Buying a Truck without a title in Texas

[dwcsr]

I just wanted to relay some information I just got about buying untitled trucks in Texas. This is only for trucks purchased in Texas and did not have a tile from somewhere else and do not show up in the system.

If you purchase a truck that is not in the Texas registration system the following can apply:

You need to get an appraisal of the vehicle prior to titling otherwise you can be charged sale tax on Blue Book value. You will then need to get a bonded title which is a percentage of blue book value. While this sounds simple and easy here's the example I just went through trying to sell a 49 3600 fresh off the farm for $2200.

The buyer called a title company (his friend) and ran the vin, It came back as not in the system, He was told that the high for the blue book was $29K, mid was $10k and low was $4200. He was told that DMV or the tax office would pick the middle number if he did not have an appraisal for actual purchase price and value plus he needed a $1500 bond on the title.

So a $2200 truck before it is even running would have cost him
$2200 for the truck
$262 Taxes
$1500 Bond, I think it’s a percent of the NADA value
$3962 total, before he turned a wrench on it and without the appraisal cost. I suspect that would be about $100-$200.

This has just been changed in the last year or so. Prior to that it was much simpler and bill of sale for actual cost was used and the bond was cheaper.
The problem is all these cars and trucks that didn't get titled prior to you dumping in 15 to 20K will get taxed at the high or mid value mark or current appraisal price of whatever you own , 63 Corvette, 69 Camaro , ouch, plus the percentage bond, ouch again.

Take detailed pictures of your vehicle that you buy as supporting evidence of the purchase price, keep all the receipts for parts and services purchased and also if you buy used parts get a bill of sale for them from the seller noting casting numbers or vin/serial numbers. Get an appraisal and title prior to doing any work on it.
It just confirms what I have always said. If it doesn't have a title it’s a parts truck.

This all started from these west coast high dollar car builders selling the vehicle to the customer at the unrestored price and the billing seperately for the resto work for which there is no tax on the labor part of it. You and I know the vast majority of the cost is in the labor. Once California investigated Coddington and the like the other states followed.

http://www.hotrodsandclassics.net/Temp/HandsUp.htm is a good article on it.