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FAQs About Abandoned Vehicles

What is an abandoned vehicle?

An abandoned vehicle is one that the owner has left behind with no intention of returning. If you know where the vehicle came from or who it belongs to, it’s probably not an abandoned vehicle.

Who can file an abandoned vehicle process?

In most states, not everyone can file for an abandoned vehicle process. In fact, most states require that you are a licensed automotive repair shop, automotive storage facility, towing company, or another authorized company that deals with vehicles.

What is the first step in an abandoned vehicle process?

The first step is often to verify that the vehicle’s value is within your state’s guidelines to use this process. Many states require the value of the vehicle to be around $5,000 or less. This means, in most states, you can’t use an abandoned vehicle process on a luxury or high-value vehicle. However, it’s important to note that not all states have vehicle value restrictions.

What is the second step in an abandoned vehicle process?

The next step is to submit a DPPA request (Driver’s Privacy Protection Act) to the DMV to obtain owner and lienholder records. The DPPA protects driver information from being used or obtained in an unlawful manner. If you already know the owner of the vehicle, you still have to submit a DPPA request to obtain the official owner and lienholder records.

Why do the records have to be from the DMV?

Unfortunately, the abandoned vehicle process is often fraudulently used. The DMV requires that you use their information because, in the past, scammers have used fake addresses and names to avoid actually contacting the registered owners. When the notice is returned unopened, the scammer now has the legal evidence they need to continue with the process. If they were required to use the official DMV records, the DMV would know that they didn’t contact the actual owner and they are in fact scamming the process.

Why can’t you move an abandoned vehicle from where it was found?

Most abandoned vehicle affidavits require that you keep the vehicle in its original location. By moving the vehicle after beginning the process, the DMV can’t verify if the vehicle was actually found where you said it was, which will void the entire process.

Why aren’t abandoned vehicles “finder’s keepers”?

Abandoned vehicles aren’t automatically finders keepers because most vehicles that are called abandoned aren’t actually abandoned. The abandoned vehicle process is intentionally drawn out to ensure that all of the correct owners have been notified. For example, say you go on vacation and loan your car to a friend for the week. If abandoned vehicles were “finder’s keepers”, this person who is in physical possession of your vehicle could claim your vehicle as abandoned on their property while you’re away and retitle it in their name.

Why are abandoned vehicle packages often rejected?

As we mentioned previously, this process is often abused. The state’s first line of defense to protect against these fraudulent applications is to reject all of them that come in. If someone is scamming them, they may get scared off. If it’s not a scam, it’s likely to be resubmitted. 

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Colorado Abandoned Vehicle Title Procedures

Abandoned vehicles are a common concern, often prompting individuals to seek ways to obtain a title for a vehicle they’ve acquired. However, the term “abandoned” doesn’t necessarily mean a vehicle has magically appeared on your property without explanation. In most cases, people claiming a vehicle is abandoned have acquired it through various means, such as purchasing it on Craigslist, acquiring it from a towing company, or receiving it for sale without a title.

Here, we’ll examine an example from the state of Colorado, using their Department of Revenue’s “Abandonment of Motor Vehicles Private Tow Requirements Checklist” to illustrate why the term “abandoned” doesn’t equate to a straightforward process for obtaining a title.

Abandoned Vehicle Process Overview:

  1. Tow Operator Notification to Law Enforcement:
    • Within 30 minutes of picking up an abandoned vehicle on private property, the tow operator must contact law enforcement.
  2. Record Search Submission to DMV:
    • Between two and ten calendar days of towing, the tow operator must submit a record search request to the DMV to identify the vehicle’s owner.
  3. Notice to Owner:
    • The tow operator sends a notice to the owner, stating that the vehicle has been towed and impounded. The owner typically has 30 days to pay outstanding fees and retrieve the vehicle.
  4. Vehicle Sale or Disposal:
    • If the owner doesn’t retrieve the vehicle within the specified time frame, it can be sold or disposed of. The sale must occur within 30 to 60 days from the postmark of the notice.
  5. Forms and Documentation for Title Application:
    • Depending on the vehicle’s value, specific forms and documents are required to obtain a title. For vehicles valued at $350 or less, it may receive a junk or parts-only title.

Challenges and Additional Requirements:

  • Bond Requirement for Vehicles Valued Over $350:
    • If the vehicle’s value exceeds $350, the buyer must purchase a surety bond for a minimum of $700.
  • Additional Documentation Needed for Title Application:
    • Various documents such as an original private tow information request, bill of sale and appraisal to the buyer, VIN verification, application for title event inspection, and a no-record printout are necessary.
  • Salvage Designation Disclosure:
    • The tow operator is required to disclose if the vehicle has a salvage title. If indicated during VIN inspection, the buyer may apply for a salvage title.
  • Commercially Reasonable Sale:
    • The vehicle must be sold in a commercially reasonable manner, often through public auctions.

Abandoned Vehicles Are Not Finders Keepers

The outlined process in Colorado demonstrates that abandoned vehicles are not simply finders keepers situations. For civilians without tow operator licenses, the ability to declare a vehicle abandoned and initiate this process is limited. Even when allowed, it involves a complex series of steps and requirements.

Alternative Methods for Obtaining a Title: If you’re seeking a title for a vehicle you’ve acquired, there are alternative methods that don’t involve labeling it as abandoned. Options such as surety bond titles, prior owner contact, magistrate titles, and court order titles provide more controlled and legally sound avenues.

Consulting Title Professionals: For assistance in navigating the complexities of obtaining a title, reaching out to title professionals, whether in the title division or the surety bond division, can provide valuable guidance. They can offer insights into the most suitable methods for your specific situation, helping you secure a legitimate title without resorting to the abandoned vehicle process.

In summary, understanding the limitations and complexities of abandoned vehicle procedures highlights the importance of exploring alternative avenues to secure a title legally and effectively.

Abandoned Vehicle Title Document Requirements

Hello, this is Dave, and in this video, we’re going to delve into the intricacies of the unclaimed vehicle titling process. It’s a topic that generates numerous inquiries – approximately 7 to 900 calls a day – and we want to shed light on the process using a specific example from Franklin County in Ohio. While the details are jurisdiction-specific, the fundamental steps are similar across various regions. So, whether you’re dealing with vehicles in Ohio or elsewhere, this guide provides a comprehensive overview of what to expect and whether it’s a process worth pursuing.

Understanding the Unclaimed Vehicle Titling Process:

  1. Verification of Vehicle Value:
    • Before diving into the process, it’s crucial to verify that the vehicle’s value aligns with the specified guidelines. In Franklin County, Ohio, this applies to vehicles with a value less than $3,500.
  2. File BMV Form 1173:
    • The first official step is filing a BMV Form 1173 (or its equivalent in other states), requesting information on the lien holder and owner’s last known address. This form is submitted to the DMV to notify them of your intent to claim the vehicle.
    • Note: This is often considered Step 2, but it’s imperative to complete it before proceeding with other steps.
  3. Mail Certified Notices:
    • Once armed with official information from the DMV, the next step involves sending certified notices, return receipt requested, to the owner and lien holders. This notice includes details about the vehicle’s location, value, and your intention to claim it.
    • A waiting period of 15 to 60 days (depending on state statutes) is crucial before advancing to the next step.
  4. Unclaimed Motor Vehicle Affidavit Form:
    • The claimant needs to complete an Unclaimed Motor Vehicle Affidavit form, which essentially serves as the application for title. This includes providing evidence such as repair agreements, valuation printouts, and certified mail documentation.
  5. Apply for Title:
    • The final step is applying for the title. This involves visiting a clerk of court or title office, presenting all evidence from Step 4, and completing the application process.

Additional Considerations:

  • Protection Against Fraud:
    • The unclaimed vehicle process is designed to prevent fraud, and as such, it undergoes thorough scrutiny. Any attempt to abuse the process may result in rejection and legal consequences.
  • Auditing by DMV:
    • Government agencies often audit these applications due to their susceptibility to abuse. This meticulous review ensures the legitimacy of claims and prevents fraudulent activities.

Closing Thoughts:

Navigating the unclaimed vehicle titling process requires attention to detail, adherence to timelines, and compliance with official procedures. It’s a process frequently sought after, but one that should be approached with caution and transparency.

For more detailed information, including forms and documents for every state, feel free to visit our website at CarTitles.com. We provide resources for a DIY approach, or you can explore our services if you prefer assistance. Remember, while the process can be time-consuming, it offers a legal solution to excess vehicle storage or abandonment issues.

If you have further questions or need guidance, don’t hesitate to reach out. We’re here to help you navigate the complexities of unclaimed vehicle titling.

Why Do So Many Luxury Cars Have Montana Tags?

Why do you see so many Montana license plates all over the country especially on motor homes RVs and sometimes high-end expensive vehicles? Well, the reason why is there are some advantages that people may use through titling and registering a car in the state of Montana that could be advantageous for an owner who may have a full-time RV or maybe has multiple houses and multiple addresses. 

The two most common reasons are:

  1. Sales tax advantages
  2. Titling process

Sales tax

The state of Montana does not charge sales tax on vehicles. So if you have a vehicle that you’re purchasing and you can title it in Montana if it’s legal, you may be able to avoid having to pay sales tax, which you would have to pay if you title it in a different state.

Now you want to ensure you’re following all proper laws and regulations and not doing tax fraud or tax avoidance. But if you legitimately have a multiple-state residency, have a full-time RV, or you have some domicile in Montana, you may be able to title your vehicle in that state and not pay sales tax. 

Title process

In order to do this, you will have to create a corporation in the state of Montana unless you’re a resident with a Montana license, but that’s not what most people do. Most people are residents of another state or multiple states. They form a corporation in Montana and title the vehicle in that corporate name. So you’ll have some corporation filing fees usually a couple of hundred bucks and you may have to pay a service to be a registered agent in Montana to title the vehicle in that state. 

Insurance considerations

You also have to consider insurance issues because if you get vehicle insurance for a motor vehicle titled in Montana, you’re representing to your insurance company that the vehicle is domiciled in Montana. Also known as the location where the vehicle is garaged. So you want to make sure you’re not misrepresenting your garage location to your insurance company and here’s why. You might think that you could just tell them “Hey it’s in Montana”, but if you have any type of a claim for an accident or damage, whether it’s your fault or not, you may have issues where the insurance company wants to deny your claim because you’ve misrepresented on your application where it’s garaged. 

Why do they do this? Well, if they’re giving you an insurance rate based on having your vehicle most of the time driving in Montana, it might be a lower rate because it’s a safer state. But if it turns out, you live in a big city downtown Seattle or downtown Chicago, and the rates would be higher there because of more theft, accidents, and more risk of damage, you might be accidentally unintentionally committing insurance fraud.

So you want to make sure you get good legal advice from an attorney and that you get good insurance advice from your insurance agent before you place insurance on the vehicle in Montana. You may be able to get insurance for your Montana title vehicle and still have a garage address elsewhere, just make sure your scenario matches the proper use of this process. 

That’s the reason why there are so many exotic vehicles and high-end vehicles, and expensive motor homes that have Montana license plates on them.  Next time you’re driving by an RV resort or an exotic car meet-up, look at the license plate and see how many are Montana. Even if you’re not anywhere near Montana, you may be surprised at how common it really is.

Want a CarTitles.com professional to do it for you?

For as little as $159 for most processes, we will save you the headache and prepare all of the car title paperwork needed to get you a new title. Simply choose the title recovery method you’d like to use and we’ll get started!

Select your title recovery method:

Order Vermont Title LoopholeOrder Deceased Owner Title TransferOrder Bonded Title ProcessOrder Abandoned Vehicle ProcessOrder Prior Owner ContactOrder Lien Release Request Letter

Title-Holding vs. Non-Title-Holding States

What happens to your car title when it’s financed? Well, this entirely depends on whether or not you live in a title-holding state or a non-title-holding state.

What is a title-holding state vs. a non-title-holding state?

Title-holding state: A title-holding state will send the vehicle title with the owner’s name and lienholder’s name directly to the vehicle owner to hold until the loan is paid off.

Non-title-holding state: A non-title-holding state means that this particular state requires that the lienholder hold the title until the loan is paid off. Most states in the US are non-title-holding states.

What states are non-title-holding states?

There are currently 41 non-title-holding states:

Alabama Idaho New Hampshire Tennessee
Alaska Illinois New Jersey Texas
Arizona Indiana New Mexico Utah
Arkansas Iowa North Carolina Vermont
California Kansas North Dakota Virginia
Colorado Louisiana Ohio Washington
Connecticut Maine Oregon West Virginia
Delaware Massachusetts Pennsylvania Wisconsin
Florida Mississippi Rhode Island
Georgia Nebraska South Carolina
Hawaii Nevada South Dakota

What states are title-holding states?

There are currently 9 title-holding states:

Kentucky Minnesota New York
Maryland Missouri Oklahoma
Michigan Montana Wyoming

Want a CarTitles.com professional to do it for you?

For as little as $269 for most processes, we will save you the headache and prepare all of the car title paperwork needed to get you a new title. Simply choose the title recovery method you’d like to use and we’ll get started!

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