If you are unable to provide a valid vehicle title or other required documents, you may be required to purchase a surety bond as a form of insurance for the state or other parties in case of any issues or disputes related to the vehicle. The surety bond guarantees that the seller legally owns the vehicle and that you can obtain a valid title.
The bond amount is generally based on the vehicle’s value and varies by state and specific circumstances. For example, the bond amount may be set at a percentage of the vehicle’s value, such as 1.5% to 2% of the appraised value, or a fixed dollar amount.
It’s important to understand that the surety bond is not a substitute for a valid title. You must still provide all required documentation and meet any other requirements to obtain a title. The bond protects in case there are any issues with the title or ownership of the vehicle in the future.
In summary, if you cannot obtain a valid title for a vehicle, you may be required to purchase a surety bond. The bond amount will be based on the value of the vehicle and will provide protection in case there are any title or ownership issues in the future. Be sure to understand the specific requirements in your state to obtain a valid title for your vehicle.