Owning a car comes with a seemingly endless paperwork. The most important piece of paper that comes with buying a car is the car title. However car titles come in many different types. One of those types of title is the bonded title. Let’s take a look at what the bonded title is and if you can sell a car with bonded title.
What is Bonded Title?
A bonded title is a type of title that car owners need to verify ownership of a car. The only visual difference between a normal car title and a bonded title is the word “bonded” across the top of the title.
Why would you need a bonded title? If you happen to lose your title or need a replacement title, then you will need a solution. However if you are unable to verify ownership through other means, it will be tough to get a new car title.
That is where the bonded title comes in. The first aspect of the bonded title is the bond. This is something you can purchase from a surety company or a bond company. By buying a bond, you are essentially buying your proof of ownership.
The surety company will send you a bond which is designed to show your proof of ownership. The bonding company is taking a risk by guaranteeing your proof of ownership with no title, but that is why you buy the bonded title with cash.
How Much Does a Bonded Title Cost?
The cost of a bonded title will vary depending on your location and your financial situation. If you are not well off financially or you are in debt then a bond company may charge more. This is because they are liable for the cost of surety for the bond.
The cost of a bonded title can also be measured depending on the value of your car. Some surety companies will value the bond between 1x and 2x the value of your car. However you will only need to front a percentage of this to buy the bond. On average a bonded title will only cost $100.
Selling A Car With Bonded Title
If you are looking to sell your car, then we are here to help. That being said it is a bit harder trying to sell a car with bonded title.
First you will need to find a buyer. We buy cars with bonded title, but it is important to know how the process of doing so will work. Your car title needs to be worked out before the sale can take place.
If you have bonded title, you will need to take the steps to get a full replacement title. Your bonded title can be transferred but car buyers will not want to be given a title with a bond.
You will need to visit your local DMV to get your title situation sorted out. The DMV should be able to work through your records to confirm you are the rightful owner of your car. Once they do, you can get a replacement title.