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Old 03-29-2009, 01:06 PM   #1
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How does title transfer work while buying from a dealer?

Yesterday, I bought a car from a man named Paul Leroy Taylor in Minneapolis, MN.

I'm starting this thread because it seems that neither he nor I really know how the process of buying from a dealer works. Paul was essentially a guy with a dealer's license - there was no big car lot or anything like that.

I signed the back of the title to transfer ownership to me. The name currently on the title was some other person who was not present. Is this normal? I talked to my dad about it on the phone, and he said that it should be fine. But I am quite paranoid about it. Paul said that he or one of his associates would take the title to the DMV monday to have it transferred over.

Should I be worried about this? How can I ensure that I do not get ripped off?
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Old 03-29-2009, 02:20 PM   #2
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Quote:
Originally Posted by 88FordFestiva View Post
Yesterday, I bought a car from a man named Paul Leroy Taylor in Minneapolis, MN.

I'm starting this thread because it seems that neither he nor I really know how the process of buying from a dealer works. Paul was essentially a guy with a dealer's license - there was no big car lot or anything like that.

I signed the back of the title to transfer ownership to me. The name currently on the title was some other person who was not present. Is this normal? I talked to my dad about it on the phone, and he said that it should be fine. But I am quite paranoid about it. Paul said that he or one of his associates would take the title to the DMV monday to have it transferred over.

Should I be worried about this? How can I ensure that I do not get ripped off?
First of we should keep specific names out.

Second, I wouldn't trust it unless the person on the title is really there to sign it over. Especially if the vehicle is stolen, you have now been deemed on knowing the vehicle was stolen because you saw that the person on the title was not present, which can result in a fine, if the vehicle is indeed stolen.

This also seems to be a private sale, I hope you have not paid him completely yet and let him keep the title. Personally, if I give someone the cash, they give me the title and keys, not they get to keep both. You can transfer the title yourself, they don't need to do it for you.

All that needs to be done is the original owner signs the title over to you. You give him money, he should then make a bill of sale stating the car is being sold over to you and for the amount, just for your records. Take it to title office and they finish everything out for you and you will either elect to get a new plate or transfer the car over onto an existing plate.
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Last edited by DrunkieTheBear; 03-29-2009 at 02:22 PM..
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Old 03-29-2009, 02:30 PM   #3
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yea, on the original title, the owner should have his signature and how much you paid for the car (preferably less than the amount, to save u at the MVA) but if the owner still has payments on the car IDK how you would go about it because he also technically dont have the title
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Old 03-29-2009, 05:52 PM   #4
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you should goto your local MVB to find out the details.
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Old 03-29-2009, 06:36 PM   #5
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the ppl above pretty much explained it, but good luck with everything.. hope you don't get screwed over, keep us updated
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Old 03-29-2009, 07:12 PM   #6
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every state has different rules about titles

talk to your local titleing authority.

Never buy a car from anyone without a title being handed to you.
if they don't have a lot then they aren't a legal dealer (haven't found a state that allows otherwise)
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Old 03-29-2009, 10:55 PM   #7
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+OK, first of all, if he is really a dealer he would know how to hande the paperwork and he would lose his license if he did illegal DMV stuff

2nd, "jumping title", which is what he did when he gave you the title. A dealer would send the signed-over title to the DMV and then they would send you a new title with your name only on it. By giving you the title, he forces you to do the paperwork.

That is something licensed Wholesalers might do, but not licensed dealers.

By jumping title, he avoided paying sales tax that was probably due...
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Old 03-29-2009, 10:57 PM   #8
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Quote:
Originally Posted by internetautomar View Post
every state has different rules about titles

talk to your local titleing authority.

Never buy a car from anyone without a title being handed to you.
if they don't have a lot then they aren't a legal dealer (haven't found a state that allows otherwise)
Why would a dealer hand you a title? Do dealers in your state make you do your own DMV paperwork?
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Old 03-30-2009, 05:05 AM   #9
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if he is a licensed dealer, his name does not have to be on the title. Most cases, he gets the car from an auction or trade in where the previous owners name is on the front, the previous owner should sign over the title (most cases over to the dealers name) but sometimes just signs it over. The dealer can pay ($25 in MA) to have the title put back in his name but is not required to do so. The dealer can attach a reassignment form and sell it out right. Dealer does not pay taxes on the car as he/she is technically not an owner of that vehicle. (notice that most times it doesn't show up as another owner when vehicle goes through an auction).

anyways, it is fairly common to have the title signed over to you, and get all the paper work in hand for you to go to the registry to pay taxes and get a registration. The dealer does not have to be present.

Be aware though, of paying the guy money and not having anything to prove that you purchased a car, as you might be headed for a world of problems.

Don't get too worried yet, go in and see what happens. It might be that this is a new dealer who is probably selling his first car in his life. (Everyone starts off somewhere).

Anyways, good luck and keep us posted.

It would be very wise of you to go onto your states official website and read up on the laws in your state as laws are different from state to state.
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Old 03-30-2009, 07:06 AM   #10
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As was stated above, if he was truly a dealer, he jumped title. A big NO NO.

I smell a rat.
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Old 03-30-2009, 09:33 AM   #11
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I've never heard of a dealer who just hands the customer the title, unless the customer was taking the vehicle out of state to register it.

Even then, then dealer has to fill out the paperwork for the state the dealer is in just to cover his butt.
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Old 03-30-2009, 03:13 PM   #12
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I talked to the local DMV today, and I told the lady everything about the title and how the transaction happened. She said that there were no red flags, and that it would likely all work out.

If not, it was not the largest sum of money, so I don't plan on bending myself out of shape about it.
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Old 03-30-2009, 06:12 PM   #13
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I trust instincts, you know the situation better then us. But to come on here and ask if you should be paranoid tells me that you are indeed a bit nervous about the transaction and trusting this person. Gut feelings are always right.

Just food for thought
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Old 03-31-2009, 12:12 AM   #14
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In the past when I bought car private party, I usually had them sign a "Bill of Sales" and i put their license info myself. Also, in CA, there is a portion on the pink slip for the seller and buyer that each take with him and send into DMV. I've bought a car from a person whose name is not on the pink slip, but it was signed by the original owner. Everything went smooth without a hitch at the DMV. My recent car, the dealer did not give me a pink slip. They printed out some forms and attached it to the window saying I purchased the car. They handled the paper work and I just waited til the pink slip was mailed to me.
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Old 03-31-2009, 12:12 AM
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