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Bonded Titles?


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I'm a glutton for rust and archaic technology; I need professional help, but let me finish the greater part of one more project.  No, seriously, I keep finding all these Craigslust minitrucks and Land Cruisers that are advertised as "clean titles," but they are rarely so. 

 

So, I understand that I might need a couple of professionals to give estimates of the value of the vehicle for the purposes of the bond associated with the title, plus a VIN inspector hired to come to my residence to check the digits for accuracy, a bunch of paperwork and a massive collection of fees?  What is the routine?  I'm currently looking at a non-running vehicle.  I know everywhere is different, but I'm in New Mexico.  How long would it be until I could sell the project, or can you immediately legally sell a vehicle with a bonded title?

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I literally just had a client go through the process getting a Bonded Title in New Mexico. So here's what I know:

You'll need a signed and dated bill of sale detailing the seller and buyer information, vehicle VIN and other specific info.

 

You will then need to fill out some paperwork at the NM DMV that basically "triggers" a bonded title scenario. 

 

You'll then need to locate a Bond Agent willing to issue an insurance bond on the title. This can cost anywhere from $250-750 depending on vehicle value.

 

With the bond issued, the state will have you take the vehicle to an inspection site, and a State Official will inspect the vehicle, and they will need to see TWO VIN LOCATIONS! This is where this guy I know had issues, but luckily on most Datsuns, you have the VIN tag and the Body Tag, and both show matching VINs...

 

After verification, the state will then issue a Bonded Title in your name. 

 

This title can be transfered (aka: sold) immediately, as long the new owner is fine with a bonded title. If the vehicle is ever claimed as stolen, the Bond Company will pay the original owner the agreed value and the current owner gets to keep the vehicle still (but this can be fought either way in court). 

 

Now, whats cool is that in 3yrs, that bonded-title is deemed to be "lapsed" by the state and they will issue you a new "Clean Title" in your name with no bond attached at all. 

 

 

Let me know if you have any questions, as the process is similar here in TX as well. 

 

~Peter

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You won’t always run into the bonded title situation with no paperwork on a vehicle. I recently picked up the blue 510 from the keeper, no title, reg, plates, etc., just a bill of sale from James. I took it to a registration company that ran the vin verification on site, the car was out of dmv’s database so it was just the dmv transfer and reg fee added to the reg company’s fee. All told it was $243 out the door and I left with plates and registration, the title will be in the mail in a couple weeks.

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Just a tip. Recently I needed a notarized bill of sale. The owner lived a long ways away and I wasn't going to drive so a notary could watch us sign the bill of sale. You can buy notary stamps on ebay. Research your states notary stamp to see what info is on them, pick a name and problem solved $20. Of course I never said this.

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I went through this with a dirtbike. I just needed a bill of sale and had to have an inspection at the DMV office. I did sell the bike still having a bonded title, and it would have expired now, enabling me to get a clean title if I wanted it. I imagine that it would be harder and the inspection more thorough on a car/truck though.

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I went through this with a dirtbike. I just needed a bill of sale and had to have an inspection at the DMV office. I did sell the bike still having a bonded title, and it would have expired now, enabling me to get a clean title if I wanted it. I imagine that it would be harder and the inspection more thorough on a car/truck though.

From what I understand, dmv won’t do a vin verification if the vehicle isn’t complete, I guess even missing markers can keep them from doing it. The registration service I used has done vin verification on a 510 bare shell, and dude walked out with plates.

 

Edit: these companies can get fees highly reduced or even waived, between them and AAA I’ll probably not ever step into dmv again.

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What companies have you guys used in the past? Have one right now that I bought from a guy who sent in all the paperwork. It was a NC title and he lives in SC. He was planning to make it a shop truck but ended up not having time to work on it. Three weeks after purchase I agree to buy it. Was initially going to wait on the title but some things came up and it was either get it or miss out on it and the other I was getting from him. So now, I have my 83 with nothing more than a bill of sale from him to me. This is the same truck I just swapped the KA trans into so I could start getting it "operable" for a DMV inspection.

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Here is a possible snag.  The instructions for a Bill of Sale specify that a vehicle must be titled before it can be sold again.  So, I wonder how that might play out in the scheme of things. 

 

So, is a bonded title just for the purposes of a lost title?  Because, in theory, in the collective group of MVDs, records of titles are not actually lost.  What about a vehicle that has been sold without the owner ever titling it, or passed around from more than one person?  Does an MVD look up the name on the Bill of Sale and reference it to the last person who the vehicle was titled to?

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As it turns out, I didn't need a bonded title for the Land Cruiser that I just acquired.  The title, which passed hands three times without official transfer, was good after all.  I convinced the seller to get the title in his name after he bought it from the heir of a deceased rancher, who bought it but never titled it because it was driven exclusively on a ranch.  And as of yesterday, I have the title issued in my name. 

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Good for you. These situations are often less sticky than they first appear.

 

Most times all you need is a good story and a happy disposition to get the paperwork through.

 

On the flip side, the more paperwork you have, the more confusing it gets, lowering your chances of a clean transfer without jumping through many hoops.

 

I usually start the process with a call to my registration service and a visit to the online (CA) DMV fee calculator. Then if nothing scary is found in the discovery process, I walk into DMV with as little paperwork as possible and keep my mouth shut.

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Good for you. These situations are often less sticky than they first appear.

 

Most times all you need is a good story and a happy disposition to get the paperwork through.

 

On the flip side, the more paperwork you have, the more confusing it gets, lowering your chances of a clean transfer without jumping through many hoops.

 

I usually start the process with a call to my registration service and a visit to the online (CA) DMV fee calculator. Then if nothing scary is found in the discovery process, I walk into DMV with as little paperwork as possible and keep my mouth shut.

Yea I gotta go in and get my 89 camaro in my name dmv calc says $800 in tags (last tagged in 05" lol) Just gotta walk in there and Ill play the teenager card.. I have gotten away with alotta shit this way and have gotten good deals too :D and USUALLY they will work with you.

 

Grats on getting that sorted out. Paperwork is just the bane of vehicles. I was gonna restore a 99 ram but it was 1800 back on fees so Im just parting it out. It only has 91K miles!

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