Car Title - car insurance articles

At some point in our life we want to buy a car, a special one, the one that makes us smile and turn head when we see it in the street. We are dreaming and imagining ourselves driving it , getting compliments on our hot ride.

There are so many things to consider before buying a car. Not only you should check if the car was stolen or wrecked, you need to know the average price of it so you will not overpay, test drive it. Make sure you are not buying a lemon car , etc. But there are some things you just cannot be protected from.

Iíll tell you a story that happened to one of my very good friend. Vivien (name has been changed to protect her privacy) was a transfer student. As a lot of young people like herself, she did not have any relatives to support her financially , so while studying she worked hard to pay for college, apartment she shared with another young lady, and other life necessities . And being smart and serious about the future she even managed to save some money. It was not that easy. She graduated from college and got a pretty descent job.

As one of her goals was achieved , she moved on to the next one, which was more like a dream, - to drive a nice car. Vivien decided, that after all the years of studying good, working hard and saving money, it was time to get herself a beautiful ride. She knew exactly what she wanted. Vivien found the car at a dealer store for a good price, low mileage , excellent condition. After getting a loan, she has signed a check, got a bill of sale, car keys and was happily driving home, joking that she would live and sleep in her car now.

Good car, nice looking dealership, what can possibly go wrong? Months have passed Ö Vivien has paid off her loan. But she has never got the title. The car dealer has simply filed for bankruptcy! As a result Vivien is stuck with a car that she cannot resell or properly own.

How to avoid this or similar situation? Trust nobody! When buying from a dealer or private party transfer car title at the time of sale, or within 20 days after the sale. Of course there are circumstances when a vehicle can be sold without a title, but this is something to avoid or you enter into a deal at your own risk .In Vivienís case the car was owned by the third party - bank. Also, to better protect you, ask dealership for a dealer bond. If dealer fails to pay taxes to DMV and transfer title, you may file a claim against that bond, similar to the way you would file car insurance claim.

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