How to Start an Auto Title Service

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When a person sells or buys a car, the transfer of the title of the car must be completed in order for the sale to be legally binding. An auto title company helps consumers do this in a quick and efficient manner. Starting an auto title business allows you to work from an office to assist buyers and sellers do this while also making a profit. Though the qualifications to do this type of work vary from state to state, it is not hard to find that information if you know where to go.

Navigate to your state's Department of Motor Vehicles, Department of Driver's Licenses, or similar site. Make sure it is the official state site and not a spam site with a similar name. There you can find the information needed to start an auto title business.

Familiarize yourself with your state's list of qualifications in order to start the business. Most require that you not be convicted of a felony, apply for a business license and be bonded. Some may require a certain amount of education or classes. Make sure that you or at least one of your partners (if any) that you are starting the business with have these qualifications.

Apply for your license or permit to start an auto title business. There are fees associated with this that vary from state to state. Payment in full is usually expected with your application.

Apply for membership in the National Independent Automobile Dealer's Association (NIADA). They have resources available to you that make it easy to locate lost titles, which many people need help with. It also gives you credibility as a new business that you are an honest title business.

Buy or rent a property or office space to open your business in. Some states may allow you to do do this from a home office with some stipulations, but most will require that you have a separate business address.

Hire employees to staff your office. At least one should have previous auto title experience. Once again, this shows credibility on your part as a new business and it also makes it easier to train new people who want to begin working in this industry.

Advertise locally about your business and what it has to offer. This is the best way for a new business to attract customers initially.


Starting an auto title business is very expensive up front. If you don't have enough money on your own, seek out a loan, investors, or business partners to help. In order to do this, you may need a formal business plan drawn up.


If a state requires you to have a certain amount of bonded insurance, you must have proof of this insurance at all times when operating your business. If you skip this or fail to keep up payments on the insurance, you can have your business closed down and may face fines or other penalties.