Should I Buy a Car with a Bonded Title

Should I Buy a Car with a Bonded Title: Here is What You Need to Know


Purchasing a vehicle can be a confusing process with many questions. One essential thing to know before buying a car is the standing of the title. Should I buy a car with a bonded title? Yes, you can still register and buy a car with a bonded title as it is just like any car with a regular car title.

Buying a car that has significant insufficiency in the ownership documentation can be tricky. That is why it is recommended to do it using a bonded title. Vehicle have bonded title probably because somewhere on the way the regular title for this car was lost or damaged at a time between title transfers.

 A title marked “bonded” can actually cause alarms since most people are oblivious of what that mean. Hopefully, we can solve some of those questions for you here. Let us begin!

 Four Reasons why you need a Bonded Title

You purchased a car without receiving a title or a bill of sale

Many people tend to sell or even donate their vehicles without signing any type of contract. In an instance, if you won a super car in Fast and Furious-styled race, you certainly will not request your rival to sign over the title to your name or to sign a gift contract.

Bonded title rules vary from one state to another. For instance for Texas bonded title you require to file:

  • Copy of your photo ID
  • Statement of fact for bonded title
  •  Statement of physical inspection
  • Supporting evidence for your title claim

In case you do not have a bill of sale, a title or a gift contract, it may be a little hard to prove that you are the legal owner of the car. In this case, you could also use a notarized statement, sale receipt or cancelled check that explains how you have acquired your car.

You purchased a car with a bill of sale

This is another reason why you need a bonded title, in order to sign over the tittle rights. You should retain your bill of sale and use it as a supporting evidence for your tittle claim.

You purchased a car and lost the title

In case you lost the title document prior to applying the title in your name, you should use a notarized statement, bill of sale or a receipt for getting a bonded title. In different circumstances, in case you transferred the title in your name before losing it, you don’t have to get a bonded title. You can simply apply a duplicate title certificate (DTC) at any DMV.

You purchased a car and received badly signed title

The last but not the least reason why you need a bonded title is when you buy a car with a title that is not signed properly.

Even if the car seller signed over the title, you need to examine its logic. If your car title badly signed, you will also need to acquire a bonded title. Badly signed titles comprise those that are listed under the wrong name.

Should I buy a car with a bonded title? Since the bonded title is not a red flag, you can buy the vehicle.

Steps in Obtaining Bonded Title 

Meet primary standards

Some states will only provide bonded titles to cars over a definite age and below a certain amount that have no earlier title applications on record. There are also states that do not provide bonded titles at all, but of course, they do have alternative options. Start by affirming you are qualified through the DMV

Show ownership

You need to show ownership of your car with a receipt, bill of sale, or a copy of the check you used to buy it. If you cannot issue these documents, some states accept a notarized explanation of how you ended up owning the car.

Obtain an appraisal

Look into the value of your car using NADA Guide or Kelly Blue book Values. You might also be permitted to rely on a licensed car dealer.

Determine your bond amount

Lost car title bonds normally have to be worth more than the value of the car, often 1.5X or 2X the value. Hence, if your car is worth $ 4,000 you may need a bond for $8,000, but that figure refers to the total the bond will pay, not the real cost of the bond.

Locate a surety company

Find a surety company such as Viking Bond Service that is qualified to provide missing car title bonds in your state. You will be required to fill out an application, indicate the amount you need the bond to cover, and pay a fee based on that amount. In many instances, fees are around $100. 

Finalize the application

This is the final step in obtaining a bonded title. Once you have an active bond, give in evidence along with a completed title application to the DMV. You may also have to pay an administrative fees or application related with acquiring the bonded title.

So, should I buy a car with a bonded title after all?


Buying a car can be hectic sometimes, it require some research before making a final decision. So, should I buy a car with a bonded title after all? Yes, a car title with bonded should not be a cause of alarm, is just like a regular car title. Although there are risks of claims on bonded title but in rare incidents. The good news is the person whose name is on the surety bond is the one supposed to repay any claims, not you.

You need to do a research why a particular car that you are interested in car have bonded title, if the reasons do not coincide with the four reasons that we mentioned above then there is need to be alarmed. Otherwise, feel free to buy a car even if the title is bonded. Thank you for reading.