When must a dealer secure a title in the name of the dealership?

A dealer must secure a title in the name of the dealership when all the reassignments on the supplemental reassignment form have been used. This is important because the reassignment form allows dealers to transfer ownership of vehicles to new buyers, but there is a limit to how many times a title can be reassigned before it must be retitled in the dealership’s name. Retitling the vehicle in the dealership’s name ensures that there is a clear ownership record and allows the dealer to maintain compliance with state regulations regarding vehicle sales.

Retitling also helps streamline the process for future sales, as the dealership will be able to directly transfer a clean title to a buyer without further complications. In this context, it is essential for dealer operations to understand when and why titles need to be secured to uphold proper title transfers and comply with legal requirements in vehicle sales.