How to Get a Bonded Title in New Mexico?

At Surety Bonds Agent, we offer a full range of surety bonds nationwide through an extended carrier network. Continue below to learn more about New Mexico’s bonded titles. If you have additional questions or want to explore bonding solutions for your business, speak with one of our knowledgeable surety bond experts.

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What Is a Bonded Title?

A New Mexico bonded title enables New Mexico residents who lack a standard certificate of title for a vehicle in their possession to do the same things that can be done with a standard title: insure the vehicle, register it, or sell it. Except for bearing the “BONDED” brand, a bonded title looks just like a standard title. 

Who Needs Them?

The most common reasons for needing a bonded title are:

  • The seller never provided one.
  • The seller provided a title that is invalid (e.g., improperly assigned, damaged, illegible, etc.).
  • The seller provided a title that was lost or stolen before the buyer could register the vehicle in their name.

What Are the Steps in the Bonded Titling Process?

The New Mexico Division of Motor Vehicles issues bonded titles only as a last resort. Explain your situation to your local MVD office to find out whether you can obtain a bonded title. If you can, you’ll need to purchase a three-year New Mexico title bond in an amount that is twice the vehicle’s current value according to the National Automobile Dealers Association (NADA).

If you purchased the vehicle in a state other than New Mexico, a certified VIN inspector must inspect it at an MVD location.

Finally, complete the application for a New Mexico bonded title and submit it with the bond certificate and other supporting documents, including a bill of sale or any other proof of your ownership of the vehicle, to MVD.

Why is a Title Bond Required?

In purchasing a title bond, you guarantee you are the vehicle’s rightful owner. It provides a way to compensate anyone who, within the three-year term of the bond, can prove you should not have been issued a bonded title and can document a financial loss because you were. That person could be a previously titled owner, a lienholder, or someone you sold the vehicle to.

If no claims are filed by the time the bond expires in three years, you can apply for a standard certificate of title.

How Do They Work?

Purchasing a New Mexico title bond legally obligates you, as the bond’s “principal,” to pay all legitimate claims against the bond. However, the bond’s guarantor, known as the “surety” has guaranteed that you will pay claims, and will pay the claim initially, on your behalf. But you can’t evade the responsibility for claims, so you must subsequently reimburse the surety. If you don’t, the surety can take you to court to recover the claim amount.

What Do They Cost?

New Mexico title bonds up to $25,000 are sold for a small fee based on the bond amount. Bonds for $25,000 or more go through underwriting to establish the premium rate. That premium rate is based largely on the principal’s personal credit score as a measure of the risk to the surety.

A high credit score suggests a low risk, of the surety not being reimbursed for claims paid on the principal’s behalf, which results in a premium rate in the range of two to four percent. Someone with a lower credit score poses a higher risk to the surety and will pay a higher premium rate. 

At Surety Bonds Agent, we offer a full range of surety bonds nationwide through an extended carrier network. Continue below to learn more about New Mexico’s bonded titles. If you have additional questions or want to explore bonding solutions for your business, speak with one of our knowledgeable surety bond experts.

CONTACT US FOR A

FREE BONDED TITLE QUOTE

What Are Bonded Titles?

A New Mexico bonded title enables New Mexico residents who lack a standard certificate of title for a vehicle in their possession to do the same things that can be done with a standard title: insure the vehicle, register it, or sell it. Except for bearing the “BONDED” brand, a bonded title looks just like a standard title. 

The most common reasons for needing a bonded title are:

  • The seller never provided one.
  • The seller provided a title that is invalid (e.g., improperly assigned, damaged, illegible, etc.).
  • The seller provided a title that was lost or stolen before the buyer could register the vehicle in their name.

The New Mexico Division of Motor Vehicles issues bonded titles only as a last resort. Explain your situation to your local MVD office to find out whether you can obtain a bonded title. If you can, you’ll need to purchase a three-year New Mexico title bond in an amount that is twice the vehicle’s current value according to the National Automobile Dealers Association (NADA).

If you purchased the vehicle in a state other than New Mexico, a certified VIN inspector must inspect it at an MVD location.

Finally, complete the application for a New Mexico bonded title and submit it with the bond certificate and other supporting documents, including a bill of sale or any other proof of your ownership of the vehicle, to MVD.

In purchasing a title bond, you guarantee you are the vehicle’s rightful owner. It provides a way to compensate anyone who, within the three-year term of the bond, can prove you should not have been issued a bonded title and can document a financial loss because you were. That person could be a previously titled owner, a lienholder, or someone you sold the vehicle to.

If no claims are filed by the time the bond expires in three years, you can apply for a standard certificate of title.

Purchasing a New Mexico title bond legally obligates you, as the bond’s “principal,” to pay all legitimate claims against the bond. However, the bond’s guarantor, known as the “surety” has guaranteed that you will pay claims, and will pay the claim initially, on your behalf. But you can’t evade the responsibility for claims, so you must subsequently reimburse the surety. If you don’t, the surety can take you to court to recover the claim amount.

New Mexico title bonds up to $25,000 are sold for a small fee based on the bond amount. Bonds for $25,000 or more go through underwriting to establish the premium rate. That premium rate is based largely on the principal’s personal credit score as a measure of the risk to the surety.

A high credit score suggests a low risk, of the surety not being reimbursed for claims paid on the principal’s behalf, which results in a premium rate in the range of two to four percent. Someone with a lower credit score poses a higher risk to the surety and will pay a higher premium rate. 

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Request a quote online or call today to speak with one of our surety bond agents about getting you a good rate on the bonded title you need to do business in your state.