agent picks up your car
CarBrain
Get an offer within 2 minutes and sell your damaged car within 24 hours
Free vehicle towing and no fees to getting rid of your damaged car
The tow truck driver will arrive with your check (nationwide service)
What is a Car Title, And Why it’s Important?
Certificate of Title or simply put, title, is a legal document issued by a state’s Department of Motor Vehicles (DMV) that establishes a person as the legal owner of a car.
The car’s title contains important information, such as the vehicle’s identification number (VIN), the year, make and model of the car, and the name and address of the registered owner.
This document is essential to prove the ownership and is used to:
Register the vehicle with the DMV
Sell the vehicle
Apply for a loan
Insure the vehicle
Proof of ownership in case of legal issues or accident
If you have a loan on a car your name will appear on the car title as the registered owner, but the lender will be listed as the lienholder and until the loan is paid off, the lienholder may hold onto the title.
Once the loan is fully repaid, the lender will release their lien, often by providing a lien release document, and you can then apply to the DMV to obtain a clear title that shows only your name.
States Where Selling Without the Title is Illegal
Based on federal laws in most states, it is illegal to sell a car without a title. Generally, selling a vehicle without transferring the title is considered illegal across the entire nation as it fails to properly signify a change of ownership.
This is because a title proves that you are the legal owner of the vehicle and that there are no outstanding liens or other encumbrances on it. If you are caught selling a car without a title, you could face fines, jail time, or both.
States where it is illegal to sell a car without a title:
Arizona
California
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
Check If You Are Eligible for an Exemption
However, there are a few exceptions to these laws. For example, in some states, you may be able to sell a car without a title if you have a bill of sale and the vehicle is less than a certain age.
Exceptions apply in these states:
StateExceptionIowaIf the car is 15 years old or older and you have a bill of saleMaineIf the car is 1995 or newer and you have a bill of saleMassachusettsIf the car is 15 years old or older and you have a bill of saleMontanaIf the car is 25 years old or older and you have a bill of saleNew HampshireIf the car is 15 years old or older and you have a bill of saleVermontIf the car is 15 years old or older and you have a bill of sale
Even if you meet the requirements to sell a car without a title in these states, there may be additional directives that you need to meet. For example, you may need to get a bill of sale notarized or you may need to pay a fee.
Penalties for Selling a Car Without a Title
In most states, it is illegal to sell a car without a title. The penalties for doing so vary from state to state, but they can be severe. In some states, you could be fined, have your car impounded, or even be charged with a crime.
Penalties for selling a car without a title depend on each state’s laws. However, some common penalties include fines, impoundment and even criminal charges.
Examples of penalties for selling a car without a title:
California – you could be fined up to $1,000 and/or have your car impounded
Florida – could result in a fine of up to $500 and/or up to 60 days in jail
Illinois – could result in a fine of up to $2,500 and/or up to 1 year in jail
New York – could result in a fine of up to $1,500
Texas – could result in a fine of up to $2,000 and/or up to 180 days (6 months) in jail
Steps to Obtain Title if You Don’t Have One
There are various methods to replace a misplaced title, particularly if you have it registered under your name or can present a bill of sale as evidence of ownership. However, if the title was never transferred to your name, you will need to take additional steps to obtain a duplicate title.
If You Lost the Title Document
If the vehicle’s ownership was assigned to you upon purchase but you have lost the title document, you can straightforwardly apply for a duplicate title in person at your local DMV or by filling out a form online.
Here’s how to apply for a duplicate title:
Provide your driver’s license or ID, the VIN number, and the license plate number of the vehicle.
Pay a fee for the duplicate title. The fee will vary from state to state, but it is typically around $20-$50.
Double-check if the information is correct and submit the application
You will get your Certificate of Title via mail within 2 to 4 weeks.
If You Never Got the Document
It is possible that you purchased a vehicle without the title or that the title was never transferred to your name due to incorrectly filed documents, the seller’s mistake, inheritance, or the vehicle being gifted to you.
If this is the case, your first course of action should be to reach out to the previous owner, clarify the issue, and request that they assist in completing the title transfer application.
If the previous owner has lost the title document, they will need to apply for a duplicate title first.
If Car Was Gifter Or Inherited
If you received a car as a gift or inherited it and you do not have a title in your name, you have a few options.
Option 1: Ask the rightful owner to transfer the title to your name. This is the most common and easiest option. You should follow a standard title transfer procedure at your local DMV.
Option 2: Apply for a replacement title. Provide proof of ownership, such as an inheritance document and depending on your state, you will receive the replacement title within a few weeks. A fee of $15 to $40 may apply.
Option 3: If the previous owner is not alive, you will need to provide a death certificate and will prove that you are the rightful owner of the vehicle. You will also need to apply for a title transfer by filling out the required forms at the DMV.
In all cases, you will be responsible for registering and insuring the car using the new title with your name. Receiving a new title usually takes up to a few weeks.
If You Can’t Get Title Obtain a Lost Title Bond
As a last resort, you can apply for a bonded title. It establishes who owns a vehicle and can be used instead of a traditional title to register, get insurance, or sell the car.
To get a bonded title, you must pay a surety bond, which is a type of insurance that protects the state and any potential previous owners if someone else claims ownership of the vehicle. The amount of the bond depends on the value of the vehicle.
Pros:
It allows you to register, get insurance, and sell a vehicle even if you don’t have a traditional title.
It is a relatively inexpensive way to obtain a title.
Cons:
The bond amount may be high, depending on the value of the vehicle.
The bonded title will not be transferred to the new owner when you sell the vehicle.
You may have difficulty getting a loan or financing for a vehicle with a bonded title.
Best Way to Sell a Car
The best way to sell a car depends on multiple factors: the value of your car, current market demand and how much time you are willing to spend.
Selling Car Privately
Even though the exact time depends on multiple factors, such as the car’s make, model, age, mileage, condition, price and even your location, it takes 52 days on average to make a sale.
Moreover, you will need to spend at least 15 hours of your time advertising, scheduling test drives, answering potential buyer’s questions and taking care of all the paperwork.
If your car’s market value and demand is high it is likely you will make a sale quicker and it would be wise to sell it privately.
Trading in or Selling to a Dealership
Selling your car to a local dealership can be a relatively speedy procedure, typically taking about 1-2 days. However, the downside is that this approach requires you to invest time in visiting various dealerships to secure the best offer. This can become challenging, particularly if the number of dealerships in your vicinity is limited.
If you are considering trading in, the advantage is saving on sales tax. In this case, sales tax is counted as the purchase price and trade-in difference.
For example, if you are buying a new car for $20,000 and your trade-in is worth $5,000, you will only pay sales tax on $15,000. This is a savings of 3%, or $450 if the sales tax rate in your state is 7%.
However, in some states, sales tax is calculated on the full purchase price of the new vehicle, regardless of the trade-in value.
States where sales tax is calculated from full price:
Hawaii
Iowa
Maryland
Mississippi
New Hampshire
North Carolina
Ohio
Pennsylvania
Selling Car Online
Peddle
Peddle Summary
Sell used, damaged or junk car nationwideGet instant quote on (855) 925 4302Free towing within 48 hours after offerReceive payment upon car collection
Selling a car to Peddle will take no more than 48 hours, and you will get an instant cash offer once filled an online form.
To get an instant cash offer from Peddle:
Enter your car’s make and model
Enter the car’s year of manufacturing
Enter your zip code
Answer some basic questions about the car’s condition
Peddle offer is valid for seven days, and once you accept it, you will be able to arrange a car pickup, which is free and will be done within 48 hours.
Peddle buys all types of cars, including flood or fire damaged, accident damaged cars, vehicles with mechanical issues, broken or missing parts, etc.
Recent Peddle offers:
ModelYearMileageOfferToyota (Camry)2011150,000$2,225Volvo (S40)200137000$430Mercedes-Benz (560)199192000$1,930BMW (528)2008126,000$1,140Kia (Forte)2010145,000$635Honda (CR-V)201167000$2,930Ford (Explorer Sport Trac)2004145,000$1,170Oldsmobile (Alero)2004162,000$400Audi (A6)2006106,000$530
Wheelzy
Wheelzy Summary
Wheelzy stores are open 7 days a weekGet offer in minutes – (855) 510-1108Free towing of your car from your locationInstant payment via cash or check
Wheelzy also buys any vehicle regardless of its make or model, including trucks, vans, and SUVs, as long as it’s 1981 or newer.
However, Wheelzy doesn’t buy RVs, ATVs, or campers.
Types of cars you can sell to Wheelzy:
Old and used cars
Junk cars
Accident damaged cars
Cars with missing or falling parts
Non-running cars
Cars with mechanical problems
Wheelzy will send you a cash offer within 30 minutes after you’ve filled out an online form. Typically, the offer lasts seven days, and after you accept, the Wheelzy agent will arrange a convenient pickup that works with your schedule.
Recent Wheelzy Offers:
ModelYearMileageConditionOfferHyundai (Tucson)2006200,000Doesn’t start$400Mercury (Sable Sedan)2003150,000Doesn’t start$225Mercedes-Benz (C)2001150,000Starts$222Ford (Edge)2010200,000Doesn’t start$1,200Ford (Flex)2009150,000Starts$1,000Lexus (RX)2002300,000Doesn’t start$750Chevrolet (Cobalt Sedan)2007200,000Doesn’t start$200Toyota (Corolla)2003250,000Drives$555BMW (528)2008250,000Drives$1,487
CarBrain
CarBrain Summary
Get an online offer within 2 minutesGet cash for your car in under 48 hoursCarBrain buys cars in over 7 conditionsUp to 7 days to accept CarBrain’s offer
CarBrain is another company that offers a quick and hassle-free way to sell cars online. To get a cash offer, you will need to fill out an online form and provide information about the car’s make, model, mileage and condition.
Once you accept the offer, CarBrain will arrange a pick-up free of charge.
Selling the car to CarBrain is free and it will purchase any vehicle regardless of its condition, make, model, or mileage.
Types of cars that CarBrain purchases:
Water or fire damaged
Non-running
Old vehicles with excessive mileage
Accident damaged
Junk cars
Cars with missing or falling parts
Cars with engine or transmission issues
Carvana
Carvana Summary
Get an online quote within 2 minutesFree pickup wtihin 100 miles of a hubOffer valid for 7 days or 250 more milesHaggle-free process to sell your car
Carvana buys new or used cars as long as it’s in running condition and has no major problems or body damage.
Carvana will send you an offer within a few minutes, and you will have seven days or an additional 250 miles to consider and accept the offer.
Carvana will pick up the car for free if you are located within 100 miles of one of their hubs. If you live further away additional fees might apply.
You can sell your car to Carvana if:
It has a working odometer
It is free of major mechanical problems
Has no excessive body or interior damage
Can be safely driven
Is 1992 or newer
CarGurus
CarGurus Summary
Receive payment within 3 working daysFind out the market value of your carList your car for sale in under 5 minutesUp to $75,000 in protection for your sale
CarGurus is one of the best online car-buying platforms where you have two options to sell a vehicle. GarGurus allows you to sell cars privately or 100% online.
To get an instant cash offer from CarGurus:
Enter your cars VIN or license plate number
Enter your zip code
Answer basic questions about the car’s condition
Once you provide the required data, CarGurus will present you with the best offers from their dealership network.
Once you accept the offer CarGurus agent will arrange the car’s tow, which is completely free and you will be paid by check or direct deposit within two business days.
CarGurus also allows you to create a listing of your car and wait for potential private buyers to contact you. CarGurus charges a $4.95 fee per vehicle listing, and how long it takes you to sell depends on your car’s model, price and overall market conditions.
Required Paperwork to Sell a Car
The specific paperwork required to sell a car varies by state, but the Certificate of Title is universally required. This document serves as legal proof of ownership and must be signed by the seller and buyer.
In addition to the title, some states may require other documents, such as a bill of sale, valid emissions test, and car registration documents. It is also a good idea to have a VIN check, service records, and owner’s manual, as these can help you prove the car’s value and get a better deal.
StatusDocument:Document:Document:Required in All StatesCertificate of TitleOdometer ReadingRelease Of LiabilityRequired in Some StatesBill of SaleRegistration TagEmissions TestOptional PaperworkVin CheckService RecordsOwner’s Manual
FAQ
What are the different types of car titles?
Clear title: Indicates that the vehicle has no outstanding financial burden of any kind that would prevent it from being sold. A clear title is the most desirable car title and, in many cases, the only one that makes you eligible for a car loan.
Salvage title: This is issued to a car that has been in a major accident or has been declared a total loss by an insurance company. A salvage title may be difficult to sell, and it may require additional repairs before it can be registered and driven.
Rebuilt title: This is issued to a car that has been repaired after being declared a total loss. A rebuilt title is not as desirable as a clear title, but it may be easier to sell than a salvage title.
Lienholder title: This type of title is issued when a car is financed. The lienholder is the financial institution that holds the loan on the car. The lienholder title will not be released until the loan is paid off in full.
Electronic title: This is a type of title that is stored electronically by the state DMV. Electronic titles are becoming more common, and they offer a number of advantages, such as faster processing times and reduced paperwork.
What is a bill of sale?
A bill of sale is a legal document that transfers ownership of a car from one person to another. It should include the names of the buyer and seller, the VIN of the car, the date of the sale, and the purchase price.
What are the benefits of selling a car with a title?
First of all, providing a car title upon the sale will allow you to avoid any legal issues. Moreover, potential buyers will be more likely to trust you and you will be able to get a higher price for the car.