Michigan doesn't have a sold vehicle reporting process?

[XDCX]

I bought a vehicle in Michigan via a Proxibid auction where the vehicle was a Court Ordered Forfeiture. Since the vehicle didn't have a title, it just had court papers, I had to title the vehicle in Michigan before I could title the vehicle in Arizona.

I decided not to keep the vehicle and sold it as soon as I received the Michigan title in my name. I've been looking for a way to report the sale to the State of Michigan so the title will no longer be in my name but it doesn't appear that Michigan has a sold vehicle reporting process.

The instructions on the title suggest that the seller accompany the buyer to the Secretary of State office (Michigan's version of a DMV) or retain a copy of the Bill of Sale for 18 months.

To be clear, it's not a huge deal I'm just surprised that in today's Internet age there's a state that doesn't allow their citizens the opportunity to report that they've sold a vehicle that was titled in their name. (Both Washington and Arizona have DMV websites that allow sellers to report the sale of a vehicle - I'm guessing that almost all states do?)

[tnpartsguy]

I got a letter many years ago that I owed a huge towing and storage bill for a car that I had sold 2 years previously. Luckily, I the guy that bought it fill out a bill of sale, and had it notarized. The car had broken down on him, and he abandoned it about a year after he bought in on the side of I-40 in Nashville. I took my bill of sale, and they told me it also had a stolen tag on it.....

At least I was in the clear.

[XDCX]

Originally Posted by tnpartsguy

I got a letter many years ago that I owed a huge towing and storage bill for a car that I had sold 2 years previously. Luckily, I the guy that bought it fill out a bill of sale, and had it notarized. The car had broken down on him, and he abandoned it about a year after he bought in on the side of I-40 in Nashville. I took my bill of sale, and they told me it also had a stolen tag on it.....

At least I was in the clear.

That's exactly why I like to have the ability to report a vehicle as being sold directly to the DMV.

In Washington State it's a requirement that the seller contact the DMV to report the sale of a titled vehicle. (Washington charges sales tax on all vehicle transfers - regardless of whether it's a Dealer or Private Party transaction. That's likely why they want to know when a vehicle's been sold so they know they have sales tax due.)

[mryan55]

I grew up in Michigan (and still do some business with Michigan clients) -- and Michigan doesn't have any slip or portion of the title to tear off and send in when a sale is complete. Basically -- keep a copy of the title if you are unable to accompany buyer to a Secretary of State Office.

My parents keep their vehicles until they are only worth scrap, and each time they scrap one of their old ChryCo products they reassign the title and keep a copy of the front and back. Here's guidance from the Secretary of State:

http://www.michigan.gov/sos/0,4670,7...5461--,00.html

[mryan55]

Also, I just thought about this for those of you who don't deal with Michigan very often. Michigan accepts an electronic Manufacturer's Certification of Origin, so many Michigan dealers do not have paper copies of the MCO... this can make it a bear to dealer trade with Michigan dealers for those of us in the Midwest.

Many Michigan dealerships do order the MCO, but for those that don't it can be a pain in the butt to make sure we actually get it in the necessary time frame!

[XDCX]

Originally Posted by mryan55

I grew up in Michigan (and still do some business with Michigan clients) -- and Michigan doesn't have any slip or portion of the title to tear off and send in when a sale is complete. Basically -- keep a copy of the title if you are unable to accompany buyer to a Secretary of State Office.

My parents keep their vehicles until they are only worth scrap, and each time they scrap one of their old ChryCo products they reassign the title and keep a copy of the front and back. Here's guidance from the Secretary of State:

http://www.michigan.gov/sos/0,4670,7...5461--,00.html

I wonder how many other states are like Michigan in regards to not allowing sellers to report a vehicle as being sold?

In my case since the truck I titled in Michigan was ultimately sold in Arizona I'm betting that VIN will be in my name in Michigan until it simply ages off of their system. It's not a huge deal but I still think it's odd.

On a semi-related note, I remember a Lemon Law case (I think it was in Hawaii) where the customer was perturbed that it was taking so long to get the vehicle out of her name after she won her case. She wasn't worried so much about the bank getting their pay-off, she was mostly concerned that she couldn't qualify for a higher level of social assistance if she was still listed on the State's DMV system as a vehicle owner.