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I might be buying a very cheap car to clean up/tune up etc just to turn around to make a few bucks on it. Do I need to take the title and go to motor vehicle to get it in my name? If so how much does that cost? I wouldn't have to register it too, would I?
Well, it all depends on how legal you want to be, lol. If you don't get the title put in your name what you are doing is called "floating the title". This is illegal, but it is very hard for them to catch the fact that you did this. What basically happens is that you leave the signed title in the old owners name and then just have the new buyer fill it in as if they bought the car from the old owner. Like I said, that is illegal, but many people do it. Dealers do it all the time, but they have special rules regarding titles because of the amount of time it takes to process title work in their world. The only thing to watch out for is you don't want the old owner to date the title, because the titles must be legally transferred within 10 days of sale, or you have to pay a $25 penalty. So, if you choose to do this, make sure the date field stays blank until you pass it on.
The correct and legal way to do it is to go down to the DMV and have the title transferred. At this time you will also need to register the vehicle. You can either get a new registration and plates, or transfer an existing one you already have. You CANNOT transfer the old owners registration and plates, only ones you already have. When you go to DMV you will need to pay a $60 fee for the title transfer and another $46.50 or so depending on the year and weight of the vehicle for registration. The $46.50 quoted is for a vehicle greater then 2 years old, but newer then 1979 with a weight under 3,500 pounds. If you have a registration and plates to transfer, it only costs $4.50 for the transfer. You will also have to pay the appropriate sales tax at the time of titling. So, if you buy the car for say, $2,000 you need to pay $140 in sales tax at that time.
So, total cost for doing it legally = $106.50 (or more depending on registration, or less if you have plates to transfer) + 7% sales tax.
You need to factor in this cost when you are pricing the profit margin on your flip and the entire process can take up to 14 days, so if you were looking on making it a quick flip, you need to factor that time in as well. This is why a lot of people go the illegal way of "floating the title", but you can get in a lot of trouble for doing that because you are cheating the state out of its title and registration fees as well as its sales tax revenue.
Above is correct, however I think you can just transfer the title without re registering the car. The car would be officially off the road, not registered, not parked on a public street and no driving. You don't want to mess with that since if you do have the car out and get caught with no insurance your license is gone for a year, big consequences.
And some people won't buy it from you. When my husband was taking his nephew to look at used cars he told me many people tried to sell a car claiming that it was their car that they'd been driving regularly and he'd say "oh, so the title is in your name, right?". Maybe not that many people would think to ask though?
Personally if i was selling a car, and the "buyer" said not to date the title.
I would walk away.
As long as the title is in my name, I am responsible for it. tickets etc.
Why would I let a starnger take my car for whatever and I am still the legal owner?
As a buyer, if I was buying a car from someone, not the owner on the title, I would walk away. Can you say "stolen car".
Personally if i was selling a car, and the "buyer" said not to date the title.
I would walk away.
As long as the title is in my name, I am responsible for it. tickets etc.
Why would I let a starnger take my car for whatever and I am still the legal owner?
As a buyer, if I was buying a car from someone, not the owner on the title, I would walk away. Can you say "stolen car".
I think that's why you're supposed to turn your plates in maybe? You make a good point. Other states require you to notify the DMV that you sold a vehicle.
Personally if i was selling a car, and the "buyer" said not to date the title.
I would walk away.
As long as the title is in my name, I am responsible for it. tickets etc.
Why would I let a starnger take my car for whatever and I am still the legal owner?
As a buyer, if I was buying a car from someone, not the owner on the title, I would walk away. Can you say "stolen car".
A lot of people and dealers do it that way all the time, and if you have a title then it is presumed not stolen. Also a stolen vehicle would have or should have its VIN number listed as stolen.
Many people do check the VIN numbers on the car to see if they match the number on the title. That is recommended.
I think that's why you're supposed to turn your plates in maybe? You make a good point. Other states require you to notify the DMV that you sold a vehicle.
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!)
In terms of things like violations, those are all tied to the registration of the car. As long as you surrender the plates and registration to the DMV, or at least have possession of them, you won't have an issue on that end.
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