Buying a Car Without a Title
A car title, or pink slip, is a document that proves who owns a car. If you buy a used car without a title, you might end up with a stolen car.
And that’s just one of many possible problems if you buy a car with no title. So unless there’s a legitimate reason the vehicle has no pink slip (and there aren’t many), don’t make the purchase — it may even be illegal.
- It may be illegal to buy a car without a title in your state.
- A vehicle without a title could be stolen or unsafe to drive.
- Instead of buying an untitled car, ask the seller to obtain a replacement title.
Can you buy a car without a title?
In some states, you can buy a car without a title, so long as you have another proof of purchase.
But even if it’s legal to make the purchase without a title in your area, beware: the untitled vehicle could be a stolen car, it could have been salvaged, or it could have a lien against it (meaning the last owner hasn’t paid off their car loan).
Titles verify information that is crucial to have when researching a car, including the vehicle identification number (VIN), ownership history and lien information. So the only time it’s safe to consider buying a car without a title is for the following car types:
- Brand-new: The vehicle is new, and the dealer has a Manufacturer’s Certificate of Origin or Statement of Origin.
- Old model: The car is old enough to be exempt from the title requirement. The minimum vehicle age varies by state, but it’s usually 25 years. For some older vehicles, the owner may have a Certificate of Sale or Transfer instead of a title.
- Hand-built: If the owner built the car by hand, they may not have taken the steps to obtain a title for the car.
- Auction sale: The car is up for sale at a sheriff or marshall auction.
If the title was stolen, lost or damaged, or even if the owner built the car, you can ask them to apply for a title or to request a duplicate title before you make the purchase.
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How to buy a car without a title
Before buying a vehicle without a title, check to see if it’s legal to do so in your state. Based on your state’s Department of Motor Vehicles (DMV) requirements, you may have to work with the seller to get alternative documents, or you might decide to search for a different car.
Ask the seller to get a replacement title
If the seller is the legal owner of the car, they should be able to get a replacement title from the DMV. Even if the owner of the car recently passed away, the seller can request a transfer of title before making the sale.
Depending on the state and the circumstances, the seller may need to fill out a page or two of paperwork and wait about five business days to receive a copy of their title.
But don’t let the seller tell you it’s too expensive to get a replacement title. Here’s what it costs to get a replacement title in these U.S. states:
- California: $27
- New York: $20
- Nevada: $20
- Alabama: $15
- Florida: $6
- Texas: $2 (by mail)
Examine the car
Before buying any used car, take it for a test drive and get it thoroughly inspected by a mechanic.
Car buyers who are buying from private sellers usually start with the test drive, since the inspection can cost them around $100 or more. But a test drive is risky when the car doesn’t have a title, since there’s a chance it has serious hidden damage.
For that reason, consider meeting the seller at the mechanic’s shop first. Before paying for the mechanic’s inspection, give the car a thorough visual inspection. If you feel comfortable driving the car, consider a quick drive in the parking lot, and then a full test drive after the inspection.
Check the car history
For an untitled car, it’s especially important to check records. You can start by asking the owner to see the car’s maintenance records and looking at what kind of work has been done.
To find out what’s hidden in the car’s past, the Federal Trade Commission also recommends getting a vehicle history report. These reports can give you valuable information on ownership history and past accidents and repairs. They can also verify whether the title is valid.
On top of that, you can use the VIN to look up information on insurance theft claims and salvages. You get five free VIN checks every 24 hours through the National Insurance Crime Bureau. And if you can’t find the VIN number, don’t buy the car.
Create a bill of sale
Can you register a car with a bill of sale and no title? Generally you can’t, although in some states you can buy a car from someone not listed on the title, so long as you also get a bill of sale signed by both the seller and title holder.
The bill of sale is a sales contract combined with a receipt. It proves the purchase was made and also helps protect the buyer, since it includes a description of the car’s condition and can serve as proof if problems are not disclosed by the seller.
Trust your instincts
If something seems off about the sale, there’s nothing wrong with backing out. The seller might pressure you to act fast or try to win you over with a sob story about how the title was lost, but neither of those are good reasons to hand your money over.
Instead of making an emotional decision, step back and evaluate the whole picture: Has the seller been forthcoming about the condition of the car and the lack of title? Have they given you a chance to fully inspect the car? Do you have clear proof that the car is safe, not stolen, and has no liens?
If the answer to any of these questions is no, you can always look for another car.
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How to get a car title
If you purchase a car without a title, you usually need to get one before you can complete the transfer of ownership to your name.
Depending on the requirements in your state, you may need to pay various fees and submit one or more of these documents to the DMV:
- Manufacturer’s Certificate of Origin
- Bill of sale
- Bonded Title Application or Motor Vehicle Ownership Surety Bond
- Tax Collector Hearing Statement of Fact
- Copy of your driver’s license or passport
Risks of buying a car without a title
If there’s no legitimate reason for the title to be missing, it’s not worth buying the car. Why not? Because any number of the following issues could come back to bite you after you pay for the vehicle and drive away:
- The vehicle is stolen.
- You need a title to register the car in your state.
- There’s a lien on the vehicle, and it may be facing repossession.
- It’s a salvage, meaning the insurance company declared it a total loss.
- It’s been in major accidents or has flood damage.
Frequently asked questions
If you buy a car without a title, you may not be able to transfer ownership into your name, or you might have to provide the DMV with alternative documents to verify the purchase. There’s also a possibility that you unknowingly bought a stolen or damaged vehicle.
In some cases, it may be legal to buy a car without a title. Depending on the requirements in your state, your DMV might allow you to prove the purchase and your ownership by presenting alternative documents. Check with your DMV to see what is required.
You might be able to sell a car without a title if you have other proof of ownership that’s required in your state. In some states, you can also sell an untitled car if the vehicle is old enough (usually more than 25 years old).
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