What does the term “title jumping” refer to in dealership operations?

The term “title jumping” in dealership operations specifically refers to the act of selling a car without properly transferring the title to the buyer as a means of evading taxes or avoiding certain legal responsibilities associated with the sale. This practice can arise when a dealer sells a vehicle and skips the necessary steps of ensuring that the title is officially transferred to the new owner, which can help them bypass applicable taxes or fees that would normally be incurred during the transaction. It is important to recognize that this activity is illegal and can lead to significant penalties for dealerships if discovered. The proper procedure for car sales involves an official transfer of the title to maintain transparency and legality within the automotive sales industry.