Buying a Car with a Bonded Title in Texas: Is It Safe?

Are you considering buying a car with a bonded title in Texas and wondering if it’s a safe investment? A bonded title is a special type of title issued when the original is missing or ownership is disputed.

This guide will explain what a bonded title is, the steps to take, and what to watch out for to ensure a secure purchase.

Do You Need a Texas Bonded Title? 

Should I Buy a Car With a Bonded Title?

Buying a car with a bonded title can be safe if you perform thorough due diligence. Ensure the title is legitimate, the car’s history is clear, and all legal requirements are met. Always consult with the Texas Department of Motor Vehicles (TxDMV) for guidance.

Pros of Buying a Car with a Bonded Title

Before making a decision, it’s important to weigh the pros and cons of buying a car with a bonded title. Here’s what you need to know:

Pros of a Bonded Car Title:

• Potential for a good deal:
  Cars with bonded titles may be sold at lower prices, offering potential savings.
• Opportunity to resolve title issues:
  A bonded title provides a legal method to resolve title issues and secure ownership.
• Legal way to establish ownership when the title is lost:
  It allows buyers to legally establish ownership when the original title is missing.

There is no risk to the buyer of a vehicle with a bonded title.

Common Reasons for a Bonded Car Title

Bonded car titles often arise from various situations. Here are some common reasons why a bonded title might be issued:

• Lost or Misplaced Title:
  • Owner cannot find the original title.
• Inherited Vehicle:
  • Title issues arise when inheriting a vehicle without proper documentation.
• Purchased Without Proper Title:
  • Previous owner did not provide a valid title.
• Abandoned Vehicles:
  • Title issues with vehicles that were abandoned and later claimed.
• Clerical Errors:
  • Mistakes in the title transfer process that require a bond to correct.

Tips for Buying a Car with a Bonded Title

Buying a car with a bonded title requires extra caution. Here are some tips to help you navigate the process:

• Do thorough research:
  • Understand the car’s history
• Hire a reputable mechanic:
  • Ensure the car is in good condition
• Verify the title bond:
  • Check the bond amount and validity
• Negotiate the price:
  • Use the bonded title status to get a better deal
• Get a written agreement:
  • Document any promises made by the seller

Steps to Verify a Texas Bonded Title

Verifying a bonded title is crucial to ensure the legitimacy and avoid potential legal or financial issues. Follow these steps to confirm the validity of a Texas bonded title:

1. Check the Vehicle Identification Number (VIN):
   Verify the VIN with the Texas DMV to ensure it matches the vehicle’s records.
2. Request a Vehicle History Report:
   Use services like Carfax or AutoCheck to get a detailed history of the vehicle.
3. Inspect the Bond Document:
   Ensure the bond amount is 1.5 times the vehicle’s value to meet Texas requirements.
4. Confirm the Bond Status with the TxDMV:
   Contact the Texas DMV to confirm the bonded title status and ensure there are no outstanding issues.
5. Verify the Bond with a Surety Company:
   Contact a reliable surety bond company like TMD to confirm the bond’s validity and ensure it covers the necessary requirements.

Ensure a Smooth Purchase with TMD’s Help

Verifying a bonded title is essential for a secure car purchase. TMD can assist you in understanding and confirming bonded titles, ensuring a smooth transaction. Contact TMD today for expert guidance and a consultation. Make your purchase with confidence—reach out to TMD now!

Texas Title Bond FAQs

What is a Bonded Title in Texas?

A bonded title is a certificate of title that includes a surety bond to guarantee ownership. It is issued when the original title is missing or disputed. Learn more about bonded titles.

How Long Does a Bonded Title Last in Texas?

A bonded title in Texas is valid for three years. After this period, if no claims are made, the bond expires, and the title becomes clear.

Can I Sell a Car With a Bonded Title in Texas?

Yes, you can sell a car with a bonded title, but it may be challenging as buyers might be wary of potential ownership disputes.

Can a Bonded Title Become a Clean Title in Texas?

Yes, after the three-year validity period without any claims, a bonded title in Texas becomes a clean title.

Are There Any Extra Fees for Bonded Titles?

Yes, obtaining a bonded title involves additional costs, including the surety bond premium and processing fees.

Can I Get a Loan for a Car With a Bonded Title?

It is possible to get a loan for a car with a bonded title, but it can be more challenging due to potential risks associated with ownership disputes.