When purchasing a car at the dealership, transferring the title is usually a simple process. This is because the dealer usually does all the work for you by completing the paperwork. However, when you purchase a car through a private party, the process may be confusing. There are several problems that can occur when a title is not properly transferred. Some of these problems include the following:

  • The new owner may not be able to sell the vehicle because it is not in their name.
  • The previous owner may be held liable for any damage caused by the vehicle because it is still in their name.
  • The new owner may not be able to get auto insurance.

To properly transfer a title, you should contact your local Department of Motor Vehicle (DMV) to find out what is required. Each state is regulated with different rules. Both parties should educate themselves with the knowledge needed to transfer the title.