Buying an imported JDM car without a title might seem the best option, especially if you want to save money on your dream JDM car. However, in reality, buying a JDM car without a title is more expensive than buying one with a ready title in the long run.

Table Of Contents
show

The cons of buying a JDM car without a title outweigh the fact that you can save some money, which rarely happens. As stated earlier, the overall cost of purchasing and titling a JDM car without a title is more expensive than buying one with a clean and ready title. So, where do these other costs come from?

High costs revolve around getting the car inspected, processing fees, and tracking down previous owners if the vehicle has been owned locally. Sometimes it’s possible to buy a JDM car without a title and get it titled. But with time, the authorities catch up with you and revoke the title like in Florida earlier this year. (Read; 400 JDM Cars, imported to the USA, Lose their Titles).  

Why Are Imported JDM Cars Sold Without Titles?

toyota soarer

Illegally Imported JDM Cars

In the United States, driving any car under 25 years old from the date of production is illegal. The same applies to Canada but with less strict import laws that cap the maximum age limit at 15 years. These laws were enacted to protect consumers, as most JDM cars didn’t pass safety tests. Lawmakers also introduced the import age limit to protect domestic vehicle manufacturers from losses as a considerable percentage of consumers preferred “grey imports” over locally manufactured vehicles.

Some cars are exempted from import rules, for example, show cars imported as show cars and some that were imported during the time of production. For example, the Nissan Skyline R34 GT-R is illegal to import to the United States until 2024. However, you can import one as a show car until it is legal to drive in 2024, provided it qualifies under the show and display rule.

Some R34 GT-R units were legally imported to the United States at the time of production by either individuals or import companies. For example, a company called Motorex imported 16 Skyline R34 GT-Rs. Some titles were revoked, among other company dramas, to what came to be known as the Motorex Skyline Scandal. 5 ended up getting stolen, and Motorex ended up being shut down.

Today, porous borders and fraudulent importers and customs agents are some of the reasons why illegal JDM cars are on the United States and Canadian soil. Such autos never get titled and are hidden away, waiting for customers to buy them. Some are hidden until the year that they become legal to drive.

But it isn’t easy to obtain titles for such cars, and they are sold to buyers at prices below market values to compensate for the titling process. Shipping documents get forged, which is one of the reasons you should avoid imported JDM cars without a title.

Floating Title

To avoid paying taxes on imported JDM cars, some importers sell cars without titles, commonly known as title jumping or floating a title. When you buy an imported JDM car without a title from someone, they have never registered the car in their name, which is illegal in most states.

Most states require importers to have an import license to operate an import business, whether as an individual or business cooperation. This means paying for permits, renting a business space, and annual/monthly operating fees, among other costs.

Thus, some importers avoid such costs by operating hidden under the law’s radar and trying to sell imported JDM cars immediately after they get to the port at slightly lower prices. Titling an imported JDM car can be costly and a pain in the neck, mainly due to multiple inspections and the time taken.

It would help if you were indicated as the importer to title an imported JDM car with minor complications. However, this does not work 100% and will not work in most states. It might be possible to get an imported JDM car titled, but it comes down to how effective the DMV in your state is.

The Title Might Be Misplaced

Just like any other document, losing a car title is normal. However, some sellers will lie that the title got lost and try to convince you to buy a JDM car without a title. They will either lower the price below market value or give fake assurances that they have applied for a new title, and the transfer will begin soon after they get a new title.

It’s advisable not to pay any amount if the title is absent, but if you must, it has to be documented in writing and proved by a stamp from a legal office. But this is only tabulatable if the seller provides valid evidence of ownership and has begun acquiring a new title from the DMV.

If the seller has requested a new title, they are issued a duplicate title form if a title is lost or damaged. You can either wait for the owner to get the title and transfer it to you or get the duplicate title signed over. And when the title comes out, you can do the title transfer yourself.

In some states, buying a car with a missing title and getting a new title in your name is possible. However, it’s a long process that requires you to appear in court and have a judge award ownership of the car provided that it’s legal in the United States or Canada, has no history of wreckage, and doesn’t have a revoked title. If you don’t trust the seller or the car has no title history, obtaining a car title with a car order is the only way you get full ownership.

The Car Might Be Stolen

JDM car theft is rampant in the United States and Canada; thus, requesting a title when buying one is paramount, even before taking the car out for a test drive. The absence of a title when purchasing an “imported JDM car” should be a red flag, especially with units that have been legal to import for a while.

For example, when buying a JDM car manufactured in 1993 and imported in 2018 doesn’t have a title, there’s a chance it has a history of theft. A VIN check could prove whether or not the car has a theft history, while some sellers go to the extent of changing the VIN, making it impossible to determine so.

If the seller can’t produce a title or a duplicate title for a JDM car you plan on buying, it’s better to back off from that deal. Some untitled JDM vehicles for sale are labeled as “freshly imported” and have an enticing price you can’t ignore. It’s better to miss such “deals,” and you’re better off spending more on a titled car. When a deal is too good, think twice.

The Title Might Be Revoked or Suspended

For several reasons, some JDM car owners run into trouble with the law and get their titles revoked or suspended. To avoid fines, they then price their vehicles at below market value when selling, which attracts customers, and since the title is suspended, it’s not included in the sale. Some of the reasons you’ll get are that the title got lost or it’s still getting processed, and if it takes longer, they are willing to get a duplicate title once you buy the car.

Why an Imported JDM Car Title Might Be Revoked or Suspended

JDM car titles have been revoked for several reasons, especially in states with strict laws, such as California and New York. Some are revoked due to owners’ fault, and at times the seller could be at fault, like what happened in California earlier this year, where almost 400 imported JDM car titles were revoked. Laws are different in all states, but here are some reasons why a JDM car title might be revoked or suspended.  

Incorrect Titling Details

Rarely does this happen, but authorities in some states will suspend a title if it has the wrong details. Something as minimal as an unreadable number on the VIN or an additional letter in your name will raise concerns. Correcting such issues by yourself deems the title void, leading to the suspension. Incorrect titling details can be fixed if you apply for a new title with the correct information.

When a Car Has a Fraudulently Obtained Title

Title fraud, also known as title washing, has been there for a while, especially with newly imported JDM cars. There are a couple of ways that a car title can be fraudulently obtained. The first is altering to hide the car’s history, especially if it’s a stolen car or has had extensive damage and been repaired. Printing a fake title after changing the VIN to hide the vehicle’s history is also common.

If There Is a History of Undocumented Wreckage on the Car

If a car has been salvaged, it has to be displayed on the title. However, some sellers hide such history when selling JDM vehicles to avoid losses since they can’t sell at market value. They label the car as a freshly imported JDM vehicle when listing it up for sale. Once it’s discovered that the car has been rebuilt during an inspection at the DMV, the title is automatically revoked.

The second title shows that the car has been rebuilt from previous damage, which some sellers omit.

There are other reasons a JDM car title can be revoked and suspended, depending on the state, for example, driving a car with different plates from the one issued, failing to pay annual road fees, and driving a vehicle with a suspended registration.

Such can be cleared by paying a fee to the DMV, which clears the car, after which only you can buy it. You can also bargain with the seller to lower the price or wait until they clear the pending issues to complete the sale and transfer the title. In some states, owning a car with pending fines is not a walk in the park.

What Happens When an Imported JDM Car Title Is Revoked?

Nissan Skyline

So, you bought an imported JDM car without a title and managed to get a title for it. But after some time, the title gets revoked, and you don’t have contacts of the seller who initially sold the car to you. What other options before the state tows your car for crushing? The following are common options if you get your car title revoked. Some might work or fail, depending on the state.

Shipping the Car to Another State

This is one of the to-go-to options for any imported JDM car owner once the title gets revoked, but it has a higher chance of working depending on how lenient laws in a particular state are. To avoid losses, the car is sold to another state. But only after the value of the vehicle without a title has been determined. Apart from that, the owner selling has to prove ownership of the vehicle and produce all related documents to the new owner, and a notarized bill of sale has to be filled out during the sale.

Keeping the Car as a Show Car or Track Car

In some states, the authorities will allow you to keep the car under stringent conditions. For a car to be considered a show car, it must be a rare spec, such as a Nissan Skyline R34 M-Spec Nur or a Toyota 2000 GT. In such cases, owners can keep such cars but not be driven on the road under the show and display rule. Some states require a car to be considered a show-and-display car and allow up to 2500 miles of driving on public roads.

If a JDM car does not qualify as a show and display car, it can be kept as a track-only car for drifting, track racing, or drag racing and never driven on public roads. If driven on public roads, the owners risk losing their cars and getting crushed.

Surrendering the Car to Authorities

This is usually the last option if you don’t want the feds knocking on your door with a tow truck in the background or getting pulled over and walking home after your car gets towed. Surrendering your vehicle to the authorities has two endings to it. It can either be sold at an auction or crushed, which is the worst thing that can happen to any JDM car owner. 

Conclusion

Buying an imported JDM car without a title is never a good option, as it might seem like a deal to save some cash. Depending on your state, you might get to title the vehicle; in some, it’s almost impossible due to the laws set.  Some states allow you to use the car without a title, issue a temporary registration or a bonded title, and only grant ownership after years if no parties claim ownership of the vehicle. In other states, a resident or the importing party must title the car before it sells. Before buying an imported JDM car without a title, check your state’s laws to avoid being on the wrong side. 

Related Posts