Title Jumping

[Bud]

I have encountered some situations recently where the current "possessor" of a Model A (usually from an estate where the "owner" is dead) has titles for vehicles that "owner" failed to put in his name. The titles are in the name of the person the "Possessor/Owner" purchased the vehicle from. As I understand this, if the current living entity (daughter, son, relative) never put it in their name, and they sell the vehicle, they have "jumped title" and avoided paying state sales tax on the first transaction. Also, as I understand it, this is illegal. Is the next buyer responsible for the prior transaction's tax? And also the final transaction's tax? What are the ramifications if this is out of state? Does that make it a Federal felony?
I recently saw where the title had been signed over to a man's father but he never re-titled the car in his name. The man's father is dead, but the title never was processed through the estate. I am guessing this happens a lot in people who just have car collections and mostly do not drive the vehicles, just trailer them to shows and trailer them home. Let me know what you all think of these questions. Thanks.

[Gene F]

I NEVER buy a car unless the title work is 100% clear. I don't care how good the price is. The title must be in the sellers name, and the VIN marches. I bought one expensive vehicle, but the title was in the decesasseds name, and the sons were he executor. I promptly took the title to the courthouse, and got it in my name. This thing about avoiding taxes is no a smart move. If you can't afford the taxes, you can't afford the car.

I might add; whenever I see an add for a car, and there is no price, I don't even consider the car. No price tells me that the car or item is markedly overpriced to start with, and no one likes to feel cheated.

[1931 flamingo]

Usually (in CT anyway) tax is collected when the vehicle is registered.
Paul in CT

[tmiller6]

In Michigan if the new owner is a relative as defined by the Secretary of State, no use tax is due and the title transfer is only the paper work fee. I can't see why anyone would jump the title if they inherited the vehicle and decided to sell it.

[ronn]

Bud, when you have a yard sale and take in cash- do you inform the irs about every cent youve earned?

not really much different.......

[Synchro909]

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Having titles for cars is unfathomable for me. WHY have them?

[Gene F]

Synchro909, I agree, but it comes down to taxes. Governments say they need these instruments to deter auto theft, which is nonsense. The fact that not all states require titles tells us something.

A lot of states don't really want older cars on the road, so this is a easy way for them to thin the herd.

[Gene F]

Originally Posted by Bud

I have encountered some situations recently where the current "possessor" of a Model A (usually from an estate where the "owner" is dead) has titles for vehicles that "owner" failed to put in his name. The titles are in the name of the person the "Possessor/Owner" purchased the vehicle from. As I understand this, if the current living entity (daughter, son, relative) never put it in their name, and they sell the vehicle, they have "jumped title" and avoided paying state sales tax on the first transaction. Also, as I understand it, this is illegal. Is the next buyer responsible for the prior transaction's tax? And also the final transaction's tax? What are the ramifications if this is out of state? Does that make it a Federal felony?
I recently saw where the title had been signed over to a man's father but he never re-titled the car in his name. The man's father is dead, but the title never was processed through the estate. I am guessing this happens a lot in people who just have car collections and mostly do not drive the vehicles, just trailer them to shows and trailer them home. Let me know what you all think of these questions. Thanks.

Bud, I'm in Ohio too. Not really specific to your question....I had a business car once where the gentleman retired, and I sent a letter to the county clerk ( I think that's the department...) with a SASE a letter explaining why I needed a replacement title with what info I knew. and a check for $5 and they sent me a new title in ab couple of weeks. I think I found an old registration in the glove compartment, and sent a phot copy of that too. These people that have no title and sell the car at auction because the aire has passed are cheating themselves.

[Mulletwagon]

The standard advice with any title transfer which is not 100 percent clear and clean is check with your local DMV before closing the deal and dropping $$.

[Synchro909]

Originally Posted by Gene F

Synchro909, I agree, but it comes down to taxes. Governments say they need these instruments to deter auto theft, which is nonsense. The fact that not all states require titles tells us something.

A lot of states don't really want older cars on the road, so this is a easy way for them to thin the herd.

I'm 73 and I can't remember there ever being titles here and believe me, our Government doesn't miss an opportunity to rip us with taxes whenever they can. If we are buying a (modern) car, there is a number we can ring to find out whether the car is stolen and if there is any money owed on it. With that info in hand, it's up to the seller and buyer. Titles seem to me to be a very cumbersome and inefficient way of doping things. Maybe it's just that I am used to something different.

[Patrick L.]

Used to catch car dealers jumping title a lot, one of my pet peeves.

But, an individual doing it with an old car shouldn't be much of an issue. Here the car numbers are run and if they come back clean the paperwork will/should go thru. Some other states may be more picky about old iron. And the tax is paid on what the vehicle is sold for. [ wink ].

[brokenspoke]

Depends on the State

[todd3131]

Right now I am trying to sort out the process for getting a title for a 29 A that we bought in 1983, we restored the chassis and stopped on it and gave my half to my friend. He wants to give me back the car but I don't have the bill of sale anymore and it has been in 4 states over the last 40 years. I am going to have to get a bonded title I think.

[Chris Haynes]

I don't worry about titles. I check the serial number and have DMV run it. If it comes back without being stolen I buy it. I have found it very easy to get a vehicle title. If it has an old title which is signed off all the better, no matter who's name it is in.