Law Enforcement Seizing Vehicles in Street TakeoversHere’s an interesting new development from the law enforcement side regarding vehicles: they’re now wanting to seize vehicles that are involved in these street takeovers where crowds of people go to an intersection and do donuts and burnouts and all that kind of stuff. And they want to seize the cars. The problem with that is, what if you’re just an innocent bystander? What if you just pulled up and pulled over to the side because you couldn’t get through? Are they going to try to claim your car?
Challenges of Retrieving Seized or Impounded VehiclesOne of the things we run into a lot with vehicle titles is when a vehicle is seized or impounded—it’s very difficult to get that vehicle back unless you have the physical title in your hand.
Importance of Having Your Vehicle TitleIf you don’t have that title because you lost it or never transferred it, sometimes the towing company can hold that car longer than you would be able to get the title that fast, and then they can sell it at auction. Then you lose your car and they keep the money. So make sure that at any given time you always have the title in hand.
Avoiding Auto Seizure SituationsIf your jurisdiction where you live is looking at some of these auto seizure policies—whether it’s for a street takeover, whether it’s for parking, whether it’s for any other type of scenario—make sure you avoid the situations that could get your car caught up in some type of vehicle seizure where you can’t get it back without its title.
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Disruptions in the Used Car MarketSo if you’re in the automobile market looking for a new car or used car, you may be finding that there are a lot of pricing disruptions in the used car market. Why is that? Well, even though prices spiked up quite a bit a few years ago, they kind of leveled off. But expect that they’re going to go even higher or maybe even stay high because here’s what happened.
New Car Manufacturing DisruptionsThree years ago, in about 2021, there was a very serious disruption in new car manufacturing, meaning that a lot of automakers had trouble getting inventory for their parts. They had trouble with their supply chains. They had trouble with even COVID disruptions of their factories with employees. So there were a lot of reductions in new car inventories. Remember when you drove by dealerships in 2021 and 2022? There were empty lots. There were maybe five or six cars out front where there used to be oceans of cars.
Impact on the Used Car MarketWell, used car markets come from previously sold new cars. There’s not a used car factory. The used car factory happened three years ago. So all the three-year-old cars you’re looking for today would have had to be manufactured in 2021 or 2022. That didn’t happen. So there will be a lot fewer used cars in the market in the next few years. It’s kind of like those empty lots that happened on the new car side are now going to be empty lots on the used car side. It’s the same inventory, the same cars.
What to Expect in the MarketSo expect that you’ll find older cars with higher mileage. You might find some newer cars with low mileage, but they’re going to be a lot more money. Or sometimes, it’s even better to buy a new car. So if you can find an older vehicle that’s in good condition, maybe 10 years old or 12 years old, that would be usable for the next couple of years to kind of bridge the gap. That might be a way to go until the used car market sorts itself out.
Ensuring a Smart PurchaseAnd again, sometimes those older cars come with title problems, and that’s one of the things we deal with in our vehicle title division. Just make sure you get a good inspection. Make sure you have very good research on the history of the vehicle and that you have any title problems squared away before you move forward. So that even though you’re saving money on a used car, it doesn’t turn into a nightmare for some other reasons.
Why Is It So Hard to Get Processing from the DMV?So why is it so hard to get processing from the Department of Motor Vehicles? Why do you have to wait so long to get titles, registrations, license plates, driver’s licenses? And why is it so hard to deal with the DMV? Well, it’s not unique to your state. You know, we talk to thousands of people every day, and many people say my state is the worst when it comes to the DMV. Well, think about it before you say that. Think back and see what other states you’re aware of. You probably only know about your state, and it seems bad compared to other interactions you have, maybe dealing with companies or private enterprises.
Government Agencies vs. Private EnterprisesAnd that’s true. Dealing with any government agency is going to be different than dealing with a private company. But why is it so hard with the DMV? Here’s an article from South Florida: People have to camp out and deal with long lines to get appointments at the DMV. And here’s the reason why. It’s not that the DMV is out to get you. They’re not trying to hurt you. It’s that it’s a very underfunded government agency.
DMV Budget and Prioritization IssuesWhen it comes to allocating budget money to different organizations, government budget leaders don’t think about, “Hey, let’s give a bunch of money to the DMV.” They figure the DMV makes money from titles and registrations and all their fees. You don’t get a lot of people that are struggling because of the DMV. You get people that are struggling because of other social assistance programs, but not necessarily the DMV. And it’s a kind of “squeaky wheel gets the oil” situation. The DMV doesn’t squeak a lot for more budget.
Impact of Budget Constraints on DMV ServicesWhat happens is when the DMV allocates what their budget’s going to be, what their money’s going to be, they don’t have extra money to give out to employees for more salaries or more hours. So you have lines, and you also get high turnover. Because when you have an organization or an agency or department that doesn’t have a lot of budget, you don’t have a lot of promotions. You don’t have a lot of raises. So people who are good at their job may either go somewhere else, they may go to another agency, they may go to the private sector. So you’re left with very high turnover of people that maybe don’t have the same knowledge.
Common Issues with DMV InformationWe get a lot of feedback from our customers and also even when we talk to the DMV. Sometimes what they’ll tell you is actually not correct. It’s not that they’re trying to lie to you or they’re stupid. It’s just that they deal with the most simple, repetitive scenarios of titles and registrations. And when something comes across their desk that’s not standard, not normal, sometimes they have to guess, or sometimes they go by what they think is correct. So expect that to be the case with the DMV.
Challenges in Obtaining Titles and RegistrationsEven with something like a duplicate title, many times you have to go in person and sign paperwork and do a lot of jumping through hoops. So we try to make it easy on our website, cartitles.com, to give you all the simpler solutions to getting a title—all the easier ways to get a title. It’s probably going to cost a little more money. It might take you a little longer even. But if you’re not in a big rush and you’d rather have convenience, there are options rather than dealing directly with the DMV that we’re glad to help with.
How to Save Time at the DMVOr if you do want it done the absolute cheapest way and you’re willing to put up with some aggravation with the DMV, our website will also give you instructions on how to try to make it a little easier. One of the best suggestions we have is: don’t go to the DMV empty-handed. Have all the documents, all the forms already filled out, already prepared. Because sometimes if you go to the DMV without the forms, you wait in line, wait for your appointment, you get to the front of the line, and they say, “Here, you need to fill out these forms. Go over to that desk and fill them out, and then go to the back of the line.” So if you go in with the forms already done, you may save yourself some time at the DMV.
Dealing with Import and Export BrokersWe deal with a lot of import and export brokers for cars and motor vehicles, and a lot of times they’re frustrated with all the paperwork you have to do to export a vehicle. You might be thinking, “Why is there paperwork to export a vehicle? I thought Customs was only concerned about importing and cars coming into the country?”
Well, that’s true for the most part. I mean, if you’re importing a container full of bananas, they want to make sure there are no spiders in it or snakes or disease. If you’re exporting bananas, they really don’t care. But vehicles are different because when you export a vehicle, you might also be causing harm if it’s a stolen vehicle or has liens on it.
Scrutiny of Motor Vehicles in the Export Process
The Smuggling of Stolen CarsThe key to these smugglers smuggling cars is that you can send it to Africa, Europe, or South America, and now you have a car that you can sell for full value because they’re not going to really check the stolen records.
This is the reason why paperwork is a little more tricky to export vehicles now—because they’re making sure cars that are stolen or that have liens on them aren’t going out. A lot of times people will buy a car under a straw buyer name at a dealership with a lien on it, so they don’t really pay any money for the car. Maybe they pay a $500 down payment, they get a loan for the car, and then they export it overseas. They stop paying the loan and they have a free car in another country.
Increased Scrutiny and Paperwork for Export VehiclesSo, the crackdown is making it harder to do paperwork for export vehicles. A lot of the cars that come out of Copart or IAAI have “export only” on them. A lot of export brokers are now having to do more title work because of the vehicle’s scrutiny of being hidden in shipping containers, and they will X-ray these containers. If they see it looks like there’s a vehicle in it, they’ll pop that thing open and make sure that it’s been declared properly with the right VIN number.
How to Get a Lien Released for a Motor VehicleSo how do you get a lien released for a motor vehicle so you can get your title? There are several different scenarios that come into play. It could be that your loan is paid off. It could be your loan is not paid off. It could be your lender is out of business. There’s a lot of different scenarios that you need to deal with, and each one has a different procedure.
Always Contact the Lien Holder in WritingHow do you do this? Well, first of all, you need to make sure that whatever the scenario is that when you make your contact with the lien holder, you always do it in writing. Never do it by phone, by email, by text message, Facebook, LinkedIn. Never do it that way. Always do it in writing—postal mail.
Why Writing is ImportantAnd here’s why. Lien holders do not have a department of people that are just sitting around waiting to do lien releases. Everybody at that bank is doing some other job—loan payments, new loans, title work, that kind of thing. They’re not doing lien releases. So when you ask them to do a lien release by phone, that person now has to drop everything, find all the right forms, look them up, fill everything out, sign them, and mail them to you.
The Process of Sending PaperworkThey’re not going to do that. They might say they will, but then they’ll just go back to their job. Or sometimes they’ll even tell you, “I’m not going to do that.” So if you take it upon yourself to mail them the paperwork, you’ll get it back. And we’ll talk about specifically what you want to send them. But do it in writing.
If Your Loan is Paid OffIf your loan is paid off, just contact the lender directly. It’s a lot cheaper and faster if you contact the lender. We have a title service—we can do it for you. It’s going to cost more money because now you’re paying us to do the work, and it’ll take a little bit longer. It’ll probably add three or four days to get your lien release if we do it. However, it’s easier because now you don’t have to do all the paperwork. But that’s a personal decision.
If Your Loan is Not Paid OffIf your loan is not paid off, if it’s a charge-off, or a write-off, or delinquent, you still want to contact them in writing. But you also want to include what’s called a letter of non-interest and an affidavit of facts. Those are two things you want to include if your loan is not paid off.
If the Loan is Charged OffMany times, the lender is going to put it in their computer, type it up, they’re going to see it’s a charge-off, and they send you your lien release. Always make that attempt. If for some reason they don’t respond, you have a backup method, which is a magistrate title, which we’ll talk about afterwards as well.
If the Lender is Out of BusinessIf the lender is out of business, take your first step and send out the package to the last known address for that lender. And if you don’t know the address, you can look it up in the Secretary of State’s records. You can look it up in the corporate records or the banking records. But send out that package. It might just come bouncing right back to you. That’s, you know, perfectly normal. But at least you can show that you sent it to their last known address.
What to Do If There is No ResponseIf it comes back to you, or if they’re not there, then what you do is you file that magistrate title—that court order title. You just tell the magistrate, “Look, I tried to contact the lender, they didn’t respond, they didn’t claim the vehicle.” And then the magistrate or the court clerk can sign that lien release, and it still clears it off your title. So that’s your backup method.
If the Loan is in DefaultIf the loan is in default, charge-off, or write-off, same thing—you want to start with sending it to the lender. If they don’t reply back, then you file it with the magistrate to tell them, “Look, they didn’t respond, and I want the court to sign off on this.”
The Importance of Making a Formal RequestRemember, you have a 0% chance of getting a lien release if you don’t make the formal request. If you make the request, now you have a shot. From what our clients tell us, from them getting lien releases, about 82% of the time, even if there’s money owed, you’ll get a lien release. If the money is paid off, you get it almost all the time.
Always Do It in WritingRemember, always do it in writing—not by phone or email. If you do it by phone or email, it’s back down to 0%. Even if the loan is paid, the bank probably won’t send it to you if you just call them on the phone and ask them to send you a lien release. Always do it in writing. That way, you’ll have a record, too. If they don’t send it, you know that you at least tried.
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