Car Titles and Blue Light Auctions: Solutions for Lost Titles and Missing Titles?

Blue light auctions are on the rise—but what are they? Also known as a “Title Attached (Delay),” “Title Absent,” or “Title Unavailable” sale, a blue light auction happens when the legal title is not physically present. The title still needs to be produced, usually within 10-30 days after the sale, so buyers need to be prepared to wait for that documentation. There are several platforms that facilitate blue light auctions, including Copart and IAA. Additionally, there are several different reasons why a vehicle may not have the title at the time of the auction, including administrative delays or a pending lien release.

How do Blue Light Auctions Work with a Missing Title?
Blue light auctions can be held in person or online. When a seller lists a vehicle, the auctioneer will designate the blue light status if that title is not produced upon registration for the auction. The auction site will also list key details about the vehicle’s condition, age, damage, and so on.

When bidders register for the auction, they can review condition reports, photos, and any announcements being made by the auctioneers. The winning bidder takes possession of the vehicle immediately. Without that vehicle title, the buyer will not be able to register, repair, or sell it. Auction companies are responsible for ensuring that the title is obtained and sent to the buyer; if this cannot be completed within a reasonable timeframe (usually 30 days), then the buyer has the option to return the car or arbitrate the dispute.

Benefits to Blue Light Vehicle Auctions for Lost Car Title
There are several advantages to buying a car through a blue light auction. First, these auctions are a great way to obtain vehicles at a very low price point. And not every blue light auction vehicle has major defects, further highlighting the benefits to buying through an auction.

Second, for sellers, these auctions provide an option to dispose of vehicles when they are having trouble obtaining a replacement for a lost car title. If the title is tied up in the administrative process but the seller needs to move the car quickly, this is a way to essentially buy some extra time to resolve the missing title issue.

Finally, buyers can also benefit from the quick timeframes that come with auto auctions. Though the auction company is a middle man in the buying and selling process, it greatly speeds up the process on both sides of the transaction. Auctions have created a secondary market for used cars, and the steps the auction companies take to disclose all known issues and vehicle history further create transparency in the marketplace.

What to Watch Out for: Missing Titles and Lost Titles
Pursuing a blue light auction is not without its risks. The biggest issue buyers run into is that the title may be delayed—or even impossible to obtain. Though the auction company has a system in place to navigate the title acquisition process, it can still be a hassle when the vehicle’s title is not produced by the seller within the stated timeframe.

Buyers can arbitrate the title issue, which begins with filing a claim as soon as the seller’s window closes. Ultimately, if the title cannot be obtained, the seller can return the vehicle and essentially undo the sale, getting a full refund (minus any fees that may be assessed by the auction company). Though this is a safeguard, the buyer is still left with no vehicle.

How a Court-Ordered Title Can Help with Missing Car Titles
A court-ordered title can provide a solution. Buyers can file a petition with the county court to clear the title blockage and get the title issued in their name. This can be accomplished early in the arbitration process, or even after arbitration has failed, assuming the buyer is in a position to work through the process after the “return window” has closed with the auction company.

Obtaining a court-ordered title can be the difference between a successful blue light auction and starting over with a different vehicle. The team at CarTitles.com can help buyers obtain court-ordered titles for cases of missing or lost titles, and we are experts at navigating the requirements that vary from state to state. Click the button below to connect with one of our experts today.

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