The purpose of a bonded title of a car is to prove a person's ownership of a motor vehicle. It can replace the standard vehicle title when buying insurance, selling a car or registering a vehicle with the Department of Motor Vehicles.
A car owner obtains a bonded title by filing with the DMV. To determine eligibility for a bonded title, a person must be a resident or military personnel stationed in a particular state. The vehicle must be in his possession and must be complete. Two forms that a person needs to complete are the motor vehicle information and the statement of facts. The car owner then contacts a surety bonding company to get a surety bond. The amount of a surety bond is included in the letter obtained from a vehicle titles and registration office. In California, a vehicle valued at $4,999 or less requires a statement of facts. Vehicles valued at $5,000 or more require a different form.
Some states require payment of taxes before a person obtains a bonded title. A person must have proof of insurance and a completed Form VTR 130-U to receive a bonded title. The laws pertaining bonded titles vary from one state to another.