Can I Sell a Car with a Bonded Title?

Can I Sell a Car with a Bonded Title

Can you sell a car with a bonded title? Yes, you can. If you have a bonded title, you can still sell the car like any other title, including a clear title. A bonded title is issued when the original title is missing or if there’s some uncertainty about the car’s ownership. It might seem like a big deal, but with the right steps, you can sell your car legally, sometimes even within a few hours.

What Is a Bonded Title?

If you misplaced a car title, you can request a new replacement, but there are times when you can’t, such as if you have an open title. This is where a bonded title comes in. It’s a branded title for anyone who cannot get a replacement title certificate.

Can You Sell a Car with a Bonded Title?

You can sell a car with a bonded title, and I will quickly help you to understand how this works.

When you have a car but can’t prove ownership, you can a bonded title. This means you buy a surety bond, and if someone else claims they own the car within 3-5 years, the bonding company has to pay them. But, this seldom happens because it’s too expensive to hire a lawyer and go to court over the car. The bonding company only has to pay if there’s a court judgment.

The cost of the bond depends on how much the car’s value. Once you have the bonded title, it’ll be branded “bonded title” on the paperwork. This does not change the car’s value. Also, when you sell the car, you do it just like you would with any other car.

When Is a Bonded Title Needed?

You will need a bonded title if:

  1. You have a bill of sale but no title for your car.
  2. You did not receive the car’s title.
  3. The car’s title wasn’t signed over to you or transferred correctly.

What is the Difference Between a Bonded Title and a Regular Title?

A bonded title works kind of like a regular title but has a bonded label on it. It’s also called a Certificate of Title Surety Bond or Lost Title Bond.

You typically get a bonded title from the DMV if you lose your vehicle’s title. You need legal reasons to avoid any future problems. Bonded titles are valid for 3 years. So, if someone shows up in the future to claim the vehicle with a valid title, they can be compensated. This situation is rare, and even if you sell a car with a bonded title, it transfers to the new owner in the same way.

How to Sell a Car with a Bonded Title

Usually, you can sell a car with a bonded title just like you would sell a clear title car. It is even easier to sell a car that carries a title with a surety bond compared to one with a salvage title.

While you can legally sell the car, you should check with your local Department of Motor Vehicles or equivalent agency.

Disclose the Bonded Title

When selling a car with a bonded title, you have to disclose this information to a potential buyer. A bonded title shows that the original title is missing or there is some question about the ownership of the vehicle. While some buyers may be hesitant to purchase the car, others would not mind.

Provide the Necessary Documents

Make sure to provide the buyer with all necessary paperwork, including the bonded title and any other documents required by your state.

Complete the Sale

Follow all your state requirements, including transferring the title to the new owner and notifying the DMV of the sale.

How to Get a Bonded Title for a Car

It usually does not take long to get and sell a car with a bonded title. Just go to the DMV. Visit in person and explain why you do not have the original title. The DMV representatives will then tell you when you’ll get the title bond.

On average, it takes 2 to 4 weeks, but sometimes only 1 week if there’s not much for the DMV to check. Make sure you have the right paperwork, including the vehicle’s purchase insurance and bill of sale.

In simple terms, getting a bonded title depends on you working together with the DMV. It also depends on how much information you provide them. The vehicle inspection and paperwork won’t take long. Once the DMV figures out the vehicle’s value for the bond, you’re all set.


Fortunately, you can sell a car with a bonded title but you must not fail to disclose it to the buyer. A bonded title itself is legal and shows that you’re following the rules to prove ownership of the vehicle.

The process of obtaining a title bond is usually not tough, and your local DMV handles most of it. As the current owner, you just need to give all the information to the DMV and get the title bond in a few weeks.

Read alsoCan You Sell a Car with a Duplicate Title?

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