What does the term "title jumping" refer to in vehicle sales?

Study for the Motor Vehicle Industry License Test. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

The term "title jumping" specifically refers to the practice of transferring ownership of a vehicle without following the necessary legal registration process. This occurs when a vehicle is sold, and the new owner does not register it in their name, often passing the title along to multiple individuals without proper documentation or notifications to the appropriate authorities. This can lead to legal complications, as the vehicle's ownership history becomes murky, and it often bypasses state regulations designed to prevent fraud and ensure proper tax collection.

The other options do not accurately describe title jumping. Transferring a title legally to avoid registration fees does not encapsulate the illegal aspect of title jumping. Upgrading a vehicle's title and obtaining a new title for a salvage vehicle pertain to different processes that involve legal procedures and proper documentation.

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