As title specialists processing thousands of inquiries annually at CarTitles.com, we’ve seen firsthand the complications that arise from purchasing vehicles without proper documentation. Here’s what every potential buyer needs to know.
While it’s often possible to obtain a title for a titleless vehicle, there’s never a guarantee. The most frustrating part? You won’t know if you can get a title until after you’ve already purchased the vehicle.
Many buyers assume that if a car isn’t stolen, getting a title won’t be an issue. However, numerous other situations can permanently block title acquisition:
Even with methods available for lien release (detailed at CarTitles.com), about 15% of liens prove impossible to clear, regardless of your efforts.
Cars designated as “parts-only” or “junk” face different challenges than salvage vehicles. While salvage vehicles can potentially return to the road after inspection, junk-designated vehicles are permanently barred from titling.
Unpaid taxes, registration penalties, and DMV holds from previous owners can create insurmountable obstacles to obtaining a title.
Probate issues, inheritance disputes, and other legal claims can prevent title transfer, often without any advance warning.
While CARFAX and similar VIN check services provide valuable information, they have significant limitations:
As title specialists, we strongly advise against purchasing any vehicle without a title unless you’re prepared to lose your entire investment. Consider it purely speculative, similar to gambling.
If you’ve already acquired a vehicle without proper documentation, visit CarTitles.com for potential solutions and expert assistance.
For more detailed information and regular updates on vehicle title issues, subscribe to our YouTube channel for expert insights and discussions.
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Title Company and Buying Cars Without TitlesOkay, I know that we are a title company obviously our website is cartitles.com but really you have to stop buying cars without titles. All the people that are out there that call us every day, we get hundreds of calls every day, sometimes over a thousand contacts. A lot of people buying cars without titles and certainly in many cases, in fact most cases, you can actually get a title for a car that you bought without a title. However, there is some percentage of vehicles that are not eligible for a title and the problem is there’s no way of knowing in advance if you’re able to get a title.
Risks of Buying Cars Without TitlesSo if you have not already purchased a car and it does not have a title, we never recommend buying a car without a title because there’s some chance that you could never get a title. Now obviously the first thing that people think of is, well I know it’s not stolen. Well, that’s only one possible scenario that will keep you from getting a title. There’s all kinds of other situations that could block you from getting a title. For example, if there’s open liens on it that hold the title back.
Releasing Liens and Other IssuesNow there are some methods you can use to release the lien and you can see that on our website cartitles.com, but those are also not 100% effective if the lien holder is adamant about their lien. In fact, about 12 to 15% of the time, you cannot get a lien release, but 85% of the time you can. But that 15% could be a problem for you. What if the car is reported as parts only or junk? That’s not the same as a salvage. It could be that the car is not eligible for a title because some insurance company put in a notice on the system that it’s not eligible.
Other Scenarios Preventing Title EligibilityWhat if at some point somebody had it and didn’t pay their back taxes or the registration and accrued penalties and that’s at the DMV blocking the title? That could be another problem. In some cases, there are other claims against the car from a prior owner. Maybe it went through probate, maybe it’s in a will. Again, you won’t know these things until you try to get the title. There’s no database or online search you can do to find this out. Sure, you can run a Carfax and Carfax or VIN search or any of these online, you know, cheap $10 VIN checks will give you some information, but they don’t show liens. They only show stolen, about 60 to 70% of the time accurately. They don’t show other claims. They do show things like salvage, but sometimes it’ll say salvage when really it’s a junk.
Limitations of Carfax and VIN SearchesA salvage car can be inspected and put on the road, but a junk car you cannot. So take it with a grain of salt. CARFAX is definitely a place to start, but it’s certainly not the official record of the government. It’s a third-party database, and it does a pretty good job, at least it’s something. But even if you look at their own disclaimers in Carfax or VIN check or any of these online VIN searches, it’ll tell you that it’s not 100%. So you’re always taking a risk if you buy a car without a title.
Final Recommendation for Buying Cars Without TitlesSo our official position is stop buying cars with no titles unless you’re looking at that money as completely speculation. You’re okay to lose it if you can’t get a title and it’s like a gamble. But if you already did buy a car without a title, now you have to do something, and now you can use our website cartitles.com.
Why Mechanics Liens Are Not the Best Way to Get a TitleSo you’ve heard me talk many times about mechanics liens and why they are not the way to go about getting a title. Many times, an automotive shop or even a private citizen thinks, “I’ll just slap a mechanic on this car and get a title for it.” It doesn’t work. It’s the worst way to get a title. In the past, years ago, it was a viable opportunity, but nowadays, you definitely don’t want to use a mechanics lien as a way to get a title. This article tells you exactly why. Here’s an article from The Daily Dot.
A Mechanic’s Ordeal With a LienInterviewing a mechanic who works on cars for a living, somebody brought in a car, dropped it off for work, and never picked it up. His ordeal in even trying to get a title was so long-winded and so torturous that he swore he’d never do it again. Here’s why. For many years, an automotive mechanics lien was a viable way for a legitimate automotive repair shop to get paid for their vehicle. Then, about seven or eight years ago, in 2015 or 2016, many automotive shops started to abuse the process. They used it as a way to get a title for their buddy who lost a title they bought on Craigslist.
Abuse of Mechanics LiensThey put ads in the newspaper that said, “Hey, if you need to get a title for a car, bring it to us, and we’ll put through a fake mechanics lien.” Some shops were using it to get titles for cars that they really didn’t work on that much. The privilege given to automotive shops started to become curtailed. Some states stopped it altogether. There was a period of time in Indiana where they stopped and put a hold on all mechanics liens for about 14 months.
Stricter Requirements for Mechanics LiensNow, even in states that allow them, they do what’s called a level three audit on every case that comes through their file. They make sure that the owner signed a repair order authorizing work. They ensure the car was actually auctioned off to the public, not just given to somebody directly. They make sure all the proper procedures are followed. All the right notifications are followed, meaning certified letters must be sent to the lienholder, the owner, and any interested parties multiple times over the course of two or three months.
The Complexities of the ProcessYou have to send out a certified letter, wait 45 days, send another one, wait 30 days, and put an ad in the newspaper announcing that you’re going to auction off the car to the highest bidder. That way, people will come bid on the car—you just can’t give it to one person. It’s a very complicated process. For the most part, even if you are a legitimate automotive shop and you did work on the vehicle, the easier way to get a title is just to go to a court order title.
The Rise of Alternative MethodsIt’s faster and cheaper, and you don’t have to jump through as many hoops. Because mechanics liens were used improperly for so long, all the states’ DMV commissioners have cracked down on them. In fact, the Commissioners have a biannual meeting where they discuss this issue. For many years, they’ve said that half of mechanics liens are fraud, and the other half are scams.
Oversight on Shops Using Mechanics LiensThey now audit the ones that come through and review records for that shop to see how much they have paid in payroll taxes, sales taxes, and permit fees. This gives them an idea of how big the shop is. For example, if Joe’s Automotive reports $38,000 in sales taxes last month, but they are putting through 10 mechanics liens, that raises a red flag.
A Real-Life Case StudyIn this article, a shop owner faced a difficult process. A customer brought in a car, approved a repair quote, and the shop installed a new transmission. Afterward, the customer never came back. The shop had to go through a mechanics lien, which turned into a brutal process taking seven or eight months, costing thousands of dollars. It was rejected twice because it was audited and found to have minor errors.
The Verdict on Mechanics LiensThis article, shared by The Daily Dot, includes quotes from CarTitles.com stating that while mechanics liens are a legal process allowing a shop to recover costs, they are complex to execute and should only be used when absolutely necessary. States require cars to be sold at auction, and in some cases, shops can only keep the money owed for repairs, with anything over that amount going to the state.
Consider Alternative OptionsThink twice if you’re considering a mechanics lien. It’s certainly not a go-to method if you’re not a licensed mechanic or trying to get a mechanic to do it for you on a car that wasn’t in their shop. Even if you are a mechanic, there are better, faster, and more cost-effective methods available today.
Vehicle Title FraudHere’s another video in our series about vehicle title fraud. A lot of times, it’s difficult to get titles for vehicles that are gray market or imported vehicles. Some of these vehicles are these JDM vehicles, the Nissan Skyline, and some of the other desirable cars that come out of Japan. The Japanese kei trucks are an example, but it could be any kind of vehicle that was originally not manufactured for the US market. These vehicles are desirable because they’re unique, something that people want to have, and they don’t sell them here.
Importation Challenges and LoopholesThe problem is getting these vehicles imported and titled. There is a 25-year exemption for importation, but that may not solve title problems. Sometimes, if the vehicle is newer than 25 years, loopholes are used to try to get around that. However, if you use these loopholes, you run the risk of having legal problems. For example, there was a company called Soho Imports that allegedly defrauded customers by selling JDM cars with fake titles and import documents.
Customs Requirements and Document FraudWhy does this happen? A lot of times, these cars won’t pass through customs even if they qualify for the 25-year exemption. If the vehicle doesn’t have proper documentation or paperwork, it still won’t get through. For vehicles newer than 25 years, they must meet certain criteria, like having airbags and anti-lock brakes. Some sellers fake import documents to bypass these requirements. They might even change the year to make it look older than 25 years.
Consultation and Expert AdviceRemember, you have access to live, one-on-one consultation with the undivided attention of a licensed, certified expert in this subject and many others. We want to listen to your story, hear your questions, and provide expert advice about your options. We’re here to help you understand your situation and guide you through your choices.
The Risks of MisrepresentationDMV fraud often involves altering documents, such as the year on the title, to misrepresent the vehicle. For instance, a client attempted to title a VW Beetle manufactured in Mexico in the mid-2000s. Although Beetles are desirable because they’re cheap, reliable, and easy to work on, this client faced customs and title issues. The suggestion to label it as a 1978 model was problematic because the VIN and part dates wouldn’t match. Misrepresenting documents to government agencies can lead to serious consequences.
Legal Consequences of FraudIn Florida, individuals allegedly faked titles and import documents. They ended up on probation and accepted a plea deal, which saved them from facing more severe penalties. If you’re considering importing a vehicle, ensure all paperwork is accurate and properly completed. Any misrepresentation can lead to revoked titles and legal troubles. Remember, signing documents under penalty of perjury carries significant risks.
The Challenge of Obtaining a Mechanic’s Lien Title for a Vehicle So why is it so hard to get a mechanic’s lien title for a vehicle, and why is it not always the best way to try to get a title? For many years, repair shops, garages, and towing companies have used the mechanic’s lien or towing lien process to get titles for vehicles. A lot of times, they thought vehicles were abandoned and wanted to get a title. They even sometimes took payments from outside parties to go through a fake mechanic’s lien process to get a title. A lot of times, people with title problems will ask, “Can I just put a mechanic’s lien on the vehicle?” or “I’ll just file for an abandoned mechanic’s lien.”
The Purpose of Mechanic’s Lien: A Payment Protection for Repair Shops Here’s the problem: the mechanic’s lien process is a privilege provided to licensed automotive repair shops in order to get paid for work when a customer fails to pay the bill. So, if someone brings in a car to get fixed, then decides they don’t want to pay, the mechanic’s lien is designed to help the repair shop get compensated for their work. However, that privilege is frequently abused—or maybe “expanded” is a better word—to try to get mechanic shops titles for vehicles under questionable circumstances.
Government Response: Tightening the Mechanic’s Lien Process What the government has done, and what different state DMVs have done, is make the process very, very difficult. It’s harder than any other process, such as getting a bonded title or a court-ordered title, because they want to ensure that if a repair shop is using the mechanic’s lien, it’s for legitimate reasons.
Common Cases of Mechanic’s Lien Fraud A very common case of fraud involves repair shop owners engaging in title fraud. This fraud often involves creating fake work orders and records, claiming to be filing a mechanic’s lien, and then using the process to get titles for vehicles that may have been bought at an auction without a title, purchased through Craigslist, or have a lien they want to remove.
Government Oversight and AI Monitoring The government scrutinizes each mechanic’s lien application and audits them. They also use AI and algorithms to monitor shops filing a high number of mechanic’s liens. The government checks the shop’s payroll and sales tax records to estimate the shop’s business volume. For example, if a shop with only one or two employees files more mechanic’s liens than usual, it raises red flags.
Legal Consequences of Filing a Fraudulent Mechanic’s Lien If caught, repair shops involved in title fraud could face severe penalties, including prison terms of up to 20 years and restitution to repay any fraudulent profits. For example, in a recent case, shop owners were charged with creating fake repair orders and selling vehicles illegally, resulting in charges for title fraud.
Mechanic’s Lien: Powerful but Heavily Scrutinized A mechanic’s lien is a powerful tool, but because it’s often misused, it is scrutinized more than any other type of paperwork. If you’re considering using a mechanic’s lien to get a title, it should only be used when someone has brought a car to a shop for repairs, has signed a repair order, and then hasn’t paid.
Alternative Title Methods If you have a vehicle that needs a title and are considering a mechanic’s lien, there are other methods that might work better. Options like a court-ordered title, bonded title, or other procedures are often easier to execute and less scrutinized than a mechanic’s lien. These methods can be found on our website.
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