A car title is a legal document that serves as proof of ownership. As such, if you want to sell your car, you generally need to have the title. Not only does it prove you're the car's rightful owner, but also shows that there are no outstanding liens against it.
Car Title Fast Facts
- Also known as a certificate of title.
- Includes information like the owner's name, the vehicle identification number (VIN), the year, make, and model of the vehicle, and possibly an odometer disclosure (the odometer reading at a specific point)
- Details if there's a lien against the car, and if so the lender financing it.
- Not all states issue vehicle titles, but most do; this includes states like California, Ohio, Maryland, and New York.
- If you're wondering what happens if the new owner fails to sign your car's title, read our separate guide on what to do if a buyer never registers a car you sold.
How to Sell a Car Without a Title
- Option 1: Get a Replacement
- Option 2: Trade Your Car In
- Option 3: Create a Bill of Sale
- Option 4: Get a New Title
- Option 5: Check If the Vehicle Is Exempt
Option 1: Get a Replacement
You can get a replacement if you've misplaced your car's title. You'll typically need to submit an Application for Duplicate Title with your state's Department of Motor Vehicles (DMV); you can usually find this form on your local DMV website. After submitting your application, your DMV office will let you know how to proceed.
It's important to note that a replacement title invalidates any previously issued titles, so if you ever dig up that old title—or if someone else finds it—it won't be of any use.
Option 2: Trade Your Car In
Some states have an Electronic Lien and Titling (ELT) Program that allows dealers to confirm who owns a vehicle. If you live in one of these states, you can trade in your vehicle for a new car at a dealership without providing a title. Dealers can use the ELT system to establish your ownership of the vehicle.
What about if you're trading in a car that's under a lien? In some states, when you take out a loan for a car, the lender or lienholder holds the title until the debt is paid in full. The lienholder only hands over the title once the loan has been paid, but if you're trading in the car to a dealer, the dealership can handle that payment.
After the dealership confirms the amount owed on the vehicle, you'll be asked to sign a Power of Attorney document stating that the dealership can act on your behalf. The Power of Attorney document allows the dealer to pay off the loan and obtain the title transfer without you being physically present.
Option 3: Create a Bill of Sale
If you're wondering how to sell a car without a title and have an older vehicle, there’s good news: It might not be necessary to have a title to complete the sale, depending on where you reside.
States like New York, Vermont, and Connecticut do not require titles for vehicles that reach a certain age. In those states, a bill of sale form typically does the job of a title.
You may need a notary, because notarizing the bill of sale is required in some states. Check to see what's necessary for the state where you live.
Ensure that the bill of sale lists the year, make, model, color, VIN, and selling price. Also, consult your local DMV for any additional forms you'll need to fill out to complete the transfer of ownership. After you've completed those, it is the buyer's responsibility to figure out vehicle registration.
Option 4: Get a New Title
There are some situations where you never had a title and need a new one. Here are some scenarios and ways to approach them:
You Bought or Were Gifted a Car From a Previous Owner Without the Title
What if you purchased or were given a car that didn't come with a title? In this case, you can get a "bonded" title. This document is just like a regular title, but it's marked to indicate that there is a surety bond attached to it. Again, you'll want to speak to your state's DMV for the exact process, but it typically involves buying a surety bond (or lost title bond) which protects the state and any previous title owners who may have a legitimate claim of ownership to the vehicle. The surety bond, combined with proof of ownership like a bill of sale, allows the DMV to issue you a bonded title.
If someone comes along later and says that they are the rightful owner of the vehicle, they can make a claim against your surety bond. If the claim is validated, the surety company compensates that person, and you are then obligated to pay the bond company.
You Want to Sell a Vehicle That Was Abandoned on Your Property
If you're attempting to sell an abandoned vehicle you'll first have to claim ownership. This process varies by state but generally involves waiting a set amount of time and demonstrating that you made a good-faith effort to find the owner.
At that point, some states let you file for the title and sell it just as you would any ordinary car, while others require that the car is sold at a public auction (or destroyed if it's a junk car). A few states, like Nebraska, require abandoned vehicles to be turned over to local law enforcement.
The Title Is Under a Lien
In some states, the lender holds the title until a car loan is paid in full. If that's the case, you'll need to cooperate with the lender. You first need to find the payoff amount and then pay to release the title. You can make this easy by meeting at the lender's local office. Once the buyer hands you cash, you immediately use it to pay off the loan. At that point, the lender can release the title to you, and then you can sign it over to the new buyer.
Option 5: Check If the Vehicle Is Exempt
Do you have a collectible car or one that's 15 to 25 years old? If so, it could be exempt from titling requirements. In a case like that, the state won't issue a title. A bill of sale is the only proof required for registration.
Conclusion
Figuring out how to sell a car without a title can be straightforward with the correct information. Once you've followed the guidelines listed above, you'll be ready to say goodbye to your used car.
