The Expert Podcast

so why don't more people do a bonded title for a vehicle. bonded title is a process offered by the department of motor vehicles or license licensing division in almost every state. there's about eight or nine states they do not allow bonded title. there's a few states that do but they don't call it bonded title they call an affidavit title or invalids affidavit title something like that but it's the same process. so why don't more people do it. the most common method that we see people try to gravitate to is the Vermont loophole or try to do an abandoned vehicle or mechanic's lien vehicle. very few people instinctively look at a bonded title and this is probably a big mistake. a bonded title is an extremely beneficial method of getting a vehicle title when you don't have the proper paperwork. one advantage over the Vermont loophole is you don't have tax the Vermont loophole process requires that you pay sales tax to the state of Vermont based on the full book value of the vehicle. they don't go by your bill of sale they don't go by what you say it's worth they go by the book value period. that could be a lot of money hundreds of dollars for tax. for a bonded title you don't pay tax to Vermont. now if your state has tax you have to pay that anyways that won't change you do have to buy a surety bond but that's a very small cost for most vehicles that are worth you know seven or eight thousand dollars or less the bond cost you about a hundred Bucks not a big expense. there's a few extra forms you have to fill out other than the normal title application but if you go through the Vermont loophole you have to fill out the Vermont paperwork the vin verification send it to Vermont wait for to come back and then go to your state. with a bonded title you go direct to your state you can leapfrog right over vermont. why is that important well no we talk to seven or eight hundred people a day almost everybody asks the same question on every call how long till I get my title how long is it gonna take to get a title how long do I have to wait for a title. so time is an important factor. put a message below let us know what you think about this I'm sure that if you're looking to get a title for a vehicle one question is on your mind is how long it's gonna take when can I have a title in my hand. because you wanted to get a title is because of a certain event something happened that made you want to get this title is not just a random one day you woke up and said oh maybe I'll get a title today. something happened your car was impounded you want to sell it you need to get insurance. there's something that happened that made you today think about the option of getting a title. so there's a time value well getting a bonded title helps you. if you do the Vermont process you to wait fill it out said that the Vermont wait for them then get that back and they bring it to your state so that's time bonded title one step right to your state. the other thing is you don't have to worry about the year of your vehicle. when you do the Vermont loophole it only is gonna work if your vehicle is fifteen years old or older. if you got a newer vehicle you're out of luck can't do it. the other thing that people come up with a lot as well I'll file for an abandoned vehicle or mechanic's lien. most of the time they'll those don't apply most states an abandoned vehicles not finders keepers you don't get to keep a car just because you found it somewhere or it was sitting somewhere. does matter how long could be said there for two years that doesn't make it fair game for anybody to claim. it's not like the wild west where you can do homestead claim out of vehicle sitting around. there is a mechanic's lien process that a licensed garage can use to get money back from the valid repair bill and sometimes people try to use that improperly to get a title. like my buddies got a garage he'll file a mechanic's lien. well I can tell you this they audit these and unless it's a legitimate mechanic's lien where somebody brought a car and signed a repair order it's probably not going to work and even if it does it'll probably get audited and get revoked later. do some searches on our video channel or even on the news about people who have been arrested and prosecuted for false mechanic's liens. all you gotta do is perform a Google search for mechanic's lien fraud fake vehicle mechanics lien make sure you put vehicle because there's also mechanic's liens on real estate and it'll clog up the search results put fake mechanic's lien fraud and see what happens. there's people that get arrested for this all the time titles get revoked all the time. unless you are of legitimate garage who actually did work to the vehicle and the signed a repair order mechanic's lien is probably not gonna work. we do hundreds of mechanically every month for actual garages even the ones that have all the paperwork where they signed the repair order filled it out did the notices that the auction everything send it into the DMV half of the kick back even if everything is right you have to go back and try it again. so avoid that if you can. bonded titles a lot easier. now what's the downside to buy the title your title is going to say bonded on the title that's a fact. so if you look at the flip this car and sell it within a few weeks might be a downside because the buyer that looks at him and say what is this bonded what does this mean I don't know what this means and they might be a little skeptical. it doesn't mean anything wrong they can still buy if they want but sometimes you might have to educate them on what that means. and not only that but the bonded designation will go off that title in a period of time usually three years most states after three years you can remove that bonded designation from the title record. so it's not really a permanent downside if you gonna keep the car forever or at least keep it for two three years doesn't matter. many people don't choose bonded title because they feel like the loophole for Vermont or mechanic's lien it's like they're getting over somehow they're there somehow using something that's a little bit sketchy and sometimes sometimes that appeals to people. but you're not doing yourself any favors you're actually making your job harder than if you just file for bonded title. sometimes people don't do it because filing a bonded title is following the rules and sometimes people don't want to follow the rules they want to do something that kind of breaks the rules. just out of spite against the rules but that's gonna cost you money it's going to cost you time it might be other consequences that come up. even with the Vermont process look you know Vermont documentation is supposed to be accepted by all fifty states it's a valid legal government document issued by the state of Vermont it's official nothing wrong with it. but that doesn't mean when you bring into your state they're not gonna try to give you a hard time because maybe they don't know about it they haven't seen it maybe they know it's a loophole they just wanna kinda you know give you the run around for as long as they can until you force them to accept it if they're supposed to. so you trying to do something that's breaking the rules it's just kind of making your life harder DMV's hard enough to deal with anyway so why make it harder by trying to like be more confrontational. do it by their process the bonded title is a process they give you at your state they allow you to do this it's their own invention so use it. it'll make your life a lot easier and it's a simpler process to go through it's more direct. now when is it not going to work well if you live in one of the eight states that don't do bonded titles then you're going to be out of luck you can do a bonded title. you may have to look at a court order title or maybe then use another one of the loopholes. also if your vehicle has a lien against it you can't do a bonded title and you may need to look at other options check out our website about that we have some solutions for liens as well. bonded title is not to be overlooked it's an extremely undervalued and under utilized process in almost every state has at every state wants to do this for you. you may have to jump through a few hoops it's probably less hoops then you have to do anything else for but use it to your advantage. so that you don't miss out on the easy way to get a title that most people aren't even doing. in some cases it'll process faster through the DMV because the bonded title department that handles it hardly sees any of them. so there might be people sitting around at the DMV waiting to do a bonded title because no one's so using that method. where people trying to do other types titles or even a title transfer get bogged down because that department is busy the bonded the title department might not be busy. so if you felt like you have to wait for title or wait for DMV the bonded department might be just sitting around collecting dust twiddling their thumbs because nobody is utilizing them. check it out tell us what you think in the comments and use our website as a resource we have all the forms you need in other videos with instructions