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Is Your Small Business in Need of Bonded Titles?

Joyce Morse

October 07, 2014

Small businesses often purchase vehicles for business use by the owner or employees.

While some companies work with dealers and buy an entire fleet, small organizations may look for less expensive options such as purchasing from an individual. While it can save them money, they also run the risk of getting an incorrect title.

Don't worry if this should happen to you.

It is easy to get a bonded title to replace the one given by a seller to prove ownership of the vehicle that you purchased. This is not the only instance when you might need a bonded title though.

As the following article shows, there are actually at least “4 Reasons you might need a bonded title” for your business.

1.  You never received the title

If you bought a company or inherited it from a family member, you may also have received the company vehicle.

If the previous owner was not very organized or had owned the vehicle for a long time, he or she may not have had a title. If it was included as part of the purchase of the business, you may not have even thought to ask about it.

Now you have a vehicle but no proof of ownership.

If you have proof of purchase such as a bill of sale, you can present that to receive a bonded title.

2. You have no bill of sale or title

If the vehicle is not listed specifically as part of the purchase of a business, you may need a notarized statement showing that you own it to receive a title.

The former owner would agree to sign the statement so that you could present it to receive the title and be able to license and insure the vehicle.

3. The title is incorrect

A title that was filled out incorrectly is another reason you would need a bonded title.

The seller may have accidentally signed as the buyer or they may not have updated the title when they purchased the vehicle from someone else.

You could take that title and receipt from the purchase and get a bonded title.

4. You lost the title

If you received the title for a vehicle you purchased for your business but lost it, you will need to apply for a bonded title to show the vehicle as belonging to you.

To receive a bonded title, you must go to an agency that sells title bonds and purchase one.

Once you have the bond, you can then go to the Department of Motor Vehicles within your state and apply for the bonded title. You have a limited amount of time - only 30 days from the time of bond purchase.

Buying a car for your small business from an individual can be a smart move to help you save money, but it is not without its hazards.

However, with a bonded title, you can prove ownership and license and insure your new vehicle and even sell it in the future even if the original title was never received or was lost.

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