Arizona Motor Vehicle Title Bond

Get Your Arizona Motor Vehicle Title Bond

Who Is Required to Purchase an Arizona Title Bond?

When you're purchasing a used vehicle it's possible the vehicle title is missing, damaged, or incomplete.

In order to register the vehicle, operate it legally, and even sell it legally, you have to reestablish the chain of ownership by getting a bonded title.

In most cases, missing ownership records result from:

• The original title has been so damaged that it's illegible
• The original title was filled out incorrectly and missing one or multiple owner's names
• The original title has gaps in ownership
• The original title has been lost

It's a straightforward process to have a bonded title issued. The most difficult parts include researching and contacting the previous owners and lien holders. And the most confusing requirement is purchasing a vehicle title bond because surety bonds are a new concept to most people.

 

Why is an Arizona Motor Vehicle Title Bond Required?

As we mentioned at the top, in the case of a title surety bond, a surety bond is a legal contract that acts as financially backed promise that you are not the rightful owner of the vehicle.

The title bond backs the bonded title.

The title bond is protection for:

• A previous owner who still legally owns the vehicle
• Any third party that has a lien against the vehicle

If a past owner or lien holder comes forward with proof that they are the legal owner or they have a legitimate claim on the vehicle, they can make a claim against the title bond for financial compensation.

This is why it's so important to do your due diligence when purchasing a used vehicle without a title. The good news is you will be forced to do a lot of this due diligence in section 3 of the Arizona title bond application.

 

The 5 Steps to Get a Bonded Title In Arizona

Click here to find all the required forms, except for the title bond itself. When you purchase your title bond, we will provide you with the correct form, filled out with the correct information.

 

Step 1: Vehicle Inspection

You're required to have the vehicle inspected by a certified inspector at any auto dealership or have a law enforcement agency inspect the vehicle for you.

During this inspection, they will be attesting to the vehicle VIN to make sure it's legible and has not been tampered with.

 

Step 2: The Applicant Affidavit

During this part of the application process, you're legally attesting to the reason you need to obtain a bonded title.

These reasons include:

• You do not have the original title or the most current title
• The title is not properly signed by a previous owner, dealer, or lien holder
• You build the vehicle (or trailer) and you don't have receipts for essential parts valued over $1,000

There may be another reason you require a bonded title, which you can describe on the application.

 

Step 3: Contact Previous Owner And Lien Holders

 

Vehicle Owner On Record

If there is a current owner on record, you must contact them to obtain the title of the vehicle. This assumes this individual is different from the person you purchased the vehicle from.

In the case where you contact an owner on record, make sure you show proof you contacted them, including returned mail.

 

Lien Holders

If you conduct a lien search and find there are liens on the vehicle, you must contact each lien holder and obtain either:

• A release of lien letter from the lien holder
• Proof the lien holder is out of business

If you can't provide either one of these proof elements, the bonded title process is no a longer valid option and vehicle ownership becomes a legal matter.

Keep in mind the vehicle you're getting titled may not have any liens on it. So while this process can be a pain, there is no guarantee that you will have to go through it.

 

Step 4: Purchase Your Title Surety Bond

Per the Arizona bonded title application, make sure you go through the first 3 steps before you get your title bond.

If vehicle ownership becomes a legal matter, purchasing a title bond will do you no good.

But if you're ready to get your title surety bond, here are the 2 steps.

 

Get The Title Bond Amount

Every vehicle title bond has an amount associated with it. This bond amount is the maximum any one or multiple claims can be against the bond.

You would only receive a claim if:

• A past owner came forward showing proof of vehicle ownership
• A past lien holder came forward showing proof of a valid lien against the vehicle

Again, step 3 should be conducted thoroughly enough to ensure one or both of these scenarios never happen.

Go get the title bond amount you must get the average fair market value of the vehicle in it's current state.

The Arizona Motor Vehicle Division will accept a value from Kelly Blue Book and the NADA guides which is now JD Powerhouse.

The bond amount will be 1.5 multiplied by the vehicle value you get from one of these sources.

For example, let's say Kelly Blue Book tells you the value of your vehicle is $8,000. The title bond amount you need will be $8,000 X 1.5 = $12,000.

$12,000 is not the price, the price will be a small fraction of this amount.

 

Step 3: Purchase the Title Surety Bond

The price of the title bond is based on the bond amount you just calculated.

This price is ultimately determined by a corporate surety (the surety is the insurance company that underwrites title bonds).

Use the table below or the price cards above to determine your price.

 

Why Do Arizona Title Bonds Over $50,000 Require a Quote?

While claims against title bonds are very rare, having a larger bond amount is a greater risk for the surety.

Plus it's statistically more likely for a vehicle with a higher value to be a victim of vehicle theft, slightly increasing the likelihood that there may be a claim. Ultimately this is rare, but every surety requires a soft credit check for any bond amount $50,000 or above.

The rate the surety determines multiplied by the bond amount is the price you pay. Here are some example prices based on a $50,000 bond amount.

Notice how getting a lower rate can drastically lower your cost.

This is why it's so important to work with a specialized surety agency like Surety Bonds Direct to purchase your Arizona title bond.

There is no obligation to purchase the title bond when we price shop for you. So don't feel like you're obligating yourself to purchase, just get your price quote today so you have the price ready to go. All price quotes are good for 30 days.

When you're ready to purchase, it only requires completing a secure online order form, or you can purchase over the phone if you'd prefer.

When you're payment is processed, we'll immediately prepare your title bond with the:

• Correct form for Arizona
• Required signatures and seals
• Power of attorney

You will turn all of this in with your title application. More on this below.

 

How Long Does a Bonded Title in Arizona Last?

Arizona requires a bonded title to be active for 3 years.

This is a "waiting period" for any other potential owners or lien holders to come forward with a claim to the vehicle.

After the 3 year waiting period if over, the title surety bond will automatically expire. You don't have to do anything for that.

You can take the bonded title to your local Motor Vehicle Division and have a standard title issued.

At this point the vehicle is officially yours. If any claim were to come forward after this point, it will immediately be discarded.

 

Step 5: Submit Your Surety Bond Application

Once you have your title bond, the proof that you contacted the previous owner and any lien holder, you can submit your application.

 

Frequently Asked Title Bond Questions

 

Can You Sell Your Vehicle After You Get a Bonded Title?

Yes you can.

A bonded title is just like a standard title in that it reestablishes vehicle ownership. You can sign the bonded title over to a new owner just like you would a standard title.

The new owner will have to keep the bonded title throughout the 3 year waiting period.

It's important to know that if a legitimate claim were to come forward, even though you do not own the vehicle, you are still responsible for the title bond.

 

What Happens If You Move From Arizona

This depends on a case by case basis.

In most cases it will depend on the state you're moving to.

Not every state recognizes bonded titles. So you will have to follow their rules and steps for establishing ownership, if they require additional steps.

If you move to a state that also uses title bonds, you will have to follow their procedures as well.

This might require purchasing a new title bond. It might not and only require a vehicle inspection.

You will get the exact answer when you move to that state.