Texas Bonded Title

[victorialynn2]

Have you ever purchases a car with a bonded title, specifically a Texas title? It protects the new purchaser but I'm wondered how the "perception" is out there? It shouldn't affect value, but what has been your experience? 

[Digger914]

Perception is perception and Bonded Title is a valid registered transferable state title. Never seen a Texas bonded title, expect it will be marked Bonded on the title like other states mark theirs. Bonded presents considerably better than Duplicate, which always leaves the question of where is the other title and will it pop up and cause trouble sometime in the future.

[Matt Harwood]

Bonded is temporary--there's a time limit on the bond. Basically, it's an insurance policy that you buy in case the guy with the other title shows up and claims the car. I believe it lasts two years and then the title becomes incontestable. So I wouldn't worry about it being transferable or a potential buyer getting cold feet. Either he gets his money back or he gets a 100% valid title when the clock runs out. He's really got nothing to lose.

 

Duplicate titles aren't a big deal--we get them once in a while simply because the guys who buy cars from us lose the paperwork we send them. I had one guy lose it three times--enough that the DMV thought something fishy was going on. But a duplicate title shouldn't be cause for alarm; all it means is that a second title was supplied. It still contains all the same information as the first title, so it's not like someone else can show up with the other one and claim he owns the car now. The first title is typically voided and most titles have an issue date, so the DMV can quickly ascertain a bogus claim using an old title. Duplicate doesn't mean blank or stolen. It's pretty common--I'd say as many as 20% of the cars we get have duplicate titles simply because the originals were ancient and lost. No demerit here and the "duplicate" condition vanishes as soon as a new owner takes title to the car.

 

A salvage title is the problematic one. Makes the car VERY hard to sell. People get very skittish about salvage titles, suspecting that the car has been destroyed, wrecked, burned, drowned, or all kinds of other bad things. The truth is, a salvage title is issued when an insurance company "totals" a car--essentially paying the owner a set value and taking possession of it. It may not be wrecked, it may just be that the car is worth less than the cost of repairs. We had a '73 Plymouth 'Cuda with a salvage title. It was undergoing a full rotisserie restoration when a divorce happened. The wife got the car, called the insurance company, they saw a bare shell, an engine block, and some seats and realized that a pile of parts wasn't worth very much and simply paid her off. The ex-husband bought the car from them and finished it, but it was forever marked with a salvage title. Not wrecked or ruined, but an insurance adjuster decided that it would cost more than it was worth to make it back into a car. He was probably right, but a salvage title really hurt the car unnecessarily.

 

Don't sweat the bonded title. If push comes to shove, hang on to it long enough for the bond to run out, then sell it. But a buyer shouldn't balk at it unless he grossly misunderstands what it means (buyers are a suspicious lot, they expect to be lied to).

[victorialynn2]

 

Thanks guys. In Texas the bond last 3 years, then a normal title can be issued. The new owner will not have to give up the car under any circumstance. Worse case would be a new owner claim comes along and the bond pays him out if he can prove it's his. 

 

I just was curious if there was some kind of stigma, or if some states are weird about them, as not all states do bonded titles. 

[Joe in Canada]

I bought a 66 Biscayne post car with an original BB in New Mexico 12 years ago and got it through US & Canadian customs with a bonded title. Then licensed it in Canada and no one ever questioned it any time. 

[JACK M]

Interesting this thread came up.

I have a guy in Idaho that wants to do some swapping and his car has a bonded title that scared me away.

But it is approaching two years since and we are both still interested.

Oregon makes it very difficult to bring out of state vehicles in the first place as they have to have a vin inspection.

[Matt Harwood]

Out-of-state VIN inspections are easy. We're authorized to do them here. We just verify that the numbers on the car match the title. That shouldn't be something that scares you away from an out-of-state car. It's pretty standard in most states now. No big deal.

[JACK M]

Doesn't really scare me away if the numbers are correct.

But it involves trailering up (most of my projects don't run when acquired) and a trip to the DMV, one of my least favorite places.

I don't think Oregon allows any private vin inspections.

Edited December 12, 2016 by JACK M (see edit history)

[victorialynn2]

I called Oregon DMV today and they said they accept bonded titles. 

1 hour ago, JACK M said:

Doesn't really scare me away if the numbers are correct.

But it involves trailering up (most of my projects don't run when acquired) and a trip to the DMV, one of my least favorite places.

I don't think Oregon allows any private vin inspections.

Jack, do you have to trailer even with a bonded title? Is that the case with any out of state title then because they should treat them the same. I do have matching numbers so that isn't an issue. 

[victorialynn2]

I called Oregon again and I guess there is a Form 550 that you have to submit with records of ownership that they review to provide the new title. Oregon seems to make everything more difficult. I found this out with my POA. What works in Texas is more complicated in Oregon. I had to get guardianship and they wanted me to get something else for financial matters, but because all of my father's property is in Texas, I can use the POA as long as I don't transfer anything. Basically it means more attorney fees and paperwork to the state. It's not useful at all. 

[JACK M]

Sounds like you already have it figured out.

But I am guessing the short answer is yes, any vehicle that is not titled in Oregon and is applied for title in Oregon must have a vin inspection. Its an extra fee. Not much, I think 7 dollars.

As far as any agent that is outside of the DMV itself to do this I have not heard of. I guess it is possible that a sheriff might be able to do it but I have never tried that.

If the vehicle is already titled in Oregon all you have to do is transfer the title. I remember the days when Oregon was the most reasonably priced DMV around. It used to cost seven dollars to transfer a title and twenty bucks got you two years of tags. Not so much now, I think its $79.00 to simply transfer a title. and about the same for the two years. (passenger car or light pick up truck).

Now that pot is legal and the state is happily surprised that the forecast tax revenue is about four times what they expected maybe some of the inflated taxes and fees will go down.

NOT !!!!   (Boy, am I dreaming) !!