Bonded titles?

[2cam]

Hey there. Anyone have experience with bonded titles?

I recently picked up a 912 project car and unfortunately the long-term owner isn't able to find the title for it. He was former military and had the car in at least 5 States over the course of its ownership (New Mexico, Virginia, New York, Nebraska, back to Virginia and then to Louisiana). It was last registered in Virginia in the early 90s. However, VA doesn't have a record of the title. Nor does Nebraska or New York.

So, now that we're unable to track down an original title to the car, I'm considering getting a "bonded title". What are your thoughts on a bonded title? Do they have any negative implications on resale value if I were to decide to resell the car at some point? Any other negative consequences that you can think of?

Thanks!

2cam

[Toast54]

Damn. looked at the title with smudged glasses and thought it said something else. Had me all a-twitter.

[2cam]

Originally Posted by Toast54

Damn. looked at the title with smudged glasses and thought it said something else. Had me all a-twitter.

Haha! Definitely more interesting than T-I-T-L-E-S. I would have clicked too.

Texbike

[1979-930]

Rawknees can help your with Bondage anything.


I think it will hurt the value. It would be questioned as possibly stolen or who knows.
But, not trying to be rude, It's a 912 so I don't think it will hurt resale all that much.

[Matt Monson]

Isn’t the whole point of the bond to indemnify you, and future owners, if it ever turns up as once stolen? I’ve done it on cars here in CO when they weren’t worth much. Drag a $500 no title 914 or 944 out, bond it, get it running, and sell for $2500. Never done it on anything of value.

[sigchuck]

If you’re titling in Texas, I think the bond only needs to be for 3 years. I’m not certain, but I considered a car with no title a few years ago, researched the issue, and think that was the conclusion. Basically after 3 years, I think the bonded brand goes away.

[2cam]

Originally Posted by Matt Monson

Isn’t the whole point of the bond to indemnify you, and future owners, if it ever turns up as once stolen?

Exactly.

Originally Posted by sigchuck

If you’re titling in Texas, I think the bond only needs to be for 3 years. I’m not certain, but I considered a car with no title a few years ago, researched the issue, and think that was the conclusion. Basically after 3 years, I think the bonded brand goes away.

That's correct as well.

I just wanted to see if there were any downsides/negative consequences that I may be missing by going this route. It does seem like the easy(r) button at this point to get a title for it. I've been hesitant to do too much work on it before straightening that issue out.

Thanks!

2cam

[Matt Monson]

With a bill of sale from the owner I don’t really see a downside.

[maninblack]

I've done several in Texas over the years. Easy, cheap, and hasn't hurt the value a bit. Nobody cares.

[Mocker]

My experience: I bought a '73 911T from a guy in Utah with a bill of sale and an expired Arizona title. He said, "It's fine!" Virginia DMV said, "No it's not--we won't title this car."

While rules vary from state to state, on the advice of a friend with experience in these matters, I filed an abandoned vehicle claim with the Va DMV. That puts the VIN "out there" for a six- to eight-week period and allows anyone with a claim or lien to file paperwork disputing ownership. After that period passed, Virginia issued a clean title to me.

Now, previous to that, I had done a title search to make sure there wasn't a more recent title than the one I had been sent, so I felt pretty confident that the abandoned vehicle thing would come up clean.

Good luck; dealing with this type of thing is nerve-racking.

[gestalt1]

I had a similar situation. I ended up getting the car registered in Vermont. You will need to pay sales tax on the blue book value for a good condition estimated price. That part sucks but it is way better than Illinois that requires a huge bond to be held for 3 years until they issue a title. Once you have the Vermont registration you can transfer it to your state and get an actual title. Or just leave it as registered and use the Vermont plates.

[2cam]

Originally Posted by Matt Monson

With a bill of sale from the owner I don’t really see a downside.

Yeah, I have the bill of sale and the seller is being extremely cooperative on finding a resolution.

Originally Posted by maninblack

I've done several in Texas over the years. Easy, cheap, and hasn't hurt the value a bit. Nobody cares.

Great! Thanks for the feedback on Texas experiences specifically.

Originally Posted by gestalt1

I had a similar situation. I ended up getting the car registered in Vermont. You will need to pay sales tax on the blue book value for a good condition estimated price. That part sucks but it is way better than Illinois that requires a huge bond to be held for 3 years until they issue a title. Once you have the Vermont registration you can transfer it to your state and get an actual title. Or just leave it as registered and use the Vermont plates.

This is an interesting option!

Thanks to everyone for the guidance and suggestions!

2cam

[LakeCleElum]

Each state varies. In Washington: You get it inspected and then can register it. You don't get a title for 3 years. If no one disputes it, you get a regular title after the 3 years. You can even sell it during the 3 year period after disclosing the title issue.....

[SalParadise]

Originally Posted by LakeCleElum

Each state varies. In Washington: You get it inspected and then can register it. You don't get a title for 3 years. If no one disputes it, you get a regular title after the 3 years. You can even sell it during the 3 year period after disclosing the title issue.....

That's really a great law. Sure beats dealing with a headache of additional money, etc.