Car dealerships must take proactive steps to secure titles for all vehicles purchased from car auctions before they sell the car. This includes implementing due diligence and researching relevant laws and regulations in order to guarantee compliance with all applicable title requirements. Additionally, car dealerships should prioritize communication between the car auction company and DMV to ensure that car titles are delivered in a timely fashion.
We also recommend you to stay in touch with your customer to let them know the time frames where the title would be delivered to them, with the goal of avoiding misunderstandings.
Without the title, car dealerships assume significant legal liability as they cannot sell or register those specific vehicles. Failing to comply with relevant laws and regulations, as well as not providing the car’s title, can result in costly lawsuits or other legal consequences. The DMV can also choose to suspend or revoke the dealer’s license based on delays in delivering title and/or registration.
