According to WRAL here, some used car dealers are selling
cars and not delivering the title leaving the new ?owner? with a car that
he does not legally own.
The reasons vary, but according to DMV Commissioner Mike
Robertson, some has to with “out-of-trust” situations in which
dealers borrow money for vehicle inventory on a vehicle-by-vehicle basis. The
dealers, however, do not repay the lender, meaning they never receive the
title.
Some legislators, the auto dealers association and consumer
groups want to increase the bond for dealers from $50,000 to $100,000. Sounds
like a ?Baptist and Bootleggers? solution. Increase the bond and little mom and pop used car dealers go
out of business reducing competition and increasing prices.
The law already states that the title must be at the place
of business. How about posting a
sign to remind buyers that they should not leave with the car without the title
signed over to them. That is what happens with most private party car
purchases.
