Wow, what a great deal!

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Depends on your state's Dept of Motor Vehicles policy. Here in Louisiana, you could apply for a lost title and see where it goes from there. Could turn up as stolen, could be legit. Worth a call to the seller and to check it out.

 
He does say you can run it through the local DOT and offers to have it titled - for a fee.

 
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It is pretty easy to get a Salvage title here in NH, perhaps it is harder for the seller to get a Salvage title and that is what jacks up the price.

 
So he's willing to discount it $1,700 for not having title. Why in the hell wouldn't he just go get the title then and sell it for FMV? Does he figure it's going to be $1700 worth of hassle to get title?

 
For the price that the bike is being offered vs the number of miles, it is my guess that it is a rebuilt salvage bike. Ya, it could take that much to get a salvage bike through the title process. Not necessarily because of the title directly, but what would need to be done to the bike and documentation to get it title worthy.

 
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What could go wrong?

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