Published: 13 August 2024

Understanding Your Legal Rights on Vehicle Registration

What are your legal rights and a car dealer’s obligations concerning a used vehicle’s registration? Understanding the implications of purchasing a car without valid registration is crucial for every buyer.

Consider the case of a buyer, “Joe,” who purchased a 3-year-old Toyota 4Runner for his nephew, “Abe.” The vehicle was intended for use in a local chauffeur service. However, upon purchase, Joe encountered significant issues regarding the vehicle’s registration.

Joe explained, “I bought the car from one of the largest Toyota dealers in our town in February. They informed us that the vehicle was a trade-in but claimed the previous owner couldn’t locate the registration. They assured us that they would handle obtaining a replacement from the DMV.”

The Reality of Temporary Registrations

Joe and Abe received a temporary registration, affixed to the inside of the windshield, while they awaited the official paperwork. However, the car had no license plates, as those were transferred to the previous owner’s new vehicle.

Abe began working immediately, earning well through his chauffeur role. His employer had contracts with local country clubs, providing him with a sufficient income.

However, temporary registrations are exactly that—temporary. Regulations regarding the validity of such registrations differ by state. Generally, buyers can legally drive a vehicle for a limited period while awaiting proper registration documents. Joe financed the vehicle through his credit union, which required full-coverage insurance listing the credit union as a lienholder.

Consequences of Invalid Registration

Ultimately, the absence of valid registration has serious implications, including:

• Potential tickets from law enforcement since unregistered vehicles may not be legally driven on public roads.
• Risks of parking violations and the possibility of towing or impounding the vehicle.
• Fines that can range from $250 to $3,000 or more, depending on state regulations.
• Severe penalties including arrest, incarceration, points on the driver’s license, and possible suspension of driving privileges.
• Possible lapsed insurance coverage if the car was insured under a temporary registration, leading to driving violations.

Waiting for Resolution

In Joe and Abe’s state, the temporary registration is only valid for 90 days. Abe noted that he had been driving the 4Runner since February, but he recently received grim notices from his employer and his insurance company warning that unless the vehicle was registered in his name, both his employment and coverage would be at risk.

Taking Action

While sending them to the local DMV might seem like an option, it would consume time, jeopardizing Abe’s job. To expedite a solution, I arranged a conference call with Joe, Abe, and the dealership to address the issue with the general manager directly.

Upon explaining their predicament, the general manager quickly acknowledged the situation and requested that they bring the car in for an immediate resolution, including processing a refund for their payments.

What to Do If You Face Similar Issues

If you find yourself struggling to obtain proper paperwork for a vehicle purchase, consider the following steps:

• Contact your lender if the vehicle is financed and ask them to assist.
• Reach out to your state DMV for support.
• Search for DMV or Lemon Law attorneys in your area who may offer assistance.
• Consult a lawyer for guidance.

Understanding your rights when it comes to vehicle registration is essential. By familiarizing yourself with the potential legal avenues available, you can navigate this process more effectively.