The Expert Podcast

In our business, we deal with various DMVs all around the country on a regular basis, and a lot of times, they have some very good information for consumers about how titles work. When you're buying a vehicle, understanding what type of information is important can help you avoid a lot of title problems. By simply reading what the DMV says regarding title transfers, properly signed titles, import vehicles, and even a bill of sale, you can understand all the requirements listed on the DMV website. We’re going to go through some of the common problems you may run into as a consumer when it comes to titling your vehicle and what the DMV says about these issues.

There are some title problems that are impossible to solve, and in these cases, you may never get a title for your vehicle. So, you have to be very, very careful. For example, let’s take a look at what Delaware says about vehicle titling, including your requirements, your rights, and what you’re allowed or not allowed to do with a vehicle. This information comes from their titling division.

The first thing is to make sure that, if you’re getting a title, you check the front of the title and ensure it matches the vehicle you’re purchasing. It’s surprising how often our sales department hears from customers who realize that their title doesn’t match their vehicle — it has a different VIN number. That’s a big problem because, essentially, you have a vehicle for which you don’t have a title. That title belongs to someone else’s car, and you’re starting from scratch as if you don’t even have a title. You can’t change VIN numbers on the title — it doesn’t work that way.

Also, make sure you’re not buying a flood, salvage, rebuilt, or reconstructed vehicle. Many people assume they’ll just get it inspected, but the reality is that the DMV does not pass many salvage title inspections because they don’t want these vehicles on the road. They may reject the inspection due to missing receipts or because the vehicle isn’t up to factory specs. That can be a serious issue.

If you’re dealing with a homemade vehicle, where you build it from scratch, you’ll need a new VIN number before you attempt to get a title. Getting a title without a VIN number is not possible. Additionally, be mindful of any lien holder listed on the title. Even if it’s not shown on the physical title, if there’s a lien in the title records, that lien must be cleared before you can get a title. This is a critical step.

Another major issue to watch out for is something called "jumping title" or "skipping title." This occurs if the seller’s signature is already on the title, but you’re buying the vehicle from someone else, not the original owner. You might be dealing with an unlicensed dealer, known as a “curbstoner,” who flips cars without having a dealer’s license. In this case, the original owner has already sold the vehicle and informed the DMV. If something goes wrong, you won’t be able to find that original owner. This is a common issue for people who buy a vehicle that’s changed hands multiple times without updating the title records.

In Delaware and most other states, jumping titles is illegal. Before selling a vehicle, you must get a new title in your name. Additionally, be cautious with vehicles titled in another country. Some vehicles can be imported to the U.S. if they’re over 25 years old under a DOT or EPA exemption, but this doesn’t guarantee that the state will give you a title. The exemption only applies to federal standards, not state title or registration requirements, which may involve additional compliance costs.

Many states also have a time limit for changing the title, usually 30 days after the purchase. The DMV provides these pieces of advice because these issues are common questions they receive from consumers. It’s why this information is available on their website. We often hear similar questions: “I imported a vehicle but don’t have a bill of sale,” or “the VIN number doesn’t match.” Lien holders, VIN mismatches, and title issues like these come up repeatedly.

If you’re buying a vehicle, make sure to avoid these pitfalls. If you’re already in a situation with one of these title problems, you can check out our website to find possible solutions tailored to your scenario.