Uncovering the Mystery: Do Dealers Really Sell Cars Without Titles?
Download MP3Introduction to the topic: What to do if a car dealer doesn't provide a title after you purchase a vehicle.
Common scenarios:
- Buying a vehicle from a dealership (online or physical).
- Financing through a credit union or bank instead of the dealership.
- Potential issues with the dealership not having the title.
Reasons a dealer might not have a title:
- Acquiring the vehicle from an auction without obtaining the title.
- Selling the vehicle prematurely for profit without securing the title first.
Impact on financing:
- The bank or credit union pays the dealer upfront for the vehicle.
- If the dealer doesn't provide the title, the bank or credit union may consider your loan as unsecured.
- Possible conversion of your auto loan into a personal loan if the title isn't obtained within a specified timeframe (e.g., 60-90 days).
- Consequences of this conversion, such as increased interest rates (e.g., from 7% to 12%).
Importance of verifying the title:
- Buyers should ensure the dealer shows them the original title, not a photocopy or digital copy.
- Understanding the risks of purchasing without verifying the title.
Real-life examples:
- Cases where buyers are left without titles for months, affecting their ability to drive or register their vehicles.
- The financial burden of making payments without the ability to use the vehicle.
Conclusion: Always verify that the dealer has the title in their possession before completing the purchase or signing any agreements.
