Description:

• Introduction:
  • Purchasing a motor vehicle is one of the most common large consumer purchases in the United States.
  • Unlike buying a shirt or a house, almost everyone buys a vehicle at some point, whether from a private party, a dealer, or an online platform like eBay or Craigslist.
• Key Points About Vehicle Purchasing:
  • Vehicles are typically purchased through licensed dealerships, which are regulated by state authorities (usually the Department of Motor Vehicles).
  • Licensing provides protection and recourse in case issues arise with the vehicle purchase.
  • The most critical part of the vehicle purchase is getting the title to the vehicle.
• Common Issues with Vehicle Titles:
  • Dealers may sometimes face problems in transferring the title to the buyer.
  • Large-scale title issues have been reported with online retailers, such as Carvana, which has faced challenges nationwide in obtaining clear titles for vehicles.
• Example: Carvana's Title Issues:
  • Carvana, an online vehicle retailer, has been facing title problems in all 50 states.
  • The company’s rapid sales model and national reach sometimes make it difficult to ensure clear titles before selling cars.
  • In Colorado, the Department of Revenue noted that this issue has been widespread, with complaints coming from nearly half the state’s counties.
• How to Address Title Problems:
  • If you encounter title issues, there are complaint forms available through the licensing authority in every state.
  • These forms help you report missing titles, delays, or improper advertising by dealers.
• Temporary Tags and Title Delays:
  • Dealers can issue temporary paper tags to allow you to drive the car while waiting for the title.
  • If you don't receive your title in a reasonable amount of time, the dealership may issue a second temporary tag, which is not allowed.
  • Promptly file a complaint to speed up the investigation process.
• What Happens Behind the Scenes:
  • With online retailers, vehicles are often purchased through auctions where the title may not be immediately available.
  • In some cases, the title is missing, lost, or delayed due to the complexities of vehicle transfers.
• What to Do If You Face Title Issues:
  • As soon as you notice a title issue, fill out the appropriate complaint form for your state.
  • Keep in contact with the dealer and apply pressure to resolve the issue.
  • If after 30 days the title hasn't been issued, directly contact your state’s DMV to check on the title’s status.
• Buying a Vehicle: What to Ask:
  • Before buying, ask the dealer if they have the title for the vehicle.
  • After purchasing, follow up with the dealer to confirm that the title application has been submitted.
  • If you don’t receive the title after 30 days, check directly with the DMV.
• The Risks of Delayed Titles:
  • Without a valid title, you can’t register or drive the vehicle.
  • If there’s a loan on the car, the bank will require the title to secure the loan, which could lead to additional complications.
• Challenges with Lost or Damaged Titles:
  • If a title is lost or damaged, it can be extremely difficult to replace because the original document is required.
  • Only the person whose name appears on the title can request a duplicate, making it challenging if the title was last held by someone else.
• Conclusion:
  • Always ensure that the title transfer process is properly handled when purchasing a vehicle.
  • Don’t take the title transfer for granted—act quickly if issues arise to avoid being left with an unregistered vehicle.