What’s the difference between the title number and the vehicle identification number? The title number and the VIN number were made for two different reasons.
The title number is typically a 7-8 character or number string that identifies the owner of the vehicle. It doesn’t necessarily tell you much about the vehicle itself, but it’s made to identify the owner. The title number will change each time it is transferred to a new owner.
The vehicle identification number (VIN) is a 17-character string that identifies all the specifications of a vehicle (make, model, manufacturer, year, trim, etc.). The VIN does not show the owner of the vehicle, only the specific features, and history of the vehicle itself. The VIN will never change, even if it is transferred to a new owner. (Note: improperly changing the VIN is a felony)
Your title number can be found on your vehicle title or on your registration card. If the DMV recently sent you a notice to renew your registration, you’ll also find your title number on this document. Your title number is issued only by the DMV.
Your vehicle identification number will typically be shown in more places than the title number. This is because when cars are repaired using other parts, the VIN has to be verified as legal for road use before being used. Your VIN can usually be found on the dashboard, frame, cowl, door jambs, and under spare parts.
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Car title scams are a scary reality. At CarTitles.com, we work with clients every day who have unfortunately fallen victim to a car title scam. A car title transfer is a legal process so one may think it’s difficult to pull off a car title scam, but it’s important to remember that scammers also know these legal processes and how to get around them without being detected.
The ownership transfer scam is one of the oldest scams in the book and is still seen frequently. If someone says you need to transfer ownership to get a clean title, this is a red flag.
Someone will claim to be able to clear the lien off of your title, remove the bonded stamp, or get a new name printed on the front. They’ll tell you that the easiest way for them to help is if you signed over the title so they can sign the documents personally without a power of attorney.
Once you sign the title over, that’s it. The scammer can then transfer the title into their name because they have the signed certificate of title from you. If this happens, you won’t be able to report the vehicle as stolen because it’s no longer in your name.
Car title scams have been around for a while, but they continue to be popular among scammers due to the fact that they offer such a low-risk/high-reward scenario. Often, these scams are successful because they’re so unexpected and confusing for consumers. The best way to protect yourself from any type of scam is to be vigilant and educate yourself on common scam tactics.
A branded title is a designation on a vehicle title that signifies that the vehicle has been involved in a previous insurance incident and has been deemed by the insurance company subject to damage or a total loss. The claim may have been filed by an insurance company or by the owner of the vehicle.
A branded title does not necessarily mean that there was actual damage to the car, but it does mean that the car was involved in an accident and had to be repaired before it could be titled again.
There are many different types of branded titles for vehicles, some of the most common include:
When a vehicle incurs some type of loss event such as major damage, theft, or repair, the title may be designated as a salvage title. The decision to place a title in salvage status is normally made by the insurance company that pays a claim on the vehicle. In some states, there are statutory regulations that require an insurer to brand a vehicle with a salvage title. An example may be that a vehicle incurred damage that is more than 60% of its value. However, an insurance company can decide to place a salvage title brand on any vehicle it decides to, even if there is little or no damage.
Salvage titles can normally be registered for road use. In some states an inspection is required to make sure that the vehicle is safe for the road, and that any parts used for repair are legal and have a verified origin. For your own safety make sure that any vehicle you purchase as a salvage title has operational airbags and valid documentation of the VIN# and all major component parts.
Vehicles for which the title has been sold to a junkyard may be designated junk titles if it is intended to be scrapped or sold for parts. A vehicle’s VIN in the NMVTIS database means that it can no longer be titled after receiving a junk title brand.
A vehicle that has been substantially rebuilt may have a rebuilt title brand issued by an insurance company, body shop, collision center, or licensed rebuilder. A vehicle with a rebuilt title can normally be registered for road use but may have an inspection requirement to verify it is roadworthy. The vehicle insurance may have limits if the title is rebuilt.
A parts-only designation is typically found on a bill of sale or transfer form, not on a title. However, if a parts-only bill of sale is submitted for vehicle title processing, the title may be issued with a salvage brand or other cloud on the title.
When an insurance company has paid a claim for a vehicle and taken ownership from the insured, they have the option of processing the title as a certificate of destruction. In this case, the vehicle is intended to be destroyed and never to be used on the road or registered. It is unlikely that a vehicle with a certificate of destruction can ever be issued a valid title for transfer.
A vehicle with a certificate of destruction can sometimes appear to be in acceptable condition. The insurance company decides to prevent the car from road use to limit its liability in the event that the car is driven and is involved in an accident at a later date. If it is proven that an injury in an accident is because the car had some existing defect, the injured person could claim that the insurance company should not have let the car go back on the road.
A vehicle in otherwise good condition can be issued a certificate of destruction if the insurance company thinks that the airbags could be damaged, the frame could be weakened, or simply does not want to spend the money to do a detailed inspection, and just wants to sell it cheap to a junkyard.
Depending on your needs, a vehicle with a title brand can be a great option if you want to fix up a salvage vehicle or use it for parts. Before moving forward with a vehicle, make sure to check the title for permanent title brands. Any attempt to remove, obscure, conceal, or alter a title brand using unauthorized means can be a violation of law often referred to as “title washing” or “title laundering.” The salvage title designation is shared with all 50 states. Evading a title brand is a serious offense. Getting a new title for that purpose is illegal and results in serious criminal penalties.
Get a new VIN for your “junk” vehicle and retitle your vehicle as a DMV assembled vehicle.
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Do you need to obtain a surety bond for your car title? A surety bond process, also known as a bonded title process, is a great way to get a new title. This can be especially helpful if your title is lost, damaged, or missing. Read on to learn how to get a surety bond for a car title.
A surety bond, known in this context as a title bond, is used to secure the claim of ownership over a car or vehicle that does not have sufficient evidence of ownership. A surety bond is a form of insurance that you obtain to back up your claim that you are the owner. In the event that someone else comes forward to claim ownership, the surety bond company will cover the damages. However, you’ll be on the hook to pay back the surety bond company.
The cost of a surety bond is based on the value of the vehicle. Most states will require the bond amount to be 1.5x the book value of the vehicle. This means, that if your vehicle is worth $4,000, your surety bond amount should be $6,000.
However, you don’t have to pay $6,000 to the surety company to get a surety bond. Most surety bonds cost around $100-$150 to purchase for most average-value vehicles. The remaining amount of the surety bond won’t come into play unless there is a discrepancy in ownership after the title is issued. If that were the case, you will be responsible for paying back the remaining amount.
Surety bonds are often purchased from a surety company, such as ProBonds.com. Since a surety bond is a form of insurance, many insurance agents are also able to issue surety bonds for car titles. Before purchasing your surety bond, make sure to verify the bond amount required in your state and that your state accepts bonded titles. Once issued, surety bonds are nonrefundable.
A lien on a car title is very common, especially if you financed your vehicle. What does it mean to have a lien on your car title and how do you remove it?
A lien means that someone has a claim on your vehicle. In the case of a car title lien, this person or business is more than likely your lender. When you get an auto loan, your lender (aka your lienholder) will place a lien on your title to signify that the loan has not yet been paid back.
The loan is the money you borrow to pay for the car, the lien is the legal process the lender takes to hold your car’s title as collateral. If you fail to make payments, your lender can repossess your car.
First, you should make sure that the loan has been paid off or otherwise satisfied. It’s illegal to remove or attempt to fraudulently remove a lien if the terms of the loan agreement have not been satisfied.
Once you verify that the loan is satisfied, send a lien release request letter to your lender. To release the lien, your lender must provide a lien release letter on their letterhead or a comparable letter of non-interest. Liens can only be released from DMV records when approval is given by the lender.
Yes! Once your loan is paid off, you will have a clean title in your name. With a clean title, you’re free to sell it, trade it in, etc. If you keep the lienholder’s name on the title, even if the loan is satisfied, the lien will often not be released automatically.
When your loan is paid off, your lienholder should stamp your title as paid and send it off to you to transfer to a clean title. However, most lenders don’t have a lien release department. It’s important to keep up to date on your loan payoff to ensure you submit your request for lien release as soon as your loan is paid off.
If it’s your car, you deserve a clean title in your name.
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