Buying a Truck without a title in Texas

[dwcsr]

I just wanted to relay some information I just got about buying untitled trucks in Texas. This is only for trucks purchased in Texas and did not have a tile from somewhere else and do not show up in the system.

If you purchase a truck that is not in the Texas registration system the following can apply:

You need to get an appraisal of the vehicle prior to titling otherwise you can be charged sale tax on Blue Book value. You will then need to get a bonded title which is a percentage of blue book value. While this sounds simple and easy here's the example I just went through trying to sell a 49 3600 fresh off the farm for $2200.

The buyer called a title company (his friend) and ran the vin, It came back as not in the system, He was told that the high for the blue book was $29K, mid was $10k and low was $4200. He was told that DMV or the tax office would pick the middle number if he did not have an appraisal for actual purchase price and value plus he needed a $1500 bond on the title.

So a $2200 truck before it is even running would have cost him
$2200 for the truck
$262 Taxes
$1500 Bond, I think it’s a percent of the NADA value
$3962 total, before he turned a wrench on it and without the appraisal cost. I suspect that would be about $100-$200.

This has just been changed in the last year or so. Prior to that it was much simpler and bill of sale for actual cost was used and the bond was cheaper.
The problem is all these cars and trucks that didn't get titled prior to you dumping in 15 to 20K will get taxed at the high or mid value mark or current appraisal price of whatever you own , 63 Corvette, 69 Camaro , ouch, plus the percentage bond, ouch again.

Take detailed pictures of your vehicle that you buy as supporting evidence of the purchase price, keep all the receipts for parts and services purchased and also if you buy used parts get a bill of sale for them from the seller noting casting numbers or vin/serial numbers. Get an appraisal and title prior to doing any work on it.
It just confirms what I have always said. If it doesn't have a title it’s a parts truck.

This all started from these west coast high dollar car builders selling the vehicle to the customer at the unrestored price and the billing seperately for the resto work for which there is no tax on the labor part of it. You and I know the vast majority of the cost is in the labor. Once California investigated Coddington and the like the other states followed.

http://www.hotrodsandclassics.net/Temp/HandsUp.htm is a good article on it.

[Dan Bowles]

Man. I think it is best to just make sure it has a title! Let the current owner sort it out or sell the dang thing a lot cheaper!

As said many times before here, know the rules in your state before you buy an untitled truck or car. It is getting harder every day.

[lwilliam22]

I too went threw this with bot of my trucks. I was told before I could go the bonded title way I needed to take the truck to police station to have them search for "hidden " numbers. Well this truck is already sitting on a s10 frame but that didn't matter to them. By doing this if ey clear it they would then allow the truck to be issued a new vin and be titled as a 2010 chevy truck,lao I'm still in the air as to what I'm going to do with that truck
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[72lb4x4]

The process for getting a title in Texas when there is none is documented on the TX DOT, DMV, and tax appraisal web sites. There's no need to worry about what goes on in California, or what a friend of a friend went through.

Needless to say, it's a bad idea to do any work to a vehicle that you doesn't legally own; that is, have a title to in your name.

[dwcsr]

Originally Posted by 72lb4x4

The process for getting a title in Texas when there is none is documented on the TX DOT, DMV, and tax appraisal web sites. There's no need to worry about what goes on in California, or what a friend of a friend went through.

Needless to say, it's a bad idea to do any work to a vehicle that you doesn't legally own; that is, have a title to in your name.

Not sure what you mean but there is no friend of a friend involved in this case. I'm sell and the buyers friend is a title company expert in Texas. CA was mentioned only as why it is so hard to transfer old trucks these days and Texdot says what I have said.

But at any rate I think this will be a good time to document what actually happens during this process in Texas. I will post what happens when each step is done and what they do actually ask for and of course the costs involved.

Step one is get the appraisal so I can get a taxable value. I have form #14-128
http://www.window.state.tx.us/taxinf...rms/14-128.pdf


Effective October 1, 2006, Tax Code Section 152.0412 states:

Eligible appraisers:

Licensed Texas motor vehicle dealers can appraise the categories of motor vehicles that they are licensed to sell. That
is, automobile dealers can appraise automobiles, motorcycle dealers can appraise motorcycles and trailer dealers can
appraise trailers. Licensed dealers include new and used vehicle dealers, wholesale dealers, wholesale auction dealers,
motorcycle dealers, trailer dealers and any other dealers licensed by Transportation Code, Chapter 503, Subchapter
B, but not a drive-a-way operator

Luckily the guy I purchased this from was a dealer in vintage vehicles. So thats where I'm headed this week

[72lb4x4]

I'm having trouble keeping up with who you are in this process... You seem to be both buyer, seller (sell), and someone who is just providing info related to what someone you know is going through.

I've gone the bonded title route, and it involved reading up on what the process was on the internet, printing pics of the car and VIN plate, going to the DMV to get a title check, getting a few estimates of value from 3 tote the note dealers written on their business cards, getting a bond for 1.5 times the highest value estimate and then to the tax appraiser to get the title paperwork done.

All this took about 4 hours.

[dwcsr]

Originally Posted by 72lb4x4

I'm having trouble keeping up with who you are in this process... You seem to be both buyer, seller (sell), and someone who is just providing info related to what someone you know is going through.

I've gone the bonded title route, and it involved reading up on what the process was on the internet, printing pics of the car and VIN plate, going to the DMV to get a title check, getting a few estimates of value from 3 tote the note dealers written on their business cards, getting a bond for 1.5 times the highest value estimate and then to the tax appraiser to get the title paperwork done.

All this took about 4 hours.

What was the cost of the bond? What was your car appraised at and what year did you do it?

I am the seller in this deal. In the third paragraph in the first post it says. "While this sounds simple and easy here's the example I just went through trying to sell a 49 3600 fresh off the farm for $2200"

[Houston54]

The following was taken from the TxDOT website regarding presumptive value:


Vehicles Not Subject to Taxation based on Standard Presumptive Value

•New vehicles (not previously titled)
•Vehicles purchased from licensed dealers (dealers use purchase price only)
•Vehicles purchased at a governmental or foreclosure auction
•Vehicles 25 years old or older
•Off-road vehicles, such as dirt bikes or all-terrain vehicles (ATVs)
•Salvage or abandoned vehicles (except rebuilt salvage vehicles)
•Vehicles sold through a mechanic or storage lien
•Vehicles given as gifts to eligible applicants
•Even-trade vehicles, when vehicles of equal value are swapped by the owners

[dwcsr]

Originally Posted by Houston54

The following was taken from the TxDOT website regarding presumptive value:


Vehicles Not Subject to Taxation based on Standard Presumptive Value

•New vehicles (not previously titled)
•Vehicles purchased from licensed dealers (dealers use purchase price only)
•Vehicles purchased at a governmental or foreclosure auction
•Vehicles 25 years old or older
•Off-road vehicles, such as dirt bikes or all-terrain vehicles (ATVs)
•Salvage or abandoned vehicles (except rebuilt salvage vehicles)
•Vehicles sold through a mechanic or storage lien
•Vehicles given as gifts to eligible applicants
•Even-trade vehicles, when vehicles of equal value are swapped by the owners

It is entirely possible that the buyers friend got it wrong. It makes more sense that an older truck would be based on actual transaction value not NADA. We'll find out soon in a week or so..

[72lb4x4]

I did it a few years ago, the estimated value was $1000, so the bond was for $1500, and cost $150.

There is the possibility of a title hearing, storage lien, or mechanic's lien as well to get a title.

[dwcsr]

Originally Posted by 72lb4x4

I did it a few years ago, the estimated value was $1000, so the bond was for $1500, and cost $150.

There is the possibility of a title hearing, storage lien, or mechanic's lien as well to get a title.

I have heard about leins to get title. I contated a title company in Texas and they tell me that $365 gets me the paperwork and bond to bring to the Tax office, this is for a title ony transfer.

[72lb4x4]

Why pay someone to do something you can do in a couple hours?

[dwcsr]

I need the bond. where did you get the bond from?

[72lb4x4]

Insurance agencies sell the bonds.
Either the DMV or tax assessor people provided a list of insurance agencies.

[bobscrewcab]

bring it to arkansas and all it will cost you about 200 bucks if its an older truck or car.
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[dwcsr]

Originally Posted by bobscrewcab

bring it to arkansas and all it will cost you about 200 bucks if its an older truck or car.
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I had thought of that but we in Texas like to charge a fee for out of state vehicles getting titled here in Texas. I think its would be almost as much as a bond.

[lwilliam22]

Well all I know is that when I went threw all this it made me realize the extra value of a truck with a title. They are rude and talk to you like you should have already known the process. Some good info still.
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[mr48chev]

Originally Posted by 72lb4x4

The process for getting a title in Texas when there is none is documented on the TX DOT, DMV, and tax appraisal web sites. There's no need to worry about what goes on in California, or what a friend of a friend went through.

Needless to say, it's a bad idea to do any work to a vehicle that you doesn't legally own; that is, have a title to in your name.

Best quote and words of wisdom I have seen on the net this month.

If you buy one without a title just do enough to get the thing drivable and legal and run it through to get a title and that includes sticking a get by engine and trans in it if you have to. Then it is a beater work truck rather than a "classic" truck. That goes for anyone in any state, not just Texas.

First off though, do your homework and find out what your state requires to get a title as no two states seem to be anywhere near close to the same on this.

[blackdiesel]

Originally Posted by bobscrewcab

bring it to arkansas and all it will cost you about 200 bucks if its an older truck or car.
Posted via Mobile Device

As long as the bill of sell is not over 2500 bucks it is less than $20. And that is all you need no vin check no appraisal. you have to put antique tags on it, and their good for life.

[dwcsr]

Originally Posted by mr48chev

Best quote and words of wisdom I have seen on the net this month.

If you buy one without a title just do enough to get the thing drivable and legal and run it through to get a title and that includes sticking a get by engine and trans in it if you have to. Then it is a beater work truck rather than a "classic" truck. That goes for anyone in any state, not just Texas.

First off though, do your homework and find out what your state requires to get a title as no two states seem to be anywhere near close to the same on this.

To give a little background on this truck. I purchased it knowing it did not have a title never intended to sell it. I buy trucks to strip them and sell the parts and this was in a group of trucks I purchased and slated to be dismantled but was just a little to good, so I delayed and delayed and someone ask to buy it so thats how we came to the current issues with titling.

Here in Texas it does not have to run but it does have to be complete to get a title.

I fully subscribe to the "if it doesn't have a title its a parts truck " theory

[WIDESIDE72]

Originally Posted by dwcsr

I just wanted to relay some information I just got about buying untitled trucks in Texas. This is only for trucks purchased in Texas and did not have a tile from somewhere else and do not show up in the system.

If you purchase a truck that is not in the Texas registration system the following can apply:

You need to get an appraisal of the vehicle prior to titling otherwise you can be charged sale tax on Blue Book value. You will then need to get a bonded title which is a percentage of blue book value. While this sounds simple and easy here's the example I just went through trying to sell a 49 3600 fresh off the farm for $2200.

The buyer called a title company (his friend) and ran the vin, It came back as not in the system, He was told that the high for the blue book was $29K, mid was $10k and low was $4200. He was told that DMV or the tax office would pick the middle number if he did not have an appraisal for actual purchase price and value plus he needed a $1500 bond on the title.

So a $2200 truck before it is even running would have cost him
$2200 for the truck
$262 Taxes
$1500 Bond, I think it’s a percent of the NADA value
$3962 total, before he turned a wrench on it and without the appraisal cost. I suspect that would be about $100-$200.

This has just been changed in the last year or so. Prior to that it was much simpler and bill of sale for actual cost was used and the bond was cheaper.
The problem is all these cars and trucks that didn't get titled prior to you dumping in 15 to 20K will get taxed at the high or mid value mark or current appraisal price of whatever you own , 63 Corvette, 69 Camaro , ouch, plus the percentage bond, ouch again.

Take detailed pictures of your vehicle that you buy as supporting evidence of the purchase price, keep all the receipts for parts and services purchased and also if you buy used parts get a bill of sale for them from the seller noting casting numbers or vin/serial numbers. Get an appraisal and title prior to doing any work on it.
It just confirms what I have always said. If it doesn't have a title it’s a parts truck.

This all started from these west coast high dollar car builders selling the vehicle to the customer at the unrestored price and the billing seperately for the resto work for which there is no tax on the labor part of it. You and I know the vast majority of the cost is in the labor. Once California investigated Coddington and the like the other states followed.

http://www.hotrodsandclassics.net/Temp/HandsUp.htm is a good article on it.

All true except for the bond fee. You pay the bond co. 10% of the actual bond amount. Been there, done that with a 62 Mercury Comet.

[dwcsr]

Originally Posted by WIDESIDE72

All true except for the bond fee. You pay the bond co. 10% of the actual bond amount. Been there, done that with a 62 Mercury Comet.

The bond fee now is $15 per hundred with a $100 minimum. On $500 its costing $125.

[no moa]

wow what a pita. Maine just says hand over the Bill o sale and register it. They laugh at titles before 94. bag actually laughed at me on the phone with DMV.

[OrrieG]

Things sure have changed since the early 70's. I titled my VW van off a bill of sale in El Paso in 1972 with no hassle. Here are before and after photos just because...

[dwcsr]

Originally Posted by no moa

wow what a pita. Maine just says hand over the Bill o sale and register it. They laugh at titles before 94. bag actually laughed at me on the phone with DMV.

It is a pia. I can go to a title hearing and request a clear title first and if they reject my application then I can apply for a Bonded title rather than going for a bonded title first. The hearing is free and I may try that first the if it fails I'll get a bonded title.