New Rules, New Titles: What 2023 Vehicle Title Laws Mean for Vermont, Bonds, and Liens
Download MP3In This Episode:
- Why it's important to stay updated on vehicle title law changes each year
- Recent updates and loophole closures in states like Minnesota
- Key 2023 title requirements using Michigan as an example:
- Must present original title (no photocopies or altered documents)
- Signatures required from both buyer and seller
- Odometer reading and lien release if applicable
Common Vehicle Title Problems:
- Lost title or no title received from seller
- Only having a bill of sale
- Title was damaged or destroyed
The Vermont Loophole Explained:
- Vermont issues a registration, not a title — usable in non-resident scenarios
- Used as proof of ownership to apply for a title in other states
- Featured in publications like Road & Track, Jalopnik, Hagerty
- Downsides:
- You must pay Vermont sales tax (based on book value, not bill of sale)
- Long processing time and added fees
- Not always accepted smoothly by states like Florida
Florida DMV’s Fraud Alert:
- Crackdown on Vermont-based title workarounds
- Additional documentation and scrutiny required
- Other states may follow similar enforcement patterns
Alternative: Bonded Title Process:
- Ideal for those without the original title
- Involves purchasing a surety bond (usually ~$100, not 1.5x the vehicle value)
- Title will be marked as "bonded" for 2–3 years but is still valid
- Not available in all states (e.g., Florida with restrictions)
Best Option: Court-Ordered Title:
- Ideal if the seller failed to provide a title or it was lost/destroyed
- Bypasses the DMV entirely
- Submit a petition to the court in your county
- More straightforward than most people expect
- Helps avoid dealing with DMV bureaucracy and loophole issues
- Available in most U.S. counties (over 3,600 jurisdictions)
- Free resources and instructions available on the host’s website
Final Thoughts:
- Don’t waste time on loopholes that are being shut down
- Court order is the most reliable and direct way to get a valid title
- Use consumer resources to guide your process — or get professional help if needed
