Jurisdiction

• Bonded title procedures are governed by state law. Every state has slightly different procedural details, but the basics are the same in every state. The applicable state law should be your state of residence, and should be available on the website of your state's Department of Motor Vehicles. You will have to provide proof of state residency. A state-issued driver's license or personal ID is ideal for this purpose, but a lease or a recent utility bill may be acceptable.
  
  

Inspection

• You will need to physically inspect the car and report details of your inspection on a form provided by the state government. You must locate the Vehicle Identification Number (VIN), which is engraved somewhere on the interior or the exterior of the car depending on its make and model. Without the VIN, the car is unlikely to be eligible for bonding. You will also have to supply the car's make, model and year. Some states require that a safety inspection be performed by a state-authorized inspector.
  
  

Ownership

• You will have to provide documents supporting your claim to ownership of the car. In most cases a bill of sale with your name on it signed by the previous owner will be sufficient. You will also have to prepare and sign an affidavit stating how you came into possession of the car. If you found the car, you may have to proceed under your state's abandoned vehicle procedures. Abandoned vehicle procedures are complex in some states, and no guarantee exists that you will ever be able to obtain bonded title.
  
  

Bonding

• You will need to submit a bonded title application to state authorities along with the documentation described above. Once your state approves your application, you will need to purchase a surety bond in the amount set by the state government. Surety bonds can be purchased from the state bonded title authority and at most auto insurance agencies. The amount of the bond will probably exceed the book value of the car. In most states, you may obtain a bonded title by submitting proof of purchase of a surety bond and the approval letter to your local county tax office.
  
  

Competing Claims

• Your title certificate will carry a bonded title notation for a statutory period--usually two or three years. If a competing claimant for ownership of the car emerges and legally establishes ownership of the car, you will have to cash in the title bond and use it to compensate the claimant for the value of the car. In that case the title bond will be released, but you will be able to keep the car. Once the bonded title expires or is released, you can apply for a standard title certificate.