Selling a car with no title creates legal, financial, and practical risks for both the seller and buyer.
Risks for sellers:
- Continued liability: Without proper title transfer, your name may remain on the vehicle record. If the car is abandoned, towed, or involved in a crime, you could be held responsible.
- Lower offers: Buyers pay less for no-title vehicles because they assume more risk and face extra costs to obtain ownership documents.
- Fewer buyers: Most dealerships, private buyers, and many junkyards refuse to buy cars without titles, limiting your options.
- Legal issues: Selling a vehicle you cannot prove you own may raise questions about theft or fraud, even if the car is legitimately yours.
Risks for buyers:
- Stolen vehicle: A car without a title may be stolen. Purchasing it makes the buyer liable for possessing stolen property.
- Ownership disputes: The actual owner or a lienholder could claim the vehicle, leaving the buyer with no car and no refund.
- Registration problems: Without a title, the buyer may be unable to register, insure, or legally drive the vehicle.
To avoid these risks, apply for a duplicate title before selling. If the title is truly unobtainable, work with a junk car buyer or scrap yard that handles no-title transactions legally in your state and provides proper documentation.