It is not uncommon for questions to come up regarding vehicle registrations and a dealer’s ability to take a vehicle back into inventory. Specifically, some dealers believe that a customer must register a vehicle before the dealer can legally take possession of it. This belief often stems from the assumption that a registration proves a title exists, since registrations are generally not issued unless a title is present.
While this may be an internal policy at some dealerships, it is important to understand that this is not a requirement under New Hampshire law.
New Hampshire is a Title-Only State
In New Hampshire, there is no requirement for a vehicle owner to hold an active registration in order for a vehicle with a title to exist. New Hampshire is a title-only state. A registration is not what creates or validates ownership—the title does.
Dealers should also be aware that the existence of a registration does not guarantee that a title has been successfully issued. There are many situations where a title application is submitted but cannot be processed due to missing or incorrect information. In these cases, a customer may still be operating the vehicle on a valid registration, even though a title has not yet been issued. Once that registration expires, however, it cannot be renewed until the title issue is resolved.
Key Takeaways for Dealers
Dealers are encouraged to review their procedures and ensure staff understand the distinction between titles and registrations. Doing so can prevent confusion, improve customer trust, and reduce avoidable issues down the road.