What Are the Risks of Selling a Car with No Title?

Selling a car without a title creates legal risks for both parties. You could face liability if ownership disputes arise later. The buyer risks purchasing a stolen vehicle or one with hidden liens. These risks explain why no-title transactions pay less and require extra verification.

Risks for the seller:

  • Legal trouble if you don’t actually own the vehicle
  • Liability if the car is later connected to theft or fraud
  • Difficulty proving you sold the car if it’s ticketed or impounded later
  • Lower payment due to buyer’s increased risk
  • Fewer buyers willing to make offers

Risks for the buyer:

  • Purchasing stolen property (criminal liability)
  • Hidden liens that make the car legally encumbered
  • Ownership claims from previous owners or family members
  • Inability to obtain proper salvage documentation
  • Regulatory fines for improper vehicle acquisition

Protect yourself by:

  • Getting a duplicate title before selling (best option)
  • Keeping copies of all transaction documents
  • Using a bill of sale that includes VIN and both parties’ information
  • Selling only to licensed, reputable buyers
  • Notifying your DMV that you no longer own the vehicle

Legitimate junk car buyers follow state processes to minimize these risks. They verify VINs, check for theft reports, and document transactions properly. Working with an established buyer like Junk Car Medics reduces your exposure compared to selling privately without documentation.

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