Buying a car just to flip/resell - do you need to put title in your name 1st? (transfer, inspection)
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Good point, and I recently experienced this firsthand.
I recently bought a used car in Connecticut. In addition to signing the title, the seller is required to prepare a Bill of Sale that the buyer must also sign. Seller then submits the buyer-signed BoS to the state to prove he sold the car... and so he no longer has to pay personal property tax on it.
(We don't have this kind of personal property tax in New Jersey yet... but please don't tell your Assemblyman!)
Yeah, I moved to VA and pay a personal property tax now; just got my semi annual bill from the county. At least my insurance is MUCH lower though.
Every transaction I've ever done, in NJ and elsewhere, I've either made or signed a bill of sale. I did it mainy because its at least some kind of record of the sale (its a few grand, might as well), but now I realize its good practice in case the jerk off who bought my car does something stupid with it and someone comes after me. And I guess if you never register the car in your name and just title it (like I've done with classic cars), you won't have any plates to turn in. I also require a copy of their drivers license in case the jerk off doesn't bring cash like I asked for and brings a bank check.
Say, in NJ, you sell a $500 car that you never registered but is titled in your name to some guy, and a month later, he rams the car into a deli to steal lotto tickets, cigarettes, and an ATM machine... I guess you could be in trouble. You'll probably be able to convince whoever that it wasn't you, but that's a headache that could probably be avoided with a bill of sale.
In NJ if you have old license plates from a car you no longer have you are supposed to turn them in to a DMV or NJMVC agency. They give you a receipt. Doesn't happen too often but they sometimes write you and ask about it since you're supposed to have insurance on a registered car.
Turning in the plates and reg avoids that stuff. Off course many of us have a collection oif old plates, some custom on the garage walls anyway.l
I would not let anyone drive a car even as a test drive unless it was insured (if the test driver hits a kid on a bike or another car, etc, you could be liable for allowing someone to drive an uninsured car), and I don't know if you can get it insured if it's in someone else's name?. When I sold my Mom's car, I put the title in my name to make it easier to sign over to a buyer. I did have to pay tax on the amount I said I bought it for, though.
The plate thing was a PITA. PA requires the plates to be mailed in, and although I asked for a receipt several times, they never sent one, and my insurance company wouldn't let me take it off my policy without the receipt. Finally they let me write a letter saying it was sold, though.
technically you should title it. then you will pay tax on it if you didn't already. you don't need to register it if you are not driving it.
For cars I sold (or when I moved) , I just stop renewing the registration. I know this isn't the right thing but there is no way I'm sitting on a DMV line to turn in my plates, especially when I dont live there anymore
Yeah, I moved to VA and pay a personal property tax now; just got my semi annual bill from the county. At least my insurance is MUCH lower though.
Every transaction I've ever done, in NJ and elsewhere, I've either made or signed a bill of sale. I did it mainy because its at least some kind of record of the sale (its a few grand, might as well), but now I realize its good practice in case the jerk off who bought my car does something stupid with it and someone comes after me. And I guess if you never register the car in your name and just title it (like I've done with classic cars), you won't have any plates to turn in. I also require a copy of their drivers license in case the jerk off doesn't bring cash like I asked for and brings a bank check.
Say, in NJ, you sell a $500 car that you never registered but is titled in your name to some guy, and a month later, he rams the car into a deli to steal lotto tickets, cigarettes, and an ATM machine... I guess you could be in trouble. You'll probably be able to convince whoever that it wasn't you, but that's a headache that could probably be avoided with a bill of sale.
There would be no record of you owning the vehicle really. right?
The SELLER should make sure you sign the title. Then you have no choice but to title it IF you want to re-sell it.
I'm probably going to strip the whole car down to sell parts on ebay and craiglist as I've done this before BUT does anyone think that a scrapyard would care if a tow guy showed up with a carcass like the one pictured here had the title in the correct person's name?
A friend of mine who lives in NY sold a car, over there they have those windshield stickers with a bar code, he left that on. Wound up getting his license suspended when the new owner kept getting parking tickets tied to that sticker. They scan that when they write the ticket.
Different in NJ, we just have the inspection sticker and that stays on the car, valid for as long as it is good.
I'm probably going to strip the whole car down to sell parts on ebay and craiglist as I've done this before BUT does anyone think that a scrapyard would care if a tow guy showed up with a carcass like the one pictured here had the title in the correct person's name?
They are usually pretty sensitive to you having the title on the car that is being sold for scrap, it's a chain of custody issue for them. Some places will take it without a title, but will pay less because they then have to get it all straightened out. If it was me, I would pay to title it, but only claim scrap value and show them pictures of the chassis. You'll end up paying a small amount of tax and the titling fee, but you should get that back in scrap value if the yard doesn't need to mess with the title.
The obvious answer though is to just call the scrapyard you are thinking of selling to and ask them.
They are usually pretty sensitive to you having the title on the car that is being sold for scrap, it's a chain of custody issue for them. Some places will take it without a title, but will pay less because they then have to get it all straightened out. If it was me, I would pay to title it, but only claim scrap value and show them pictures of the chassis. You'll end up paying a small amount of tax and the titling fee, but you should get that back in scrap value if the yard doesn't need to mess with the title.
The obvious answer though is to just call the scrapyard you are thinking of selling to and ask them.
This is what can happen if the party that you buy a car from has not registered the car in their name. People who buy and sell cars privately, commonly do not put the vehicle in their name. 1st reason, most states have a law how many cars a private party can buy and sell within one year without requiring a dealers license. In some states this is referred to as jumping title, For all the scoffers who think people should be able to do whatever they want you might want to tune them out. People are buying and selling these cars as a means of income and 99.8 percent of private parties doing this do not report this income to the IRS. That is one reason they do not put the car in their name. When you buy a car from one of these people they will no doubt give you some song and dance about not having the title at the moment you buy the car but they will promise to get the title to you.......(WHEN?) They may give you a bill of sale.....but you have no idea if the name they sign on the bill of sale is theirs. When you attempt to go back and contact these people, no one comes to the door and no one answers the phone or returns your call. Legitimate private parties who are just trying to sell the family car so the can get a little more than a dealer would offer them will have their ducks in a row and you will know they're a little more trustworthy because they will be prepared with the necessary paperwork. This happened to me. Eighteen months later when I was able to buy a newer car, I wanted to sell the car that I purchased from the private party but still did not have the title despite constant efforts on my part to get it. I had to take legal action against the man....and guess what? When I did, it took him less than 24 hours to hand over the title. I just bought my kid a car from a private party who had an "as is note", the title and all of the maintenance and repair records ready to hand over to me, plus the factory owners manual. Not every person is trying to pull a deal on you but I would certainly beware.
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