Must a dealer take in the title in their own name before selling a car to a retail customer?

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The correct response indicates that it is not necessary for a dealer to take the title in their own name before selling a car to a retail customer. Dealers typically act as intermediaries in vehicle transactions and can facilitate the sale without needing to formally hold the title. This practice allows them to streamline the sales process and make transactions more efficient for both the customer and the dealer.

In many jurisdictions, the dealer can sell a vehicle from their inventory directly to the consumer, transferring the title directly from the previous owner or manufacturer to the retail customer. This process can include handling the necessary paperwork and title transfer in one step, ensuring that the buyer receives clear title without requiring the dealer to have the title under their name.

It’s also worth noting that in cases where financing is involved, the title often stays with the financing institution until the loan is paid off, further supporting the idea that the dealer doesn’t need to possess the title themselves in the standard retail sale process.

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