Question for car flippers

For those of you who flip collector cars or know people who do, do you bother to transfer a title in sates requiring titles for old cars?

I have a guy who wants to trade cars with me. He recently picked up a real nice old car valued at around 10K but didnt transfer the title into his name because he hoped for a quick flip and didnt want to pay the $150 or so the DMV charges. When I asked if he had a bill or sale or some paperwork showing he legitimately got the car from the person on the title he said no. I even offered to foot the DMV charge to transfer the title and he hemmed and hawed and then said that would take too long to get the title back......I said I'd wait to which he reluctantly said ok I will call you "in a couple of days".

I havent seen the title yet (we just talked on the phone) but he says VIN on title matches VIN on car but the title is in previous owners name.

I plan on passing on the deal unless a legit title is produced.

You see these quick flip shows like Gas Monkey and I know it's in Texas but does that state require titles for old cars?

 

If the seller did not fill out the "transfer to" spot on the title just fill in your name and send it to the DMV. If not make him come up with a clean title with a clean "transfer to" section.

I don't flip cars, but that's how I buy them.

 

In Michigan it is illegal to jump names on a title. Plus no bill of sale????

 

My main concern is that he got the car legitimately.....I just feel safer buying/trading for something that has the title in the sellers name.

I am assuming the title was signed by the guy he got it from.......or possibly even forged by this guy who knows?

 

you need a legal advisor, not advice from car nuts.

 

I talked to a claims adjuster at Hagerty about this. She said to have the DMV run the VIN to show it isn't stolen. Problem is I just can't walk into an ever so helpful Illinois DMV and say "here run this VIN".......don't work like that around here. It's a state police issue and am not even sure they would do that.

Hagerty went on to say that if the car I traded for did end up to be stolen then they couldn't guarantee my car I gave to him would be covered for theft. It's a real gray area she said seeing a stolen car was used in a trade.

 

Yeah the no proof of who he got the car from was a big red flag to me.
He should of at least have that.

 

i have jumped a few titles because you can only sell 5 vehicles a year in michigan before you have to get a dealer permit. Plus you don't have to show the income. just make sure the vin is good. if it seems shady don't do do it may not be a good deal. I also keep bills of sale to show the person that the vehicle was obtain legally.

 

I most always get the title in my name before selling. But not every time...
As long as the "seller" spot on the title is signed and the "buyer" is you then it should be OK.
The only time I've had issues were when the buyer and seller spots were allready filled by other names than mine.

 

Easy to jump titles, but I always get a bill of sale and some type of reciept for money paid, just to cover my ass. I just don't relish the thought of legal troubles from handling stolen goods etc.

 

In Washington the title has a perforated section for the seller to fill out, as to who he sold it to, how much, and the date. The seller then sends in that portion to the DMV, which reports the sale, even if the buyer doesn't..releases any liability for the seller.

 

California requires it. I have a buddy who is a DMV investigator. He peruses classifies then goes to see a seller. He contacts a seller, then asks for the paperwork. If the title isn't in the sellers name, he cites them. To sell more than 3 cars a year, you need a dealers license. I would not buy a car that isn't in the sellers name.

 

If the title has his name entered as buyer he will be required to register it in his name. If it is blank where the buyers info should be filled out, in North Carolina it is a FELONY to have an open title. It is not worth the legal issues. If the title is open and you decide to take a chance how do you prove to the DMV you are the legal owner without a legitimate bill of sale which must be presented to the DMV in most states when registering it.

The DMV frowns on losing money they think they should have collected. At one time jumping titles was no big deal. Today it can be very troubling.

 

chuckle, chuckle

 

The reasons Hoodprop said.. I'm gonna say well better than 99% of the time. Go with the seller and have a Notary Public stamp a bill of sale. That way he has to produce his ID and he's known to have sold it to you in the extremely slim chance that something goes wrong if it freaks you out, but it's probably no big deal.

 

It is illegal to jump titles in every state.

Some states allow sellers to sell up to a certain number of cars without a dealer's license, but that is not permission to jump titles. Not reporting income from flipping cars is also illegal.

Get caught once, and then come back and tell me how clever you are.

 

I was asked to state my opinion rather than express my humor.

It is illegal to jump titles. Period.
You will find all the laws listed if you do a quik search of your DMV website.
Your laws are much more important than the opinions of a bunch of car nuts.
This truly is a legal issue. The members here are very likely not qualified to comment.

If you need specific advise for WI laws, perhaps I can help. But again, going right to the DMV website is the most accurate and expeditious means of gaining knowledge

 

happens everyday---sold dozens that way and it would never stop me from buying a car if i felt right about everything else---but you are taking a chance...

 

The guy on gas monkey has a dealer's license. You are supposed to transfer a title to your name in 20 days here in Texas. We also have to have the seller sign the application to transfer title. Makes it hard sometimes, but it works.

 

The fees for transfer in Kellifornia are so high that it discourages one from titleing a new purchase if you aren't going to keep if for long. Just be sure there isn't any back fees or liens on it bu calling the DMV and giving them the license plate number or serial number.

 

There should be no sales tax for selling a used car in a private trasnaction just like a Washing machine or a riding lawnmower but several states do. In some states a $10,000 car will cost you around $1,000 to transfer and register. States want to steal as much of your money as possible. The DMV here just tried to charge me $185 to transfer and register a $150 Moped. States that try and rape it's citizens will encourage people to avoid the rape. If you ask the DMV for help they will usually tell you the most convoluted, difficult and costly way to do everything. My opinion.

The car seller is probably trying to avoid the over priced fees. You asked him for a bill of sale but if he has to show you that he will also be showing you how much you paid for it. Chances are he is flipping it and paid less than what he is selling it for and doesn't care to disclose that fact. If these types of transactions bother you, buy something else. But in my experience there are "jumped titles" on collectors cars all of the time.

 

We were going to do a straight trade no cash involved.

 

I've bought and sold about 45 cars in the last 3 years and put about 4 in my name, and that's only because I was thinking of keeping those 4. Just leave the title open and unsigned and your good

 

Called the seller to discuss the trade and the title issue again and he car was sold.

Maybe I was being over cautious but this just stunk from the beginning and with the headaches the state of Illinois can cause with pre and sometimes even post 1948 vehicles (even with in state titles) it just wasn't worth it to me.

Oh well.

 

No you weren't being overly cautious.

How smart do you think people that brag on a public forum about jumping titles really are?