When are dealers required to process title transfer for trade-ins?

Dealers are required to process the title transfer for trade-ins during any new vehicle sale involving a trade-in because this ensures that the ownership of the trade-in vehicle is officially documented and transferred to the dealership. This process is crucial for maintaining proper records and for the dealership to legally sell or dispose of the trade-in vehicle.

Processing the title transfer at the time of the sale helps to prevent any potential ownership disputes or liability issues that could arise if the trade-in remains in the previous owner's name. It also aligns with the legal requirements set forth by state regulations regarding the sale and transfer of vehicle titles, ensuring that all transactions are transparent and traceable.