If you run a small independent car dealership, you need to take steps to avoid issues with the title. The best way to accomplish the transfer of title is to either go directly through the DMV, or through a title transfer service. Either way, title transfer should occur as soon as possible, after the sell of your vehicle. Here are just three of the reasons why title service to ensure that title transfer occurs as quickly as possible after you sell a car.
If you sell a car from your lot without transferring the title to reflect the new owner, you run the risk of being liable for everything that happens, from that point on. Unfortunately, that means if the new owners are involved in a car accident, you could be held liable for the injuries and damage. Also, if the car is used in the commission of a crime, and your name is still on the title, law enforcement officials will come looking for you while they're attempting to identify the suspects. You can avoid both of those situations by visiting a title service to have ownership legally transferred as soon as you sell your car.
Avoid Insurance Issues
If you don't transfer ownership once a car leaves your lot, you won't be able to remove it from your insurance policy. That's because you'll still show as the legal owner of the vehicle. Until the transfer is complete, you'll need to continue insuring that vehicle under your dealership coverage. If you do remove the car from your dealership coverage and the new owner gets pulled over, they'll simply have to say that they don't own the car. Unfortunately, that means you'll receive the inquiries regarding insurance protection. You can avoid the risks and the insurance issues, by transferring ownership as soon you sell the car.
Avoid Title Jumping
If you're going to sell a car off your lot, you need to follow the steps to ensure proper transfer of ownership. Once the transfer is complete, the new owners name will appear on the title. If you haven't transferred ownership of the car into your own name yet, you need to do that before you put your car on the market. Failing to transfer title before you sell the car could be considered title jumping, which is against the law. Title jumping is the act of selling a car without transferring ownership into your own name first. Before you sell a car off your lot, work with a car title service to have ownership transferred into your name, first.